Textbook solutions does not show the Statement of Cash Flows for the Master Budg

Question

Textbook solutions does not show the Statement of Cash Flows for the Master Budget on Chapter 8 Question 62 of Cost Accounting Foundation and Evolutions by Kinney & Raiborn. Please help what all should be on the Operating, Investing, & Financing?

82237

3499

-58

This is what I have so far, but it does not match up.

Please help!

Net Income

82237

Depreciation 7150 Increase in net Accounts Rec -39500 Increase in Total Inventory -826 Increase in income taxes payable 44282 Increase in accured interest payable 451 Increase in Accounts Payable

3499

Net Cash inflow from operating activities 97293 Investing Purchase of Equipment -9000 Short-term investment 55300 Net cash outflow from investing activites -64300 Financing Activities Dividends Paid -10000 Net Cash outflow from financing activites -10000 Net Decrease in cash

-58

Beginning balance of cash 1/1/14 5080 Ending balance of cash 3/31/14 5022

Explanation / Answer

Short-term investments are highly liquid in natures and classifiable as current assets. When the assets are considered as current assets, increase in current needs to be considered under operating activities not under investing activities.

Please classify the short-term investment under operating activities. Then, solution will be tallied.

Net cash inflows from operating activities = $41,993 ($97,293-$55,300)

Net cash outflows from investing activities = -$9,000 (-$64,300+$55,300)

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.