Asked by Latanya Haynes on Jun 30, 2024
Verified
Manila Corporation's comparative balance sheet appears below: The company's net income (loss)for the year was $0 and its cash dividends were $2,000.It did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year.
Required:
Compute the change in each balance sheet account denoted with an asterisk (*).Indicate whether the change in each balance will be recorded in the operating, investing, or financing activities section of the statement of cash flows.For items recorded in the operating activities section, also indicate whether the change will be added to or subtracted from net income.For all other items, indicate whether the change will be added as a cash inflow or subtracted as a cash outflow.The first entry has been filled in as an example.
Balance Sheet
A financial statement that presents a company’s financial position at a specific point in time, detailing assets, liabilities, and shareholders' equity.
Statement Of Cash Flows
A financial report that provides a summary of a company's cash inflows and outflows over a specific period.
Net Income
The total profit of a company after all revenues and gains are added together and all expenses and losses are subtracted.
- Understand the impact of changes in balance sheet accounts on the cash flow statement.
- Skills in analyzing the comparative balance sheets to identify the cash impacts of various transactions.
- Understand the role of net income, dividends, and other adjustments in calculating cash flows.
Verified Answer
Learning Objectives
- Understand the impact of changes in balance sheet accounts on the cash flow statement.
- Skills in analyzing the comparative balance sheets to identify the cash impacts of various transactions.
- Understand the role of net income, dividends, and other adjustments in calculating cash flows.
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