Show Me the Money case solution

Show Me the Money case solution - Show Me The Money...

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1 E1: Purchases equipment worth $1,000,000 in cash WAL-MART had the following Accounting Events: Show Me The Money qp $ , , E2: Six-month prepaid fire insurance worth $5,000 expires E3: Sells merchandise on account for $8,000 E4: Pays dividends to shareholders of $5,000 E5: Depreciation expense for the plant is $1,000 E6: Pays $3,000 of existing accounts payable to suppliers 7: Makes interest payment of $3,000 (the interest expense E7: Makes interest payment of $3,000 (the interest expense was not previously accrued) Understanding the indirect cash flow statement implications of the various events Show Me The Money =+ Permanent + C + AR + PPD + E - AcDep = + AP + RE + SalesR - InsExp - IntExp - DExp Beginning Balance $0 $0 $5 $0 $0 $3 $0 $0 $0 $0 $0 Temporary Accounts Ow ners' Equity Assets Liabilities E1 Purchases equipment E2 Prepaid insurance expiry E3 Sels merchandise E4 Pays dividends E5 Depreciation E6 Pays accounts payable E7 Makes interes t payment $1,000 -$1,000 Trial Balance ++ +- = + + + - - - Debit Credit E1 E $1,000 C $1,000 Show Me The Money E1: Purchases equipment worth $1,000,000 in cash B/S Debit Credit E $1,000 C $1,000 C (A) -$1,000 I/S No effect E (A) $1,000 Investing Activities Increase in equipment -$1,000 Net Cash Flow from Investing Activities -$1,000 SCF Understanding the indirect cash flow statement implications of the various events Show Me The Money Permanent + C + AR + PPD + E - AcDep = + AP + + SalesR - InsExp - IntExp - Beginning Balance $0 $0 $5 $0 $0 $3 $0 $0 $0 $0 $0 Temporary Accounts Owners' Equity Assets Liabilities E1 Purchases equipment -$1,000 $1,000 E2 Prepaid insurance expiry E3 Sels merchandise E4 Pays dividends E5 Depreciation
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Show Me the Money case solution - Show Me The Money...

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