Below is the balance sheet for a limestone producer called Bedrock Construction, Inc. Construct its cash...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Below is the balance sheet for a limestone producer called Bedrock Construction, Inc. Construct its cash flow statement for 2020, breaking the statement into operating cash flows, investing cash flows, and financing cash flows. The firm made a push during the year to collect on receivables sooner and to pay its own bills more slowly. Would you lend to this firm? Why or why not? Balance Sheet Assets Cash Marketable securities Accounts receivable Inventory Current assets Gross fixed assets Less: Accum. Depreciation Net fixed assets Other assets Total assets 12/31/2019 Note: Dividends poid in the year 2020 Cash Flow from Operations Net income Depreciation expense Change in accounts receivable Change in inventories Change in accounts payable Change in taxes payable Change in other assets Net cash flow from operations 2.0 0.7 6.1 3.2 12.0 9.4 1.0 8.4 14 21.8 12/31/2020 2.3 0.2 5.4 3.3 11.2 11.8 2.0 9.8 1.2 22.2 0.4 Liabilities Accounts payable Notes payable Taxes payable Current liabilities Long-term debt obligations Other liabilities Total liabilities Common stock and surplus Retained earnings Total liabilities and net worth Cash Flow from Investments Change in Marketable securities Investment in foxed assets Net cash flow from investments Cash Flow from Financing Change in notes payable Change in long-term debt Change in other liabilties Change in stock and surplus Dividends paid Net cash flow from financing Increase in cash for the year 12/31/2019 12/31/2020 2.2 2.8 3.1 2.5 0.4 0.4 5.7 5.7 9.0 0.0 14.7 4.0 3.1 21.8 10.5 00 16.2 4.0 2.0 22.2 Below is the balance sheet for a limestone producer called Bedrock Construction, Inc. Construct its cash flow statement for 2020, breaking the statement into operating cash flows, investing cash flows, and financing cash flows. The firm made a push during the year to collect on receivables sooner and to pay its own bills more slowly. Would you lend to this firm? Why or why not? Balance Sheet Assets Cash Marketable securities Accounts receivable Inventory Current assets Gross fixed assets Less: Accum. Depreciation Net fixed assets Other assets Total assets 12/31/2019 Note: Dividends poid in the year 2020 Cash Flow from Operations Net income Depreciation expense Change in accounts receivable Change in inventories Change in accounts payable Change in taxes payable Change in other assets Net cash flow from operations 2.0 0.7 6.1 3.2 12.0 9.4 1.0 8.4 14 21.8 12/31/2020 2.3 0.2 5.4 3.3 11.2 11.8 2.0 9.8 1.2 22.2 0.4 Liabilities Accounts payable Notes payable Taxes payable Current liabilities Long-term debt obligations Other liabilities Total liabilities Common stock and surplus Retained earnings Total liabilities and net worth Cash Flow from Investments Change in Marketable securities Investment in foxed assets Net cash flow from investments Cash Flow from Financing Change in notes payable Change in long-term debt Change in other liabilties Change in stock and surplus Dividends paid Net cash flow from financing Increase in cash for the year 12/31/2019 12/31/2020 2.2 2.8 3.1 2.5 0.4 0.4 5.7 5.7 9.0 0.0 14.7 4.0 3.1 21.8 10.5 00 16.2 4.0 2.0 22.2
Expert Answer:
Answer rating: 100% (QA)
To construct the cash flow statement for Bedrock Construction Inc for the year 2020 we need to analyze the changes in various accounts from the balanc... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney
Posted Date:
Students also viewed these finance questions
-
The Smokatorium Company has announced the following financial information for the period ending October 31, 2020: sales of $1.4 million, cost of goods sold of $800,000, depreciation expenses of...
-
The growth models predict that GDP per capita of poor countries will grow more rapidly than in rich countries. GDP per capita of rich countries will grow more rapidly than in poor countries....
-
How do complementary assets and social complexity influence a firm's organization?
-
Similarly, modify your form.html page from Exercise 5.2 to use variables. This will require a separate variable for each of the text boxes in the page. Once the contents of each of the boxes are...
-
Look at the following classes: Public class Ground { Public Ground() { System.out.println("You are on the ground."); } } Public class Sky extends Ground { Public Sky() { System.out.println("You are...
-
Kimberley, Kerry and Kevin, partners trading as Triple K Traders have a partnership deed which includes the following provisions. 1. Salaries are to be allowed: Kimberley, \($54000;\) Kerry,...
-
An orifice meter (see Figure 3.2-1) is to be calibrated for the measurement of the flow rate of a stream of liquid acetone. The differential manometer fluid has a specific gravity of 1.10. The...
-
One key limitation of Sage 50 Accounting software, while there is a Sage 50 cloud version that offers some cloud-based features, the mobile access and functionality may not be as extensive as with...
-
Complete Tsate's Form 1040-SR, Schedules A, B and D, Form 8949, Form 6252 and Qualified Dividends and Capital Gain Tax Worksheet. Tsate Kongia (birthdate 02/14/1954) is an unmarried high school...
-
Keeping the risk return trade off in mind, which of the following investments is clearly preferred over the others for a risk averse investor? Investment Mean return Standard Deviation A 18% 20% B...
-
Jackson have listed a series of fictitious financials problems, discussed on a period of major financial reporting issues, then triggered to new regulations on SOX (2002), on Dodd-Frank Act (2010)....
-
What kind of measure is Statistics Canadas low-income measure (LIM-AT)?
-
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price per unit Variable expense per unit Fixed expense per...
-
Mr Johnson Junior is an employee of Temidire Ltd . His salary is N 5 , 0 0 0 , 0 0 0 per annum. He is married with five children. The first two are from his first wife and the remaining from the...
-
Outline the specific functions provided by MYOB software. Discuss the problems of using a manual accounting system. Outline the benefits of using an online accounting software tool. Discuss three...
-
MC Packaging Limited (MC") makes aluminum cans for the food processing industry. It produces the cans in three different sizes according to capacity: small, medium and large. The following details...
-
The graph of an equation is given. (a) Find the intercepts. (b) Indicate whether the graph is symmetric with respect to the x-axis, the y-axis, or the origin. -3 6 -6 3 x
-
The Coca Cola Company (Coca-Cola), like PepsiCo, manufactures and markets a variety of beverages. Exhibit 3.15 presents a statement of cash flows for Coca-Cola for Year 0 to Year 4. Required Discuss...
-
INTERCO is a manufacturer and retailer of a broad line of consumer products, including London Fog, Florsheim Shoes, Converse, Ethan Allen Furniture, and Lane Furniture. During Year 9, INTERCO became...
-
Prior to Year 8, General Dynamics Corporation engaged in a wide variety of industries, including weapons manufacturing under government contracts, information technologies, commercial aircraft...
-
An antiferromagnet is characterized by the fact that the exchange integral \(J\) is negative, which tends to align neighboring spins antiparallel to one another. Assume that a given lattice structure...
-
The Nel temperature \(T_{N}\) of an antiferromagnet is defined as that temperature below which the sublattices \(a\) and \(b\) possess nonzero spontaneous magnetizations \(M_{a}\) and \(M_{b}\),...
-
Modify the Bragg-Williams approximation (12.5.29) to include a short-range order parameter \(s\), such that \[\begin{aligned}& \bar{N}_{++}=\frac{1}{2} q N \gamma\left(\frac{1+\bar{L}}{2}...
Study smarter with the SolutionInn App