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.

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

Quadratic loss function, Consider the following quality data for three diff...

Consider the following quality data for three different manufacturers of automobile weather-strips: Weather-strip Bulb Dimension Specification y=20 +or- 4mm

Explain the techniques of performance budgeting, Explain the techniques of ...

Explain the techniques of performance budgeting It will also be useful to examine the three major aspects of this technique: Structural aspects : the structural aspects inv

Bench marking, BENCH MARKING In the current business environment, organ...

BENCH MARKING In the current business environment, organizations are under a lot of pressure to improve performance and that of their divisions or subsidiaries. Bench marking i

Investments carried as trading securities, a)    Does Ford report any inves...

a)    Does Ford report any investments carried as trading securities, available-for-sale securities, or held-to-maturity securities? If so, go over their significance to both the b

Simple queues, Simple Queues A simple queue has the following character...

Simple Queues A simple queue has the following characteristics; 1) There is a simple service channel 2) There are ‘discrete’ customers e.g. customers in a bank, or aircra

Jit and management accounting , JIT and Management Accounting Manageme...

JIT and Management Accounting Management accountants in many organizations have been criticized because of their failure to change their managing accounting system to reflect

Cash and treasury management, Cash is a significant current asset for the o...

Cash is a significant current asset for the operations of business. Cash is the fundamental input that maintains business running smoothly and continuously. In excess of cash and l

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