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.

Profi t Planning, SK 2 Chapter 10: Master budgeting Objective How organisat...

SK 2 Chapter 10: Master budgeting Objective How organisations strive to achieve their financial goals by preparing a number of budgets that together form an integrated business pla

Motives for holding cash, The firm's require holding cash may be attributed...

The firm's require holding cash may be attributed to the three motives specified below: The transaction motive The precautionary motive The speculative motive.

Traditional and activity based costing, Explain what is meant by traditiona...

Explain what is meant by traditional costing system. Support with example.

Bussiness.., #queThe following information pertains to Fairways Driving Ran...

#queThe following information pertains to Fairways Driving Range, Inc.: The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they

Methods of cash flow budgeting, Cash budget is a detailed budget of income ...

Cash budget is a detailed budget of income and cash expenditure including both capital and revenue items. For control reasons the year's budget is usually phased in smaller periods

Sales, Ask question #MinimumYears Purchase Costs Running cost discount fact...

Ask question #MinimumYears Purchase Costs Running cost discount factor 8% Running cost Savings PVS 0 -7000 -7000 1 2000 0.926 1852 5556 3704 2 2500 0.857 2142.5 5999 3856.5

Budget, advantage and disadvantage of incremental budget

advantage and disadvantage of incremental budget

Advantages of participatory budgets, Advantages of participatory budgets ...

Advantages of participatory budgets Information from employees most recognizable with each unit’s needs and constraints is included. Knowledge spread amongst numerous lev

PRATICAL PROBLEM, The standard cost of chemical mixture ~ PQ’ is as follows...

The standard cost of chemical mixture ~ PQ’ is as follows: 40% of material P @ Rs. 400 per kg. 60% of material Q @ Rs. 600 per kg. A standard loss of 10% is normally anticipated in

Capital budgeting, what is the computation procedure of accounting rate of ...

what is the computation procedure of accounting rate of return?

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