PROBLEM: Statement of Cash Flow
Fey Inc reports the statement for the year ended December 31, 2014:
Cost goods sold
Selling and administrative expense
Income before tax
The company also reports the following information from the balance sheet:
December 31, December 31,
Accrued selling and admin expenses
Prepare good form, the operating section o the statement of cash flow,using the
direct method for Fey Inc. for December 31, 2014.
Prepare good form, the operating section of the statement of cash flow using the
indirect method for Fey Inc for December 31, 2014.
Does the composition Verizons cash flow present "healthy" picture for 2010? Explain using the
following matrix Assume Verizon isa mature firm. Use this table Part 2
What your expectation
What Verizon's actual performance?
Does differ from your expectation?
uncertain) of the cash flow
Why? Please interprer each section
item? Why expect
be positive negative/
PROBLEM Revenue Recognition
Identify when each of the following companies should recognize revenue
production begins, (il) cash collection after replacement cost are
(iv) point of sale
completion c product, and (vi) durin g production AND
Discuss any income measurement risksthat could arise.
evidence arrangement, (ii) delivery has occurred/ services have been rendered, (ii))price is
fixed deter minable, collectability assured
RealMoney provides investment advice for upfront fee. provides these customer:
with rd-protected access Website where can download
Wells Fargo large commercia that earns interest onloans
Harley Davidson manufactures and retails motorcydes provides financing for dealers and
e) Allisaninternet clothing retailer It receives credit card payments wher customers place their
orders products from warehouses within business days
Point of revesue
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Cash Receipts from Customers
Sales + beginning A/R – ending A/R
1,890,000 + 50,000 – 85,000 = 1,855,000
Cash Payment to Suppliers
Purchases + beginning A/P – ending A/P
Purchases = Cost of Goods Sold + ending inventory – beginning inventory
(610,400 + 24,000 – 31,000) + 189,000 – 165,000 = 627,400...