EX 8-25 Variation in cash flows nc, designs, manufactures, and markets toy produ

Question

EX 8-25 Variation in cash flows nc, designs, manufactures, and markets toy products worldwide. Mattel's toys include and Fisher-Price brands. For a recent year, Mattel reported the following net cash flows from operating activities (in thousands) Barbie fashi on dolls and accessories, Hot Wheels First quarter ending March 31 Second quarter ending June 3 Third quarter ending September 30 Fourth quarter ending December 31 $ (53,110) (187,663) 18,435 956,895 Explain why Mattel reported negative net cash flows from operating activi- ties during the first and second quarters and a large positive cash flow for the fourth quarter, with overall net positive cash flow for the year.

Explanation / Answer

Ex 8-21 )    a.) Bank Reconciliation Statement  

  

b. $11435 , should be recorded for cash ,because it is an adjusted balance extracted from Bank reconciliation.

Cash balance according to Bank statement $20300 Less: Outstanding checks 3585 Note received by Bank, not recorded in Cash book 12480 16065 $4235 Add: Deposit in transit 7200 7200 Adjusting balance $11435 Cash balance according to Company records 11100 Add:   Error in recording check no 1056 360 less: Bank charges 25 Adjusting balance $11435

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