Question
Analyzing Cash Flow Ratios Molly Enterprises reported the following information for the past year of operations:...
Analyzing Cash Flow Ratios
Molly Enterprises reported the following information for the past
year of operations:
For each transaction, indicate whether the ratio will Increase,
Decrease, or have No Effect.
Transaction |
Free Cash Flow $250,000 |
Operating-Cash-Flow-to- Current Liabilities Ratio 1.0 times |
Operating-Cash-Flow-to- Capital Expenditures Ratio 3.0 times |
|---|---|---|---|
| a. Recorded credit sales of $8,000 | AnswerIncreaseDecreaseNo Effect | AnswerIncreaseDecreaseNo Effect | AnswerIncreaseDecreaseNo Effect |
| b. Collected $8,000 owed from customers | AnswerIncreaseDecreaseNo Effect | AnswerIncreaseDecreaseNo Effect | AnswerIncreaseDecreaseNo Effect |
| c. Purchased $23,000 of equipment on long-term credit | AnswerIncreaseDecreaseNo Effect | AnswerIncreaseDecreaseNo Effect | AnswerIncreaseDecreaseNo Effect |
| d. Purchased $18,000 of equipment for cash | AnswerIncreaseDecreaseNo Effect | AnswerIncreaseDecreaseNo Effect | AnswerIncreaseDecreaseNo Effect |
| e. Paid $7,000 of wages with cash | AnswerIncreaseDecreaseNo Effect | AnswerIncreaseDecreaseNo Effect | AnswerIncreaseDecreaseNo Effect |
| f. Recorded utility bill of $4,500 that has not been paid | AnswerIncreaseDecreaseNo Effect | AnswerIncreaseDecreaseNo Effect | AnswerIncreaseDecreaseNo Effect |
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
Analyzing Cash Flow Ratios Pearce Enterprises reported the following information for the past year of operations:...
Analyzing Cash Flow Ratios Pearce Enterprises reported the
following information for the past
year of operations:
Transaction
Free
Cash Flow
$250,000
Operating-Cash-
Flow-to-Current-
Liabilities Ratio
1.0 times
Operating-Cash-
Flow-to-Capital-
Expenditures
Ratio
3.0 times
a.
Recorded credit sales of $9,000
b.
Collected $4,000 owed from customers
c.
Purchased $28,000 of equipment on
long-term credit
d.
Purchased $16,000 of equipment for
cash
e.
Paid $10,000 of wages with cash
f.
Recorded utility bill of $1,750 that has
not been paid
For each...
Use the following information from Cersie Company to create the Cash Flow from Operations Section of...
Use the following information from Cersie Company to create the
Cash Flow from Operations Section of the Cash Flow Statement using
the indirect method. Note: You may not have sufficient information
to prepare a complete cash flow statement but you do have enough to
do just the Cash Flow from Operations section.
Cersei Company
Income Statement
For the Year Ended December 31, 2019
Net Sales Revenue
$325,000
Cost of Goods Sold
222,000
Gross Profit
$103,000
Operating Expenses:
Selling Expenses
Commission...
(Transaction effects on ratios) Two lists follow: one for ratios (including the ratio prior to the...
(Transaction effects on ratios)
Two lists follow: one for ratios (including the ratio prior to the
transactions) and another for transactions.
Ratios:
1.
Current ratio, 1.9:1
2.
Quick ratio, 0.8:1
3.
Accounts receivable turnover, 10.6 times
4.
Inventory turnover, 7.8 times
5.
Return on assets, 12%
6.
Profit margin, 10.4%
Transactions:
a.
Goods costing $360,000 are sold to customers for $480,000 in
cash.
b.
Accounts receivable of $130,000 are collected.
c.
Inventory costing $80,000 is purchased from suppliers on
credit....
Basic Financial Ratios The accounting staff of CCB Enterprises has completed the financial statements for the...
Basic Financial Ratios
The accounting staff of CCB Enterprises has completed the
financial statements for the 2017 calendar year. The statement of
income for the current year and the comparative statements of
financial position for 2017 and 2016 follow.
CCB Enterprises
Statement of Income
For the Year Ended December 31,
2017
(thousands omitted)
Revenue:
Net sales
$800,000
Other
60,000
Total
revenue
$860,000
Expenses:
Cost of goods sold
$540,000
Research and development
25,000
Selling and administrative
155,000
Interest
20,000
Total
expenses...
1. Cash Flows from Operating Activities—Indirect Method Staley Inc. reported the following data: Net income $283,600...
1.
Cash Flows from Operating Activities—Indirect Method
Staley Inc. reported the following data:
Net income
$283,600
Depreciation expense
61,800
Loss on disposal of equipment
25,900
Increase in accounts receivable
18,000
Increase in accounts payable
11,800
Prepare the Cash Flows from Operating Activities section of the
statement of cash flows, using the indirect method. Use the minus
sign to indicate cash outflows, cash payments, decreases in cash,
or any negative adjustments.
Staley Inc.
Statement of Cash Flows (partial)
Cash flows from...
P3-7 (Algo) Recording Journal Entries and Identifying Cash Flow Effects LO3-4, 3-7 [The following information applies...
P3-7 (Algo) Recording Journal Entries and Identifying Cash Flow
Effects LO3-4, 3-7
[The following information applies to the questions
displayed below.]
Pine Fair, L.P. (Limited Partnership), is one of the largest
regional amusement park operators in the world, owning 11 amusement
parks, two water parks, and four hotels. The parks include Pine
Point in Ohio; Valleyfair near Minneapolis/St. Paul; Dorney Park
and Wildwater Kingdom near Allentown, Pennsylvania; Worlds of Fun
in Kansas City; Great America in Santa Clara, California; and...
Using the following information find the ratios listed: Hamilton Company Comparative Balance Sheets December 31, 2014...
Using the following information find the ratios listed:
Hamilton Company
Comparative Balance Sheets
December 31, 2014 and December 31, 2015
Assets
2014
2015
Difference
Cash
15,000
47,000
32,000
Accounts Receivable
55,000
47,000
(8,000)
Inventory
110,000
144,000
34,000
Prepaid Expenses
5,000
1,000
(4,000)
Long term investments
127,000
115,000
(12,000)
Land
55,000
55,000
-
Building
450,000
660,000
210,000
Accumulated Depr -...
Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations:...
Hart, Attorney at Law, experienced the following transactions in
Year 1, the first year of operations:
Accepted $19,000 on April 1, Year 1, as a retainer for services
to be performed evenly over the next 12 months.
Performed legal services for cash of $69,000.
Purchased $1,150 of office supplies on account.
Paid $1,035 of the amount due on accounts payable.
Paid a cash dividend to the stockholders of $5,200.
Paid cash for operating expenses of $18,000.
Determined that at the...
A) On December 31, 2017, Pack-N-Deliver Company completed its first year of operations. The following information...
A) On December 31, 2017, Pack-N-Deliver Company completed its
first year of operations. The following information has been
provided for the year:
a. Sold packing supplies for $30,000 and provided $280,000 of
delivery services.
b. All packing supplies sales were for cash.
c. Collected $212,000 of delivery service revenue.
d. Paid $15,000 cash to rent packing equipment, with $10,000 for
rental in 2019 and the remaining amount for rental in 2020.
e. Spent $4,000 cash to repair delivery equipment during...
Basic Financial Ratios The accounting staff of CCB Enterprises has completed the financial statements for the...
Basic Financial Ratios
The accounting staff of CCB Enterprises has completed the
financial statements for the 2017 calendar year. The statement of
income for the current year and the comparative statements of
financial position for 2017 and 2016 follow.
CCB Enterprises
Statement of Income
For the Year Ended December 31,
2017
(thousands omitted)
Revenue:
Net sales
$800,000
Other
60,000
Total
revenue
$860,000
Expenses:
Cost of goods sold
$540,000
Research and development
25,000
Selling and administrative
155,000
Interest
20,000
Total
expenses...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 4 minutes ago
asked 19 minutes ago
asked 23 minutes ago
asked 30 minutes ago
asked 35 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago
asked 2 hours ago