ACT 205 Chapter Notes - Chapter 1.3: Financial Accounting Standards Board, International Accounting Standards Board, Financial Statement

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skykangaroo617

28 Jan 2018

School

CSU

Department

Accounting

Course

ACT 205

Professor

Sally Plasterer Whitney

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Document Summary

Financial statement that measures activities involving cash receipts and cash payables over time. Cash receipts and payments for transactions involving revenue and expense activities during the period. Cash effects of the same activities reported in the income statement to calculate net income. Include cash transactions for the purchase and sale of investments and long-term assets. Resources owned by a company that are thought to provide benefits for more than one year. Cash transactions with lenders such as borrowing money and repaying debt, and with stockholders such as issuing stock and paying dividends. Change in cash = operating cash flows + investing cash flows + financing cash flows. *any transaction that affects the income statement ultimately affects the balance sheet through the balance of retained earnings. Formal document detailing company"s activities and final performance. Consists of: management"s discussion and analysis, note disclosures to the financial statements. Management views on significant events, trends, and uncertainties pertainingn to the company"s operations and resources.

Related Questions

Sorry about these values, this thing is kind of messed up. Ihope this can be understood.

The following is the Choco Companyâs balance sheet and incomestatement as of 12/31/2016.

Balance Sheet	2015	2016
Cash Accounts receivable Inventory Long-term investments Total assets Liabilities and stockholdersâ equity: (no value) Accounts payable Salary payable Bonds payable Common stock Retained earnings Total liabilities and stockholdersâ equity	$ 120,000 105,000 225,000 60,000 510,000 120,000 15,000 100,000 125,000 150,000 510,000	21,500 195,000 180,000 -0- 396,500 75,000 24,000 70,000 125,000 102,500 396,500
Income statement
Revenue:(no value) Sales Loss on sales of long-term investment Expenses: (no value) Cost of goods sold Salary expense Net income (loss)		560,000 (7,500) (375,000) (180,000) (2,500)

During 2016, following transactions were made:

Sold long-term investment for a loss of $7,500 (sold for$52,500).

$30,000 of bonds payable matured in 2016.

Paid cash dividends of $45,000.

What is the amount of cash inflow/outflow/ from their customers?(assume Sales are all credit sales)

What is the amount of cash inflow/outflow from the loss on thesales of long-term investment?

What is the amount of cash inflow/outflow from theirsuppliers?

What is the amount of cash inflow/outflow from theiremployees?

What is the amount of cash inflow/outflow from their long-terminvestment?

What is the amount of cash inflow/outflow regarding the maturityof their bonds payable?

What is the amount of cash inflow/outflow regarding the cashdividends?

Using the above balance sheet, income statement and informationfrom a to g, prepare the entire cash flow statement using thedirect method.

Choco Company Statement of Cash Flows For the year ended December 31, 2016
Cash flows from operating activities: Cash inflows: Cash outflows: Net cash flows from operating activities
Cash flows from investing activities: Net cash flows from investing activities
Cash flows from financing activities: Net cash flows from financing activities
Cash balance, 12/31/2016