HW#9 - Commerce 293 Homework Nine Statement of Cash Flows...

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Unformatted text preview: Commerce 293 Homework Nine Statement of Cash Flows 29 Marks Available Question 1 (15 marks; suggested time 15 minutes) Below are all the income statement amounts/accounts and selected (not all) balance sheet accounts/amounts for XBT Ltd. CaseI . . . Case II . Revenues $275,000 $3 75,000 Cost ofgoods sold 50,000 417,000 . Amortization expense 25,000 35,000 Advertising expense 12,000 9,000 Interest expense 6,000 ' 12,000 Gain/(loss) on sales of equipment 10,000 (8,000) Dividends paid — 10,000 Increase/(Decrease) in: Building and equipment 100,000 (60,000) Common shares 20,000 40,000 Bonds payable 10,000 (3 0,000) Bond discount (3,000) (2,000) Interest payable 2,000 4,000 Accounts payable 6,000 (6,000) Accounts receivable (8,000) 8,000 Inventories 12,000 ' 10,000 Prepaid expenses 4,500 (2,500) Required: Case 111 $415,000 260,000 40,000 10,000 15,000 6,000 5,000 - 80,000 50,000 30,000 - (1,000) (3,000) (7,000) (12,000) 5,500 Calculate the cash flow from (to) operations (only operating activities, ignore financing and investing sections) in each of these three scenarios. Use the indirect method. Question 2 (5 marks; suggested time 5 minutes) Below are selected amounts for CFT Ltd’s financial statements: Income Statements Amounts for the year ended Dec. 31, 20x5 _ $500,000 Revenue InCOme Taxes Payable 5,000 3,900 Bonds 100,000 _ 100,000 Discount _ 3 ,3 00 2,900 . _ — ' ' . ' ' (15 marks) Required: 3. How much did CFT collect in 20x5? (1 mark) b. How much invent0ry did CFT purchase in 20x5? (1 mark) c. How much income taxes did CFT pay in 20x5? (1 mark) d. How much interest did CFT pay in 20x5? (2 mark) Question 3 (9 marks; suggested time 9 minutes) ABC Ltd. reported the following information On its financial statements: Net Income Cash flow from Operating activities - Cash flow (to) investing activities Cash flow from financing activities (see details below) Change in Cash During the Year Details of Financing Activities: Issued Debt Issued (retire) Equity Dividend Paid Cash flow from financing activities Required: I - After reviewing the above data, and in particular the statement of cash flow, identify and I 20x4 20x3 20x2 $350,000 $300,000 $200,000 Summarized Statement of Cash Flows $150,000 $250,000 $175,000 (300,000) (600,000) (500,000) 50 000 435 000 400 000 LQQOOO 85 000 75 000 $400,000 $460,000 $375,000 (150,000) 105,000 100,000 (200 000) (130 000) (75 000) $50 000 $435,,(m $400 000 thoughtfiilly discuss three conclusions or observations you might make concerning ABC Ltd. Make reasonable assumptions that are logical/consistent with the given the information. (9 marks) ...
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This note was uploaded on 09/01/2011 for the course COMM 293 taught by Professor Jackes during the Spring '08 term at The University of British Columbia.

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HW#9 - Commerce 293 Homework Nine Statement of Cash Flows...

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