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.

Decision making, A local government authority owns and operates a leisure c...

A local government authority owns and operates a leisure centre with numerous sporting facilities, residential accommodation, a cafeteria and a sports shop. The summer season lasts

Treasury management, Treasury management is explained as "the corporate han...

Treasury management is explained as "the corporate handling of all financial matters, the production of external and internal funds for business, the management of cash flows and c

Explian national income and economic welfare, Question 1: (a) Discuss t...

Question 1: (a) Discuss the main features and problems which Mauritius has to face as a small island developing country. (b) What are the factors which have led to the f

Breakeven analysis, I am part of a marketing group, and we are working on a...

I am part of a marketing group, and we are working on a project for a local cable company,they currently serve 3,200 customers and sell 50 wireless boxes a month,what I need to do

Credit limit, Credit Limit A credit restriction is the maximum amount o...

Credit Limit A credit restriction is the maximum amount of credit that the firm will extend at a point of time. This indicates the extent of risk taken through the firm through

Explain activity based costing versus traditional costing, Activity based c...

Activity based costing versus traditional costing Following are the main differences between activity based costing system and traditional costing system: Explain  1) Und

Managerial accounting, As an MBA Managerial Accounting Student, John has as...

As an MBA Managerial Accounting Student, John has asked you to evaluate the alternatives available and make recommendations as to the best course of action, and present it in a Rep

Balanced score card, Balanced Score Card This is a popular approach in ...

Balanced Score Card This is a popular approach in current management thinking which consists of a variety of indicators both financial and non-financial. The balanced scorecard

Explain the investment versus speculation, Explain the Investment versus Sp...

Explain the Investment versus Speculation? In brief describes the following terms: a) Investment versus Speculation. b) Active and Passive Equity Management c) Systematic v

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