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In: Finance

On Len and Joan Miller’s personal statements of financial position shown below, identify whether each account...

On Len and Joan Miller’s personal statements of financial position shown below, identify whether each account is a cash inflow or a cash outflow.

2014 2013 Cash Inflows Cash Outflows

Assets

House $205,000 $136,000

Car 22,000 6,000

Furniture 8,500 7,000

RRSPs 30,000 20,000

Savings bonds 5,000 4,000

Short-term deposits 2,000 2,000

Total assets $272,500 $175,000

Equity $ 111,000 $ 80,000

Liabilities

Mortgage 112,000 79,000

Car loan 24,000 3,000

BMO Bank of Montreal 21,000 11,000

Amex 4,500 2,000

Total liabilities 161,500 95,000

Total equity

and liabilities $272,500 $175,000 $ 97,500 $ 97,500

Indicate under which activity (operating, financing, or investing) the following accounts belong in the statement of cash flows:

Activity

Notes receivable (short-term)

RRSP

Computers

Long-term borrowings

Profit for the year

Notes payable (short-term)

Depreciation/amortization

Inventories

Car

Expert Solution

On Len and Joan Miller’s personal statements of financial position shown below, identify whether each account is a cash inflow or a cash outflow.

ANSWER:-

2014 2013 Cash Inflows Cash Outflows

Assets

House $205,000 $136,000 cash outlow

Car 22,000 6,000 cash outflow

Furniture 8,500 7,000 cash outflow

RRSPs 30,000 20,000 cash outflow

Indicate under which activity (operating, financing, or investing) the following accounts belong in the statement of cash flows:

ANSWER :-

Activity

Notes receivable (short-term) Operating activity

RRSP Investing Activity

Computers Investing activity

Long-term borrowings Financing activity

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