General-purpose financial statements include the (1) income statement, (2) balance sheet, (3) statement of stockholders’ equity (or statement of retained earnings), (4) statement of cash flows, and (5) notes to these statements.
In preparing a company’s statement of cash flows for the mos…
In preparing a company’s statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was $ 52,000 Accounts payable increased by 18,000 Accounts receivable decreased by 25,000 Inventories decreased by 5,000 Cash dividends paid were 14,000 Depreciation expense was 20,000 Net cash provided by operating activities was:
Refer to the following selected financial information from C…
Refer to the following selected financial information from Cape Town, LLC. Compute the company’s days’ sales uncollected for Year 2. (Use 365 days a year.) Year 2 Year 1 Cash $ 37,500 $ 36,850 Short-term investments 90,000 90,000 Accounts receivable, net 85,500 86,250 Merchandise inventory 121,000 117,000 Prepaid expenses 12,100 13,500 Plant assets 388,000 392,000 Accounts payable 113,400 111,750 Net sales 711,000 706,000 Cost of goods sold 390,000 385,500
Working capital is computed as current liabilities minus cur…
Working capital is computed as current liabilities minus current assets.
A potential lawsuit claim is disclosed when the claim can be…
A potential lawsuit claim is disclosed when the claim can be reasonably estimated and it is reasonably possible.
Owners of a corporation are called shareholders or stockhold…
Owners of a corporation are called shareholders or stockholders.
A customer’s promise to pay on credit is classified as an ac…
A customer’s promise to pay on credit is classified as an account payable by the seller.
Managers only use the cash flow statement to evaluate the ne…
Managers only use the cash flow statement to evaluate the net cash increase or decrease, and do not pay much attention to the details of cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.
Analysis reveals that a company had a net increase in cash o…
Analysis reveals that a company had a net increase in cash of $20,000 for the current year. Net cash provided by operating activities was $18,000; net cash used in investing activities was $10,000 and net cash provided by financing activities was $12,000. If the year-end cash balance is $24,000, the beginning cash balance was:
A financial statement providing information that helps users…
A financial statement providing information that helps users understand a company’s financial status, and which lists the types and amounts of assets, liabilities, and equity as of a specific date, is called a(n):