Consider the following financial statements about DANIEL Co. for the current year 2015
I/S for the year ended Dec. 31, 2015
Sales $16,000
CGS 10,000
Operating expenses 4,000
Profit from operations (EBIT) 2,000
Interest expense 200
EBT 1,800
Tax expense 600
NI $ 1,200
Additional information:
Operating expenses include $150 of depreciation expense and a $200 impairment loss on equipment.
A/R increased by $380
Inventory decreased by $100
Prepaid expenses related to operating expense increased by $80
A/P decreased by $360
Accrued liabilities related to operating expenses decreased by $180
Interest payable decreased by $20
Unearned revenue received from customers decreased by $34
Income tax payable increased by $40
Required:
Prepare CFO section of the cash flow statement under the (a) DIRECT (12 marks);
and (b) INDIRECT methods (8 marks)

Answer:

a.  For the Year Ended December 31, 2015

Cash flows from operating activities:  

Cash received from customers                15586

Cash paid to suppliers                              -10260  

Cash paid for operating expenses           -3910

Cash paid for interest                                -220

Cash paid for income taxes                       -560

Net cash flow from operating activities      636

Working:

Sales                                                       16000

Less: Increase in accounts receivable -380

Less: Decrease in unearned revenue   -34

Cash received from customers             15586

Cost of goods sold                                 10000

Add: Decrease in accounts payable      360

Less: Decrease in inventory                    -100

Cash paid to suppliers                             10260

Operating expenses                                 4000

Less: Noncash expenses  

Depreciation expense                                -150

Impairment loss                                          -200

Cash operating expenses                          3650

Add: Increase in prepaid expenses           80

Add: Decrease in accrued liabilities           180

Cash paid for operating expenses             3910

Interest expense                               200

Add: Decrease in interest payable  20

Cash paid for interest                      220

Income tax expense                               600

Less: Increase in income tax payable   -40

Cash paid for income taxes                   560

(b)        Partial Cash Flow Statement (Indirect Method)

             For the Year Ended December 31, 2015

Cash flows from operating activities

Net income                                                  1200

Adjustments to reconcile net

income to operating cash flows:  

Depreciation expense                   150  

Impairment loss                              200  

Increase in accounts receivable -380  

Decrease in inventory                     100  

Increase in prepaid expenses       -80  

Decrease in accounts payable      -360  

Decrease in accrued liabilities       -180  

Decrease in interest payable         -20  

Decrease in unearned revenue      -34  

Increase in income tax payable      40              -564

Net cash flow from operating activities          636

The following note transactions occurred during the year for Towell Company: Nov. 25 Towell issued a 90-day, 10% note payable for $80,000 to Hyatt Company for merchandise. Dec. 7 Towell signed a 120-day, 9% note at the bank for $120,000. Dec. 22 Towell gave Barr, Inc., a 60-day, 9%, $120,000 note for payment of account. Prepare the general journal entries necessary to adjust the interest accounts at December 31. Use 360 days for calculations and round to the nearest dollar.

The process for applying for a work permit at the Manchester department of labor is as follows. First, the administrator fills out an application (5 minutes) and takes a picture (1 minute). Then, a clerk enters the information and processes the permit (5 minutes). There are two administrators and three clerks. If the number of licenses per hour for the administrators is 16 and the number of licenses per hour for the clerks is 20.57, what is the hourly service rate for administrators

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In addition, accrued rents on the office building to date of death is $24,000; accrued interest on the bonds at date of death is $200; $400 in dividends are outstanding on the Leck stock (date of record April 30, 2016). Felipe's gross estate is $__________.

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A- Niche cost leader
B- Niche differentiation
C- Broad cost leader
D- Broad differentiation

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Target common equity weight: 80 percent
Target debt weight: 20 percent
Cost of equity: 15 percent
Cost of debt: 5 percent
Tax rate: 35 percent
A) WACC = 12.65 percent
B) WACC = 8.45 percent
C) WACC = 13.00 percent

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How is environmental pollution market failure

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Drag the tiles to the correct boxes to complete the pairs.
Determine the management style that corresponds with each term.
Lila has complete faith in her team. She believes in
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Jacob prefers to make all decisions himself. He does
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Hannah makes a final decision after listen to
and considering her employees' suggestions
bureaucratic
laissez-faire
11
autocratic

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C. it translates beliefs into action
D. it communicates values through symbols
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the first step in successfully creating and using a budget is

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O True
O False

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a) true
b) false

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Financial well-being refers to a person that (check all that apply) *

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in international trade the Monopoly tendency appearing in which form​

what is economic define in brief​

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