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62#
发表于 2012-3-26 16:01
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The Red Company’s balance sheet as of December 31, 2004 was as follows:
| Dec. 31, 2003 | Dec. 31, 2004 |
Cash | $1,500,000 | $1,900,000 |
Accounts Receivable | 3,000,000 | 3,400,000 |
Inventory | 2,300,000 | 2,500,000 |
Property, Plant & Equipment | 16,700,000 | 19,700,000 |
Less Accumulated Depreciation | (5,300,000) | (8,200,000) |
Total Assets | $18,200,000 | $19,300,000 |
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|
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Accounts Payable | $2,100,000 | $1,900,000 |
Interest Payable | 800,000 | 1,200,000 |
Income Taxes Payable | 1,000,000 | 800,000 |
Notes Payable | 2,700,000 | 2,900,000 |
Deferred Income Taxes | 2,600,000 | 2,900,000 |
Common Stock | 1,000,000 | 1,000,000 |
Retained Earnings | 8,000,000 | 8,600,000 |
| $18,200,000 | $19,300,000 |
Red’s interest expense was $900,000 and income tax expense was $1,000,000 in 2004. Red prepares its Statements of Cash Flows using the direct method.The other cash outflows section of Cash Flow from Operations (CFO) for 2004 would total:
Other cash outflows is the third step in calculating CFO using the direct method. It consists of Cash taxes paid + Cash interest paid.
Cash interest paid = interest expense less increase in interest payable: ($900,000 – (1,200,000 - $800,000) =) $500,000.
Cash taxes paid = |
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tax expense of $1,000,000 |
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+ |
decrease in income taxes payable (1,000,000-800,000) = 200,000 |
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- |
increase in deferred income taxes (2,600,000-2,900,000) = 300,000 |
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$900,000 |
Other cash outflows = $500,000 + 900,000 = $1,400,000 |
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