Reference no: EM132576170
Davis Corporation, LLC Statement of ('ash lions ($ million) Year Ending December 31, 20x9
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Operating Activities
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Net income
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$42
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Plus depreciation
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30
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Less increase in accounts receivables
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(5)
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Less increase in inventories
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(33)
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Plus increase in accounts payable
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I
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Cash flows from operations
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S35
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Investment Activities
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Less increase in gross fixed assets
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($39)
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Financing Activities
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Decrease in short-term notes
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(2)
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Increase in long-term debt
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I I
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Issued new common stock in par value and additional paid in capital
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4
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Less dividends paid to owners
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1101
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Financing cash flows
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SI
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Decrease in cash
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(SI)
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Beginning cash
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21
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Ending cash
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S20
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Question 1. What accounting events trigger changes to the retained earnings account?
Question 2. Explains the differences between cash flows from operating, financing and investment activities. It takes as a basis the state of cash flows presented.
Question 3. If a company increases its accounts payable compared to the previous year, what will be the effect on the cash account?
Question 4. do increases in fixed assets from one period to the next affect the cash account?
Question 5. Mention at least three working capital accounts representing sources of cash for the firm and the changes the financial manager would have to make to those accounts to improve the cash account for the next signing closing period.
Question 6. What does "decrease in short-term notes" mean in the financial statement of Davis Corporation, LLC and how does it affect the cash balance at the end of the period?
Question 7. From Davis Corporation,LLC's cash flow statement, he discusses what may have caused the biggest change in the position of the company's cash flows for the 20x9 compared to the previous year.