Solution-Alfonza incorporated presents its statement of

Alfonza incorporated presents its statement of cash flows

Assignment Help Managerial Accounting

Reference no: EM13918392

Alfonza Incorporated presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from the company's 2014 and 2013 year end balance sheets:

1003_264-B-M-A-S-C-F (2001).png

The 2014 income statement showed net income of $31.600.

Required:

a. Prepare the operating activities section of the statement of cash flows.
b. Explain why the change in the balance in accounts receivable was added to or subtracted from the amount of net income when you completed Requirement a.
c. Explain why the change in the balance in accounts payable was added to or subtracted from the amount of net income hen you completed Requirement a.

Reference no: EM13918392

Questions Cloud

Straight-line method of depreciation : Caterpillars Inc., a manufacturing company, acquired equipment on January 1, 2012 for $500,000. Estimated useful life of the equipment was 7 years and the estimated residual value was $10,000. On January 1, 2015, after using the equipment for 3 years..

Considering a project with the cash flows : Southeast Compositions, Inc. is considering a project with the following cash flows: Compute the net present value of this project if the company's discount rate is 14%. Sentry Manufacturing paid a dividend yesterday of $5 per share. The dividend is ..

Face value commercial paper : The price of $8000 face value commercial paper is $7930 . if the annualized discount rate 4% when will the paper mature ? if the annualized investment rate % is 4% , when the paper mature

Double-declining-balance method of depreciation : The cost of an asset is $1,000,000 and its residual value is $100,000. Estimated useful life of the asset is four years. Calculate depreciation for the second year using the double-declining-balance method of depreciation.

Alfonza incorporated presents its statement of cash flows : Alfonza Incorporated presents its statement of cash flows using the indirect method.

Determine the effective annual yield you achieved : You purchase a 30-year 8% annual coupon bond with a face value of 1000, at a yield rate of 9%. The bond is a callable corporate bond, with a call price of 1,050, and can be called by the issuing corporation after five years. Immediately after the 9th..

Investment under the equity method : Prepare the correcting entry required on December 31, 20X8, to properly report the investment under the equity method, assuming the books have not been closed. Case Products' dividends were declared in early November and paid in early December each y..

Two mutually exclusive projects : Lithium, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 ..

Profit margins and turnover ratios : Profit margins and turnover ratios vary from one industry to another. What differences would you expect to find between a grocery chain such as Safeway and a steel company? Think particularly about the turnover ratios, the profit margin, and the Du P..

User Account

All Pages

Alfonza incorporated presents its statement of cash flows

Reference no: EM13918392

Reference no: EM13918392

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT