Question

In 2024, Moon Walk had the following additional transactions: - Sold equipment for $25,000 cash - Purchased a vehicle for $32,000 cash - Issued Bonds Payable in exchange for $1,500,000 cash - Paid a cash dividend of $100,000 Answer the following questions related to preparing Moon Walk's Statement of Cash Flows for December 31, 2024. What is Net Income? What is Cash Flow Provided by Operations? What is Cash Flow Used in Investing Activities? What is Cash Flow Provided by Financing Activities? What was the Net increase in Cash? Did the change in Accounts Receivable increase or Decrease cash? enter single word increase or Decrease Did the change in income Taxes Payable Increase or Decrease cash? enter single word Increose or Decrease What is Cash Flow Provided by Financing Activities? What was the Net Increase in Cash? Did the change in Accounts Receivable Increase or Decrease cash? enter single word Increase Decrease Did the change in Income Taxes Payable Increase or Decrease cash? enter single word Increas Decrease What were total Non Cash expenses?

Answer 1

The preparation of Moon Walk's Statement of Cash Flows requires more information than what is provided. However, with the given transactions, the cash used in investing activities is a net outflow of $7,000, and the cash provided by financing activities is a net inflow of $1,400,000. We cannot determine Net Income, the Net Increase in Cash, the Cash Flow Provided by Operations, or total Non-Cash expenses with the provided data.

Step-by-step explanation:

The question pertains to the preparation of the Statement of Cash Flows for Moon Walk for the year ended December 31, 2024. Preparing this statement involves categorizing cash flows into three segments: operating activities, investing activities, and financing activities.

The Net Income would come from the income statement, which is not provided in the provided transactions. Thus, we cannot determine Net Income from the given information.

Cash Flow Provided by Operations generally includes net income adjusted for non-cash expenses and changes in working capital. Without more information about Moon Walk's income and expenses or changes in working capital (other than accounts receivable and income taxes payable), we cannot fully determine the cash flow from operating activities.

Cash Flow Used in Investing Activities is calculated as the net amount of cash spent on long-term assets. From the given transactions, this would include the purchase of a vehicle for $32,000, and it would be partially offset by the sale of equipment for $25,000, leading to a net cash outflow of $7,000 for investing activities.

For Cash Flow Provided by Financing Activities, the relevant transactions are the issuance of bonds payable for $1,500,000 and the payment of a cash dividend of $100,000. This results in a net cash inflow from financing activities of $1,400,000.

The Net Increase in Cash is the sum of cash provided by or used in each of the three activities. However, with incomplete data provided, this cannot be fully calculated.

A decrease in Accounts Receivable generally indicates that cash has been collected from customers, leading to an increase in cash. Conversely, an increase in Income Taxes Payable suggests that taxes have been incurred but not yet paid, resulting in a temporary cash inflow until those taxes are paid. These changes in working capital would impact the cash flow from operating activities.

The total Non-Cash expenses are not provided in the transactions listed and therefore cannot be determined from the given information. Non-cash expenses often include items like depreciation or amortization, which would be found on the income statement or in the notes to financial statements.

Answer 2

In 2024, Moon Walk had several transactions that are relevant to preparing its Statement of Cash Flows for December 31, 2024.

How is that so?

Based on general principles of account, below is an explanation of the required terms:

1. Net Income: Net income is the total profit or profit that a company generates later deducting all expenses and taxes from allure total revenue. To decide net income, you need to consider all the revenues and expenses incurred all the while a specific ending, usually a fiscal year.

2. Cash Flow Provided by Operations: Cash flow given by operations refers to the net amount of cash create or used by a guest's core business movements. It includes cash taken from customers, cash rewarded to suppliers, and any other cash flows straightforwardly related to the association's day-to-day endeavors.

3. Cash Flow Used in Investing Activities: Available funds used in installing activities includes cash outflows happening from investments in enduring assets in the way that property, plant, and equipment, in addition to cash received from the business or disposal of these property.

4. Cash Flow Provided by Financing Activities: Available funds provided by funding activities represents the cash inflows and outflows had connection with the company's funding activities. This includes cash taken from issuing credit or equity, in addition to cash paid for dividends, recover possession stock, or paying off bill.

5. Net Increase in Cash: The net increase in cash is determined by subtracting the cash balance at the beginning of the period from the cash balance in the end of the period. It shows the overall change in cash during the particular time frame.

6. Change in Accounts Receivable: The change in accounts due is the difference betwixt the accounts receivable balance at first and end of the period. If the conclusion balance is higher than the origin balance, it represents an increase in cash, while a lower ending balance signifies a decrease in cash.

7. Change in Income Taxes Payable: The change in income taxes unpaid is the difference between the revenue taxes payable balance at first and end of the period. If the ending balance is above the beginning balance, it shows an increase in cash, while a lower ending balance displays a decrease in cash.

8. Total Non Cash Expenses: Total non-cash expenses are expenses that are recognized in the wage statement but do not include any actual cash efflux. Examples contain depreciation, fee, and non-cash expenses related to stock-located compensation.