As to accrual accounting, revenues (expenses) are recorded when
they occur not when cash is received...
As to accrual accounting, revenues (expenses) are recorded when
they occur not when cash is received (paid), that is the main
reason why profit is different from net cash flow from operating
activities. Then, how to reconcile a firm's net profit to its net
operating cash flow, and explain why?
1.
The financial statement that reports the revenues and expenses
for a period of time such...
1.
The financial statement that reports the revenues and expenses
for a period of time such as a year or a month is the
Balance Sheet
Income Statement
Statement Of Cash Flows
2.
The financial statement that reports the assets, liabilities,
and stockholders' (owner's) equity at a specific date is the
Balance Sheet
Income Statement
Statement Of Cash Flows
3.
Under the accrual basis of accounting, revenues are reported in
the accounting period when the
Cash Is Received
Service Or...
1. XYZ Corp. expects the following revenues, cash expenses, and
depreciation charges in the future:
Year...
1. XYZ Corp. expects the following revenues, cash expenses, and
depreciation charges in the future:
Year 1 2 3
Revenues $89,000 $106,000 $145,000
Cost of goods sold $38,000 $ 49,000 $53,000
Selling expenses $11,000 $ 13,000 $14,000
Interest expense $21,000 $ 23,000 $24,000
Interest revenue $7,000 $ 9,000 $11,000
Other cash operating expense$10,000 $ 11,000 $12,000
Depreciation $ 9,500 $ 13,500 $15,000
This business is in the 22 percent tax bracket. Please compute
the after-tax cash flows from operations for...
Cash Flows from Operating Activities—A method of reporting the
cash flows from operating activities as the...
Cash Flows from Operating Activities—A method of reporting the
cash flows from operating activities as the net income from
operations adjusted for all deferrals of past cash receipts and
payments and all accruals of expected future cash receipts and
payments.Indirect Method
The net income reported on the income statement for the current
year was $148,200. Depreciation recorded on store equipment for the
year amounted to $24,500. Balances of the current asset and current
liability accounts at the beginning and end...
Presented below is financial information for Sandhill Company.
Cash received from revenues from customers $16,000 Cash...
Presented below is financial information for Sandhill Company.
Cash received from revenues from customers $16,000 Cash received
from owner (investment) 5,000 Cash paid for new equipment 2,875
Cash paid to owner (drawings) 3,375 Cash paid for expenses 11,875
Cash balance, December 1, 2022 3,750 Prepare a statement of cash
flows for the month ended December 31, 2022. (Show amounts that
decrease cash flow with either a - sign e.g. -15,000 or in
parenthesis e.g. (15,000).)
A project will increase revenues by $45,000 but will increase
operating expenses by $15,000 and increase...
A project will increase revenues by $45,000 but will increase
operating expenses by $15,000 and increase depreciation by $5,000.
Assume that the tax rate is 30%. The net cash flows is____.
An asset that has a book of 6,500 could be sold for $8,000 at
the end of the project life. At the beginning of the project the
company invested $3,500 in net working capital. The tax rate is
40%. The net salvage value is___.
Financial analysts focus on ____...
1 Identify the correct components of the income statement.
revenues, losses, expenses, and gains
assets, liabilities,...
1 Identify the correct components of the income statement.
revenues, losses, expenses, and gains
assets, liabilities, and owner’s equity
revenues, expenses, investments by owners, distributions to
owners
assets, liabilities, and dividends
2. The balance sheet lists which of the following?
assets, liabilities, and owners’ equity
revenues, expenses, gains, and losses
assets, liabilities, and investments by owners
revenues, expenses, gains, and distributions to owners
3. The accounting equation is expressed as
________.
Assets + Liabilities = Owner’s Equity
Assets – Noncurrent Assets...