Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Ron Nord and Lisa Smith are examining the following statement of cash flowsfor Carpino Company for the year ended January 31, 2007.
CARPINO COMPANY
Statement of Cash Flows
For the Year Ended January 31, 2007
Sources of cash
From sales of merchandise
$380,000
From sale of capital stock
420,000
From sale of investment (purchased below)
80,000
From depreciation
55,000
From issuance of note for truck
20,000
From interest on investments
6,000
Total sources of cash
961,000
Uses of cash
For purchase of fixtures and equipment
330,000
For merchandise purchased for resale
258,000
For operating expense (including depreciation)
160,000
For purchase of investment
75,000
For purchase of truck by issuance of note
For purchase of treasury stock
10,000
For interest on note payable
3,000
Total uses of cash
856,000
Net increase in cash
$105,000
Ron claims that Carpino's statement of cash flows is an excellent portrayal of a superbfirst year with cash increasing $105,000. Lisa replies that it was not a superb first year.Rather, she says, the year was an operating failure, that the statement is presented incorrectly,and that $105,000 is not the actual increase in cash. The cash balance at thebeginning of the year was $140,000.
Instructions
With the class divided into groups, answer the following.
(a) Using the data provided, prepare a statement of cash flows in proper form using the indirect method. The only noncash items in the income statement are depreciation and the gain from the sale of the investment.
(b) With whom do you agree, Ron or Lisa? Explain your position.
The focus of management accounting over time has changed. Which is the correct historical order for the foci
This is my situation, I own a used car lot, I sold and report to Department of Revenue in sales the amount of $720.000 dollars.
The company has the option of making and buying at the same time. What would be your answer to No.3 if this alternative were considered? Show calculations to support your answer. Should the Watson Corporation make or buy the bindings? Show calcul..
the charter for kcas-tv inc. authorizes the company to issue 100000 shares of 4 no-par preferred stock and 500000
Activity in your organization where you can apply breakeven analysis. The organizations I chose is Best Buy
the project is on retail storeuse the cost objects and management method that were before defined in the project to
computing cost of usagenbsp per customer using the data given.calumet inc is investigating its phone ordering costs and
Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 400 units. Illustrate what should be the overall effect on the company's monthly net operating incom..
They ask for a full explanation of the service to be provided and to explain how the cost of the audit is determined. Can your help by sending an example of this type of memorandun?
Discuss the impact that other factors might have. For example, would increasing the quantity of inventory increase costs? Would a salary cut affect employee morale? Would decreased morale affect sales?
Variance between budget projections and budget performance is inevitable. Elucidate whether or not a proactive application of cost measurement and corrective actions are a realistic approach to minimize variance.
During the year, Accounts Receivable decreased from $88,000 to 78,000, a decrease of $10,000. Illustrate what amount of cash did Lab Commercial Products receive from customers during 2010?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd