Determine the cash flows from operating activities

Assignment Help Managerial Accounting
Reference no: EM132524028

Statement of Cash Flows Problem

Consider the following information in preparing a statement of cash flows for Huntsman Corp:

Beginning Cash Balance $16,000

Net Income $40,000

Depreciation Expense $24,000

Increase in Accounts Receivable $17,000

Decrease in Inventory $8,000

Decrease in Prepaid Expenses $4,000

Decrease in Accounts Payable $20,000

Increase in Accrued Liabilities $6,000

Decrease in Income Taxes Payable $3,000

During the year, Huntsman also had the following transactions:

  1. Made a $25,000 loan to Eccles Company
  2. Sold a piece of equipment with a cost of $30,000 and an accumulated depreciation of $20,000, for $15,000 cash.
  3. Had additional purchases of plant and equipment of $80,000
  4. Issued bonds payable for $50,000
  5. Issued common stock for $24,000
  6. Paid a cash dividend of $9,000

Required:

Question 1: Using the indirect method to determine the cash flows from operating activities, prepare a statement of cash flows for the year.

Reference no: EM132524028

Questions Cloud

Determine the cash flows from operating activities : Using the indirect method to determine the cash flows from operating activities, prepare a statement of cash flows for the year.
Calculate the annualized total return rate : Calculate the annualized total return rate of these two strategies assuming that the investor's anticipation is correct.
How much would outsourcing customer service increase profit : How much would outsourcing customer service increase profit? (Negative value for decrease in profit, give amount as a whole number.)
Prepare general journal entries to record the transactions : Prepare general journal entries to record the above transactions and the depreciation journal entries required at the end of each reporting period up to 30 June
Determine the cash flows from operating activities : Using the indirect method to determine the cash flows from operating activities, prepare a statement of cash flows for the year.
Explain to jas how trucks should be accounted for and why : Jas thinks the cost of the truck should be capitalized. Explain to Jas how the trucks should be accounted for and why
Prepare letter to mr anh vu : Prepare letter to Mr. Anh Vu (address: R. O1.307, International University, School of Business, Quarter 6, Linh Trung Ward, Thu Duc District)
Fortune based on the crackpot ideas : a) Should Nigel invest his fortune based on the crackpot's ideas?
What is the proper entry for this transition : Gomez company issues $9,000,000 of bonds with a coupon rate of 8%. What is the proper entry for this transition

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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