CH 23 Computational
Lance Corp.'s statement of CFs for the year ended Oct. 31 2017, was prepared using the indirect method and included the following: N.I.: 60,000 Noncash Adj.: Deprec. Exp.: 9,000 Increase in A/R: (5,000) Decrease in Inv.: 40,000 Decrease in A/P: (12,000) Net CFs from Op. Act.: $92,000 Lance reported revenues from customers of $75,000 in its 2017 I.S. for the year. What amt. of cash did Lance receive from its customers during the year ended Oct. 31 2017?
$70,000 (reported revenue 75,000+(5,000) increase in A/R)=$70,000
KungFu Co. had net income of $100,000 in 2016 and $150,000 in 2017. The co. paid $150,000 dividends during 2017. The following are some items from its comparative B.S.: 12/31/17 12/31/16 cash $180,000 $150,000 A/R 200,000 220,000 DTA(non-current) 100,000 50,000 A/P 80,000 160,000 DTL(current) 40,000 10,000 the amt. of net cash provided by op. act. during 2017 was:
$70,000 N.I. 150,000 A/R 20,000 -DTA (50,000) -A/P (80,000) DTL 30,000 _______________ CFO= $70,000
Kresley Co. has provided the following current account balances for the preparation of the annual statement of cash flows: Jan. 1 Dec. 31 A/R $11,500 $14,500 Allow. for Uncoll. accts 400 500 Prepaid rent expense 6,200 4,100 A/P 9,700 11,200 Kresley's current-year N.I. is $75,000. Net cash provided by op. act. in the statement of cash flows should be:
$75,700 N.I. 75,000 -A/R (3,000) Allow. of unc. acct 100 prepaid rent exp. 2,100 A/P 1,500 ____________________________________ =CFO $75,700
Nagel Co.'s prepaid insurance was $95,000 at Dec. 31 2017 and $45,000 at Dec. 32 2016. Insurance expense was $31,000 for 2017 and $27,000 for 2016. What amt. of cash disbursements for insurance would be reported in Nagel's 2017 net cash provided by operating activities presented on a direct basis?
$81,000 2017 prepaid insurance 95,000 insurance expense 31,000 - BOY prepaid insur. (45,000) _______________________________ =81,000
The following info. was taken from the acct. records of Gorky Corp. for the year ended December 31, 2017: proceeds from issuance of stock $5,000,000 dividends received on PS 60,000 acquired building (via 6M bond) 6,000,000 lease payments 1,000,000 int. expense on lease 800,000 G on sale of land (SP=2M;CV=1.6M) 400,000 The net cash flows from investing act. that should be reported on Gorky's statement of cash flows for the year ended December 31, 2017 is:
$2,000,000 cash rec. from sale of land 2,000,000 ______________________________________ CFI= $2,000,000
In 2017 Undercity Pest Control reported N.I. of $2,000. The firm's B.S. shows the following balances. 2017 2016 A/R $200 $300 Inv. 300 450 A/P 0 300 Lease Payable 1,000 1,200 *In addition, the firm reported a $300 loss on sale of PPE and $100 int. expense related to the lease. What is Undercity's 2017 cash from operations?
$2,250 N.I. 2,000 Loss on sale of land 300 Inv. 150 A/R 100 -A/P (300) ___________________________ =CFO $2,250
A company preparing its year-end CF statement is using indirect method. During the year, the following transactions occurred: dividends paid 300 proceeds from issue. CS 250 borrowings under line of CR 200 proceeds from issue. of conv. bonds 100 proceeds from building sale 150 What is the co.'s increase in CFs provided by FINN act. for the year?
$250 div. paid (300) proceeds from issue. CS 250 borrowings under line of CR 200 proceeds from issue. of conv. bonds 100 __________________________________________ CFF= $250
The following info. was taken from the acct. records of Gorky Corp. for the year ended December 31, 2017: proceeds from issuance of stock $5,000,000 dividends received on PS 60,000 acquired building (via 6M bond) 6,000,000 lease payments 1,000,000 int. expense on lease 800,000 G on sale of land (SP=2M;CV=1.6M) 400,000 Th net cash flows from FINN act. should be:
$4,800,000 proceeds from issuance of stock 5M -(lease paym.-int. on lease) (1M-.8M) _____________________________________________ CFF= $4,800,000
