AMERBRAN COMPANY, cash flows_0

AMERBRAN COMPANY, - term liabilities because the latter also includes deferred taxes bonuses generated no cash The stock dividend was in effect a

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Case 11-2 Amerbran Company (A) *
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Note: This case is unchanged from the Eleventh Edition. Approach
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statement of cash flows. Since specific information is not given on cash collections and operating disbursements, it is expected that students will use the indirect approach in developing the cash generated by operations amount. The statements in Exhibit I also provide the raw data for the (B) case, which is a ratio analysis case that appears in Chapter 13. Answer to Question
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The required cash flow statement appears below. The explanatory notes to the statement are as follows:
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Note 1 This is the net of the following components:
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inventories (19,510) Decrease in prepaid expenses 1,027 Increase in accounts payable 33,075 Increase in accrued expenses payable 194,728 $ 140,493
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Note 2. The two components of this acquisition, as given in the case, could be shown separately.
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Note 3. The decrease in long-term debt is less than the decrease in long-
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Unformatted text preview: term liabilities because the latter also includes deferred taxes. bonuses generated no cash. The stock dividend was, in effect, a 2-for-1 stock split. The only difference is that if it were a stock split, the total shown for common stock at par would have remained $161,417 rather than doubling to $322,834. explained is only $4,960, “miscellaneous activities” must have used $6,825 of cash. Some students may include this line in operating activities, rather than as a fourth category; if they do, the net cash flow from operations becomes $567,303. activities: Acquisitions of property, plant, and equipment (260,075) Proceeds from disposals 33,162 Acquisition of Company X (Note 2) (133,721) Net cash used by investing activities (360,634) Cash flows from financing activities: Increase in short-term debt 79,664 Decrease in long-term debt (Note 3)...
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This note was uploaded on 11/12/2010 for the course MBA Bus 550 taught by Professor Emby during the Spring '10 term at Simon Fraser.

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AMERBRAN COMPANY, - term liabilities because the latter also includes deferred taxes bonuses generated no cash The stock dividend was in effect a

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