The accounting records of Best Pharmaceuticals, Inc., reveal the following: Requirement 1. Compute cash flows from operating
Question:
Requirement
1. Compute cash flows from operating activities by the direct method. Also evaluate Bests operating cash flow. Give the reason for yourevaluation.
Transcribed Image Text:
$40,000 16,000 Payment of salaries Net income d wages....$ $32,000 Payment of income tax 23,000 Collection of dividend Depreciati Decrease in current 12,000 18,000 Payment of interest20,000 55,000 7,000 25,000 liabilities Increase in current assets Cash other than cash... 21,000 Gain on sale of land . Payment of dividends Collection of accounts Acquisition of land Payment of accounts payable 9,000 receivabie. 95,000 50,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 55% (9 reviews)
Cash flows from operating activities Receipts Collections from customers 95000 55000 ...View the full answer
Answered By
Mary Boke
As an online tutor with over seven years of experience and a PhD in Education, I have had the opportunity to work with a wide range of students from diverse backgrounds. My experience in education has allowed me to develop a deep understanding of how students learn and the various approaches that can be used to facilitate their learning. I believe in creating a positive and inclusive learning environment that encourages students to ask questions and engage with the material. I work closely with my students to understand their individual learning styles, strengths, and challenges to tailor my approach accordingly. I also place a strong emphasis on building strong relationships with my students, which fosters trust and creates a supportive learning environment. Overall, my goal as an online tutor is to help students achieve their academic goals and develop a lifelong love of learning. I believe that education is a transformative experience that has the power to change lives, and I am committed to helping my students realize their full potential.
5.00+
4+ Reviews
22+ Question Solved
Related Book For
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
Question Posted:
Students also viewed these Managerial Accounting questions
-
Compute cash flows from operating activities for Edwards Company under the indirect reporting format. Edwards Company provided you with the following information for the current year. Accounts...
-
5. Paul borrows $136 000. He agrees to make monthly payments for the next 20 years. The interest rate being charged is 6.6% /a compounded monthly. How much will Paul have to pay each month? How much...
-
Compute cash flows from operating activities for Edwards Company under the indirect reporting format. Edwards Company provided you with the following information for the current year. Accounts...
-
Staircase Equipment Company uses a job order cost system. The following data summarize the operations related to production for April 2014, the first month of operations: Materials purchased on...
-
Refer to Exercise 11-13 and the system shown in Figure 11-10. Suppose that component B is a standby component. Find the reliability of the system after 1000 hours. What is the mean time to failure? D.
-
Which of the series defined by the formulas converge, and which diverge? Give reasons for your answers. x n=10n
-
Discuss the following issues relating to criticism of conventional accounting. 1 Conventional accounting uses the accrual convention.What is the accrual convention? What is the main benefit of...
-
On January 1, 2014, the Vasquez Company ledger shows Equipment $32,000 and Accumulated Depreciation-Equipment $9,000. The depreciation resulted from using the straight-line method with a useful life...
-
Find the quotient Z1 - of the complex numbers. Leave your answer in polar form. Express the argument as an angle Z2 between 0 and 360. Z1 = cos 90 + i sin 90 Z = cos 230 + i sin 230 Z1 = COS Z2 O + i...
-
This part would help you to reinforce your understanding of the Little's Law. We have a hypothetical situation where customers arrived at a line, got their paperwork checked, and exited the line. In...
-
Compute the following items for the statement of cash flows: a. Beginning and ending Plant Assets, Net, are $99,000 and $92,000, respectively. Depreciation for the period was $11,000, and purchases...
-
Selected accounts of Jessie Antiques show the following: Requirement For each account, identify the item or items that should appear on a statement of cash flows prepared by the direct method. State...
-
Some properties of neoplastic cells are the same as the properties of normal cells, including a. Anaplasia. b. Metastasis. c. Mitosis. d. Autonomy.
-
If the graph of f is as shown below, then the graph of y = 2+ f(x) Y A 0 2 1 B ++ +1 4 5 6 7 8 TWO OF THESE CHOICES MAKE SENSE! 2 3 (A) is concave downward in the interval (2, 6) (B) is concave...
-
b) Rani is a visually impaired man since born. He uses a walking stick as shown in Figure 2 to help him navigate in public spaces. Figure 2: Walking stick While the walking stick is very helpful to...
-
How do banks conduct credit risk analysis for corporate borrowers, and what qualitative and quantitative factors are most critical in determining creditworthiness?
-
You are trying to balance a tray of dishes to make it easy to carry. At one end of the 0.4 m tray are four plates with total mass 0.8 kg with their centers of mass exactly above the left edge of the...
-
2. A catering manager has been asked to organize a banquet for 100 guests. Table 1 shows the key activities, their durations and precedence. a. Construct a network diagram b. Identify the critical...
-
This year, for the first time, Samson Corporation must report supplementary information by operating segment. The controller has prepared the following note for inclusion in the annual report....
-
Read the case study Richter: Information Technology at Hungarys Largest Pharma and answer the following question: How does the organization ensure the accuracy of the data it stores?
-
The preferred stock of LLC International sells for $35 and pays 5 percent dividends. The net price of the stock is $30. What is the cost of capital for the preferred stock?
-
What is the difference between horizontal and vertical analysis of financial statements?
-
What is the difference between horizontal and vertical analysis of financial statements?
-
a. Why is it advantageous to have a high inventory turnover? b. Is it possible for the inventory turnover to be too high? Discuss. c. Is it possible to have a high inventory turnover and a high...
-
What factors contribute to the formation of high-performance teams, and how can organizations cultivate and sustain these dynamics over time ?
-
The standard 2-pass spur gear train with the # of teeth on each gear as shown is driven is driven at 1000 RPM from shaft 2 with a torque of 25 in-lb. All the gears in the set have a diametral pitch...
-
Marigold, Inc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2022 are: March April May June July Budgeted sales $299500 $290000 $319700 $279100 $209800...
Study smarter with the SolutionInn App