Statement of Cash Flows Solutions to Questions 14-1 The statement of cash flows highlights the major activities that impact cash flows and hence affect the overall cash balance. 14-2 Cash equivalents are short-term‚ highly liquid investments such as Treasury bills‚ commercial paper‚ and money market funds. They are included with cash because investments of this type are made solely for the purpose of generating a return on temporarily idle funds and they can be easily converted to cash. 14-3 (1)
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Statement of Cash Flows Chapter 8 Measuring & reporting cash flows pages 448-472 448 472 pages 484-489 1 1 Learning objectives 1. 2. 3. 4. Explain why cash is important to the reporting entity Define cash and cash equivalents Distinguish between accrual- and cash-based transaction recognition Compare and contrast the roles of the four external financial reports (statement of financial performance‚ statement of financial position‚ statement of changes in equity and statement of cash flows) Discuss
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.........21 3.3.4 Financial 22 Profitability ratios: 22 Liquidity ratios: 25 Capitalization/financial leverage ratios 28
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Initial cash flow at t=0: Purchase: -$700‚000 Shipping and installation: -$100‚000 Depreciable basis = $800‚000 Old machine after taxes = $120‚000 - ($120‚000-$80‚000)(.40) = $104‚000 Initial Cash flow = -$800‚000 + $104‚000 = -$696‚000 Depreciation: Year 1: $800‚000 * .3333 = $266‚640 Year 2: $800‚000 * .4445 = $355‚600 Year 3: $800‚000 * .1481 = $118‚480 Year 4: $800‚000 * .0741 = $59‚280 Yearly revenue change: Decrease operating expenses of $90‚000 Incremental net cash flow at t=1:
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19 1. Worldwide Paper Company has an opportunity to take on a new project. With this project they would be considering an addition of a new on site Longwood wood yard. The yearly cash flows for this investment seem to be very good if everything remained or exceeded the assumptions on which the cash flows $18 million is not a small investment but in the long run the company catching up to get back the invested money and also allowing them to make huge profits. The company is paying a 40% tax from
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Financial Reporting of the Coca Cola Company ACC/290 November 27‚ 2012 Financial Reporting of the Coca Cola Company When looking at a company’s financial statements‚ such as the Coca Cola Company‚ one piece of important information that should not be overlooked is the total current assets. Kimmel‚ Weygandt‚ and Kieso describe current assets as “assets that a company expects to convert to cash or use up within one year or its operating cycle‚ whichever is longer” (2009). The total current assets
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De Contabilidad Prof. Alejandro Méndez Case 11-1 Polluter Corp Facts of Case: Polluter Corp is an SEC registrant and manufacturer household cleaning products. In the course of operations‚ Polluter Corp emits emission pollutants; The Company receives emissions allowances‚ (EAs‚) from the government for 2010 to 2030. Polluter Corp will upgrade their production facilities in 2014 in order to reduce their pollutants. Emissions Allowance are given by the government in order to offset
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the young journeymen looked up to Meriwether Lewis (Lewis) and William Clark (Clark). Looking at the picture‚ one can see the great journey of Lewis and Clark. From the start to the end of their journey‚ each section of the picture tells a very detailed part. The importance of this picture is one can see and feel their journey‚ from finding new plants and animals‚ to meeting with over 50 Native American tribes. Lewis and Clark played a very critical part in history. Their journey however was almost
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Hey Clark found another animal it is long and no arms or legs. When Lewis and Clark went west to find out about the Louisiana territory. Lewis and Clark went off on their expedition on May 4‚ 1804 and came back September 23‚ 1806. They tried to find the Northwest Passage for the Pacific to the Port of New Orleans. Bull snake was found on August 5‚ 2801 near the mouth of Niobrara River‚ Nebraska. It was a large yellowish snake with 41 or more black‚ brown‚ or reddish-brown body blotches‚ dark line
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In the Lewis and Clark expedition‚ they had a true journey‚ but one concept that affected the expedition greatly was the ecosystems that they went through. They had many different types of ecosystems and they had to learn to adapt to them‚ and they did completing the expedition. This is important because they discovered different types of ecosystems‚ and they also found easier ways to travel through these places. It also leads to more scientific research about the ecosystems‚ because it was the first
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