Return of Chicken Feet case solution

Return of Chicken Feet case solution - 1 RETURN OF CHICKEN...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1 RETURN OF CHICKEN FEET Episode III of the Chicken Foot Trilogy Theyre baaaaack Dive in feet first Preparing the Cash Flow Statement z First, lets use horizontal worksheet to understand the inner workings of the CFS z Then, well T-Account approach, which is more general Return of Chicken Feet Direct Cash Flow Statement Approach Sort the events into The objective of CFS i Thus, the objective is to explain the The operating cash flows include The investing cash flows include The financing cash flows include operating, investing, and financing. the CFS is to explain the changes in the cash account. difference between the beginning and ending cash balances. customer collections less payments to vendors, employees, etc. payments for PP&E and securities less inflows from selling similar items. inflows from issuing debt and stock less dividends, and stock repurchases. 2 = + + C + AR + PPD + Inv + NR + E- AcDep = + AP + ACC + NP + CS + APIC + RE + SalesR- COGS- UExp- RExp- WExp- DExp + InSum Beginning Balance $72 $0 $0 $22 $1 $25 $0 $2 $0 $8 $82.5 $27.5 $0 $0 $0 $0 $0 $0 $0 $0 E1 Buys equipment-$95 $95 E2 Pays rent-$10 $10 E3 Buys inventory-$40 $40 E4 Sales made $175 $175 E5 Pays w ages-$20- $20 Temporary Accounts Owners' Equity Assets Liabilities Permanent Return of Chicken Feet Entries that have a direct cash flow effect E6 Pays dividend-$7-$1-$8 E7a Ending inventory-$25- $25 E7b Depreciation- $1- $1 E7c Utility bil $1- $1 E7d Wages accrued $4- $4 E7e USC banquet $33 $33 E7f Rent expires-$5- $5 Ending Balance $75 + $33 + $5 + $37 + $0 + $120 - $1 = + $2 + $5 + $8 + $82.5 + $27.5 + $144 + $0 - $0 - $0 - $0 - $0 - $0 $0 Account Changes $3 + $33 + $5 + $15 +-$1 + $95 - $1 = + $0 + $5 + $0 + $0 + $0 + $144 + $0 - $0 - $0 - $0 - $0 - $0 + $0 uys equipment 95 Buys equipment-$95 Pays rent-$10 Buys inventory-$40 Sales made $175 Pays wages-$20 Pays dividend-$ 7 = + + C + AR + PPD + Inv + NR + E- AcDep = + AP + ACC + NP + CS + APIC + RE + SalesR- COGS- UExp- RExp- WExp- DExp + InSum Beginning Balance $72 $0 $0 $22 $1 $25 $0 $2 $0 $8 $82.5 $27.5 $0 $0 $0 $0 $0 $0 $0 $0 E1 Buys equipment-$95 $95 E2 Pays rent-$10 $10 E3 Buys inventory-$40 $40 E4 Sales made $175 $175 E5 Pays wages-$20- $20 Temporary Accounts Owners' Equity Assets Liabilities Permanent Return of Chicken Feet Classify the Entries as Operating, Investing, or Financing Activities E6 Pays dividend-$7-$1-$8 E7a Ending inventory-$25- $25 E7b Depreciation- $1- $1 E7c Utility bil $1- $1 E7d Wages accrued $4- $4 E7e USC banquet $33 $33 E7f Rent expires-$5- $5 Ending Balance $75 + $33 + $5 + $37 + $0 + $120 - $1 = + $2 + $5 + $8 + $82.5 + $27.5 + $144 + $0 - $0 - $0 - $0 - $0 - $0 $0 Account Changes $3 + $33 + $5 + $15 + -$1 + $95 - $1 = + $0 + $5 + $0 + $0 + $0 + $144 + $0 - $0 - $0 - $0 - $0 - $0 + $0 uys equipment 95 vesting Buys equipment-$95 Pays rent-$10 Buys inventory-$40 Sales made $175 Pays wages-$20 Pays dividend-$ 7 Investing Operating Operating Operating Operating Financing...
View Full Document

Page1 / 7

Return of Chicken Feet case solution - 1 RETURN OF CHICKEN...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online