#1 Portions of the financial statements for Clear Transmissions Company are prov
ID: 2535022 • Letter: #
Question
#1 Portions of the financial statements for Clear Transmissions Company are provided below. CLEAR TRANSMISSIONS COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s) Sales $1,740.00 Cost of goods sold 696 Gross margin 1,044 Salaries expense $304.00 Depreciation expense 215 Patent amortization expense 24 Interest expense 68 Loss on sale of cash equivalents 13 624 Income before taxes 420 Income tax expense 210 Net Income $210.00 CLEAR TRANSMISSIONS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) Year 2018 2017 Change Cash $123.00 $114.00 $9.00 Accounts receivable 234 253 -19 Inventory 447 464 -17 Accounts payable 175 162 13 Salaries payable 87 100 -13 Interest payable 46 34 12 Income taxes payable 36 24 12 Required: Prepare the cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the direct method. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.) Cash Flows from Operating Activities: Net cash flows from operating activities $ #2 In preparation for developing its statement of cash flows for the year ended December 31, 2018, Rapid Pac, Inc., collected the following information: ($ in millions) Fair value of shares issued in a stock dividend 80 Payment for the early extinguishment of 89 long-term bonds (book value: $84.0 million) Proceeds from the sale of treasury stock (cost: $20.0million) 25 Gain on sale of land 2.9 Proceeds from sale of land 8.7 Purchase of Microsoft common stock 148 Declaration of cash dividends 54 Distribution of cash dividends declared in 2017 50 Required: 1. In Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2018? 2. In Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2018? 1.) In Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2018? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) ($ in millions) Cash Flows From Investing Activities: Net cash inflows (outflows) from investing activities 2.) In Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2018? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) ($ in millions) Cash Flows From Financing Activities: Net cash inflows (outflows) from financing activities #1 Portions of the financial statements for Clear Transmissions Company are provided below. CLEAR TRANSMISSIONS COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s) Sales $1,740.00 Cost of goods sold 696 Gross margin 1,044 Salaries expense $304.00 Depreciation expense 215 Patent amortization expense 24 Interest expense 68 Loss on sale of cash equivalents 13 624 Income before taxes 420 Income tax expense 210 Net Income $210.00 CLEAR TRANSMISSIONS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) Year 2018 2017 Change Cash $123.00 $114.00 $9.00 Accounts receivable 234 253 -19 Inventory 447 464 -17 Accounts payable 175 162 13 Salaries payable 87 100 -13 Interest payable 46 34 12 Income taxes payable 36 24 12 Required: Prepare the cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the direct method. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.) Cash Flows from Operating Activities: Net cash flows from operating activities $ #2 In preparation for developing its statement of cash flows for the year ended December 31, 2018, Rapid Pac, Inc., collected the following information: ($ in millions) Fair value of shares issued in a stock dividend 80 Payment for the early extinguishment of 89 long-term bonds (book value: $84.0 million) Proceeds from the sale of treasury stock (cost: $20.0million) 25 Gain on sale of land 2.9 Proceeds from sale of land 8.7 Purchase of Microsoft common stock 148 Declaration of cash dividends 54 Distribution of cash dividends declared in 2017 50 Required: 1. In Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2018? 2. In Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2018? 1.) In Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2018? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) ($ in millions) Cash Flows From Investing Activities: Net cash inflows (outflows) from investing activities 2.) In Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2018? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) ($ in millions) Cash Flows From Financing Activities: Net cash inflows (outflows) from financing activitiesExplanation / Answer
Cash flow Statement
total -assets and liabilities are
(73-23) = -51
73
23
-51
Total from operating activities
(11600-51) =11549
cash flow from financing activities = $1.884 million
cash flow from operating activities = $11.549 million
cash flow from investing activities = $(-236) million
s.no Particulars cash inflows cash outflows amount in thousands amount in millions 1. cash from financing activies sales revenue 1740 Gross profit margin 1044 Cost of goods sold 696 salaries expense 304 Depreciation 215 Patent amortisation expense 24 interest expense 68 loss on sale cash equivalents 13 income tax expense 210 income before tax 420 net income 210 total 3414 1530 1884 1.884 2. cash flow from operating activities increase in cash 9 decrease in salary payable 13 decrease in accounts receivable 19 decrease in inventory 17 increase in accounts payable 13 increase in interest payable 12 increase in taxes payable 12total -assets and liabilities are
(73-23) = -51
73
23
-51
Gain on sale of land 2.9 proceed from sale of land 8.7 11600Total from operating activities
(11600-51) =11549
11549 11.549 3. cash flow from investing activities fair value of share issued at stock dividends 80 sale of treasury stock 25 payment of long term bonds 89 purchase of microsoft common stock 148 Declaration of cash dividends 54 Distribution of cash dividends (Dec. in 2017) 50 total cash from investing activities 105 341 -236Related Questions
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