Support each classification with appropriate rationale., Managerial Accounting

Assignment Help:

For this assignment, please complete and submit Task 1 and Task 2 as described below.
Task 1: Classifying Cash Flows
The following are transactions, events, and changes in balances for Exeter Corporation for the past
fiscal year:
1. Repurchase of common stock.
2. Interest received.
3. Refund of income taxes.
4. Principal payment on long-term notes payable.
5. Cash paid to suppliers and employees.
6. Increase in accounts payable.
7. Purchase of property and equipment.
8. Proceeds from issuing a long-term note payable.
9. Cash paid as the result of a fine.
10. Principal payments under capital lease obligations.
11. Depreciation expense.
12. Payment of dividends on preferred stock.
13. Principal payments on mortgages.
14. Increase in accounts receivable.
15. Gain on sale of equipment.
16. Proceeds from issuing common stock.
17. Decrease in wages payable.
18. Declaration of a stock dividend.
19. Cash paid to suppliers for inventory.
20. Issuance of treasury stock for cash.
21. Loans to officers.
22. Issuance of common stock for land.
23. Proceeds from the sale of property, plant, and equipment.
24. Cash received from customers.
25. Decrease in prepaid insurance.
Classify each of the above using one of the following categories. Assume the operating portion of the
statement of cash flows is prepared on a direct basis.

i. Cash in?ow from operating activities.
ii. Cash out?ow from operating activities. iii. Cash in?ow from investing activities.
iv. Cash out?ow from investing activities.
v. Cash in?ow from ?nancing activities.
vi. Cash out?ow from ?nancing activities.
vii. Does not appear in the operating portion of a statement of cash ?ows prepared on a direct
basis.


Support each classification with appropriate rationale.

 

Task 2: Classifying Cash Flows, Indirect Method
The following are line items that could be found in a statement of cash ?ows.
1. Repurchase of common stock.
2. Interest received.
3. Refund of income taxes.
4. Principal payment on long-term notes payable.
5. Cash paid to suppliers and employees.
6. Increase in accounts payable.
7. Purchase of property and equipment.
8. Proceeds from issuing a long-term note payable.
9. Cash paid for taxes.
10. Principal payments under capital lease obligations.
11. Depreciation expense.
12. Payment of dividends on preferred stock.
13. Principal payments on mortgages.
14. Increase in accounts receivable.
15. Gain on sale of equipment.
16. Proceeds from issuing common stock.
17. Decrease in wages payable.
18. Declaration of a stock dividend.
19. Cash paid to suppliers for inventory.
20. Issuance of treasury stock for cash.
21. Long-term loans to of?cers.
22. Issuance of common stock for land.
23. Proceeds from the sale of property, plant, and equipment.
24. Cash received from customers.
25. Decrease in prepaid insurance.
Classify each of the items as one of the following, assuming the operating portion of the statement of
cash ?ows is prepared on an indirect basis.
i. Cash in?ow from operating activities.
ii. Cash out?ow from operating activities.
iii. Cash in?ow from investing activities.
iv. Cash out?ow from investing activities.
v. Cash in?ow from ?nancing activities.
vi. Cash out?ow from ?nancing activities.
vii. Positive adjustment to net income.
viii. Negative adjustment to net income.
ix. Does not appear in the operating portion of the statement of cash ?ows prepared on an
indirect basis.
x. Non-cash transaction.
Support each classification with appropriate rationale.

 


Related Discussions:- Support each classification with appropriate rationale.

Control-role of management accountant , Control Control includes a ...

Control Control includes a comparison of actual performance with the plan so that deviation from the plan can be identified and corrective action taken. It can be define

Explain briefly about life cycle costing, LIFE CYCLE COSTING Introduc...

LIFE CYCLE COSTING Introduction Life cycle costing as its name implies costs the cost object i.e., product project etc. over its projected life. It is used to explain a s

How can improvement in product design - cost reduction, Improvement in prod...

Improvement in product design may result in cost reduction illustrated below: 1) Material cost : change in design of the product may result in saving in material cost. Economi

Theory of metagames, THEORY OF METAGAMES This theory appears to describ...

THEORY OF METAGAMES This theory appears to describe how most people play non-zero sum games involving any number of persons. Prisoner's dilemma is an example of this; the ai

Application of transportation model, Application of Transportation Model ...

Application of Transportation Model In the direct logic, the transportation model looks for the determination of a transportation plan of a particular commodity from a number o

Compute the effect of relaxing credit effort on net profit, M/s ABC is seei...

M/s ABC is seeing relaxing its collection efforts. At current its sales are as Rs.40 lakhs, the ACP is here 20 days and variable cost to sales ratio is .8 and bad debts are as .05

Marginal costing technique, how company apply marginal costing techniques s...

how company apply marginal costing techniques show with an example

Explain the characteristics of cost reduction, Characteristics of cost redu...

Characteristics of cost reduction 1) Cost reduction must be real : said through increase in productivity change in product design improvement in technology etc. 2) Cost r

Battle of the sexes game, Battle of the Sexes game To understand Battle...

Battle of the Sexes game To understand Battle of the Sexes game, let’s consider a story as follows: Two players (a couple) wish to go to an event together but disagree about

Help, Jackson County Senior Services is a nonprofit organization devoted to...

Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three serv

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd