Pease I need it on word file Complete the following textbook problems: E13-5 E13-7 E13-17 P13-1 AP13-1

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Complete the following textbook problems:


E13-5


E13-7


E13-17


P13-1


AP13-1




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Pease I need it on word file Complete the following textbook problems: E13-5 E13-7 E13-17 P13-1 AP13-1






Pease I need it on word file Complete the following textbook problems: E13-5 E13-7 E13-17 P13-1 AP13-1
Answered Same DayDec 20, 2021

Answer To: Pease I need it on word file Complete the following textbook problems: E13-5 E13-7 E13-17 P13-1...

David answered on Dec 20 2021
114 Votes
Solution E13-5:
Comparison of Statement of Cash Flows direct and indirect reporting
    
Cash flows
    Statement of Cash Flows Method
    (and related changes)
    Direct
    Indirect
    
     1.
    
    Accounts payable increase or decrease
    
    X
    
     2.
    
    Payments to empl
oyees
    X
    
    
     3.
    
    Cash collections from customers
    X
    
    
     4.
    
    Accounts receivable increase or decrease
    
    X
    
    5.
    
    Payments to suppliers
    X
    
    
    6.
    
    Inventory increase or decrease
    
    X
    
     7.
    
    Wages payable, increase or decrease
    
    X
    
     8.
    
    Depreciation expense
    
    X
    
     9.
    
    Net income
    
    X
    
    10.
    
    Cash flows from operating activities
    X
    X
    
    11.
    
    Cash flows from investing activities
    X
    X
    
    12.
    
    Cash flows from financing activities
    X
    X
    
    13.
    
    Net increase or decrease in cash during the period
    X
    X
Solution E13-7
1)
    Cash flows from operating activities—indirect method
    
    
    Net loss
    ($4,900
    )
    Depreciation expense
    7,000
    
    Amortization of copyrights
    200
    
    Accounts receivable decrease ($8,000 – $15,000)
    7,000
    
    Salaries payable increase ($15,000 – $1,000)
    14,000
    
    Other accrued liabilities decrease ($1,000 – $5,100)
    (4,100
    )
    Net cash provided by operating activities
    $19,200
    
2) The net loss is because of the non-cash expense i.e. depreciation. Depreciation expense with decrease in working capital causes the net loss to change into positive operating cash flow from operations. To know the difference between cash flow and net income is important because it helps the financial analyst in determining that whether trends represent one-time events.
Solution E13-17
1)
The investing and financing sections of the statement of cash flows for Gibraltar Industries:
    Cash flows from investing activities:
    
    
     Acquisitions (investments in other companies)
    (8,724)
    
     Proceeds from sale of other equity investments
    34,701
    
     Purchases of property, plant and equipment
    (21,595)
    
     Net proceeds from sale of property and equipment
    2,692
    
    Net cash used in investing activities
    
    7,074
    
    
    
    Cash flows from financing activities:
    
    
     Long-term debt reduction
    (185,567)
    
     Proceeds from long-term debt
    53,439
    
     Net proceeds from issuance of common stock
    250
    
     Payment of dividends
    (5,985)
    
    Net cash provided by (used in) financing activities
    
    (137,863)
2)
    Capital acquisitions ratio
    =
    Cash flow from operations
    =
    $107,874
    =
    5.00
    
    
    Cash Paid for Plant & Equipment
    
    $21,595
    
    
Since this ratio is more than 1, it indicates...
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