c. using the indirect method, calculate onlly the net cash flow from operating activities for windsor company for the year ended May 31, 2020

Chapman Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Chapman as of May 31, 2017, are as follows. The company is preparing its statement of cash flows.

The following is additional information concerning Chapman's transactions during the year ended May 31, 2017.

1.All sales during the year were made on account.

2.All merchandise was purchased on account, comprising the total accounts payable account.

3.Plant assets costing $98,000 were purchased by paying $28,000 in cash and issuing 7,000 shares of stock.

4.The “other expenses” are related to prepaid items.

5.All income taxes incurred during the year were paid during the year.

6.In order to supplement its cash, Chapman issued 2,000 shares of common stock at par value.

7.Cash dividends of $105,000 were declared and paid at the end of the fiscal year.

Instructions

(a)  

Compare and contrast the direct method and the indirect method for reporting cash flows from operating activities.

(b)  

Prepare a statement of cash flows for Chapman Company for the year ended May 31, 2017, using the direct method. Be sure to support the statement with appropriate calculations. (A reconciliation of net income to net cash provided is not required.)

(c)  

Using the indirect method, calculate only the net cash flow from operating activities for Chapman Company for the year ended May 31, 2017.

On June 1, 2017, Home Investor Funds, Ltd., [HIF] purchases a call option for $1,500, which gives HIF the right to buy 10,000 shares of Delta Plumbers, Inc., for $27 each until December 1, 2017. Delta shares are currently trading for $26. At June 30, 2017, the option contract could be traded in the market at $48,000. At December 1, 2017, with the shares being traded at $35 each, HIF exercised the option and took delivery of the shares of Delta.

Required: Record all necessary entry/entries related to this contract on the following dates:

a]   June 1, 2017 when HIF acquired the call option.

b]   June 30, 2017, when HIF closes its books of accounts.

c]   December 1, 2017 assuming HIF exercised the call option and took delivery of the shares of Delta.

d] December 1, 2017, assuming HIF settles the call option for cash without taking delivery of the Delta shares.

On June 1, 2017, Home Investor Funds, Ltd., [HIF] purchases a call option for $1,500, which gives HIF the right to buy 10,000 shares of Delta Plumbers, Inc., for $27 each until December 1, 2017. Delta shares are currently trading for $26. At June 30, 2017, the option contract could be traded in the market at $48,000. At December 1, 2017, with the shares being traded at $35 each, HIF exercised the option and took delivery of the shares of Delta.

Required: Record all necessary entry/entries related to this contract on the following dates:

a]   June 1, 2017 when HIF acquired the call option.

b]   June 30, 2017, when HIF closes its books of accounts.

c]   December 1, 2017 assuming HIF exercised the call option and took delivery of the shares of Delta.

d] December 1, 2017, assuming HIF settles the call option for cash without taking delivery of the Delta shares.

On January 1, 2018, Red Flash Photography had the following balances: Cash, $13,000; Supplies, $8,100; Land, $61,000; Deferred Revenue, $5,100; Common Stock $51,000; and Retained Earnings, $26,000. During 2018, the company had the following transactions:  

The following information is available on December 31, 2018:
  
1. Employees are owed an additional $4,100 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $5,100 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.

Exercise One

The final grades in immunology at State University are recorded in the accompanying table (ranged from a possible 0 to 80; Also See Problem 13):

           29   74 51    42   55   75   74   74   79   74    43   79   55   74   25   04   69   78   74   52

           76 74   04    64   76   79   69   77   79   24    75   78   74 69   65   80   72   79   62   79

           08   66   79    43   76   72   45   73   05   79    74   74   75   38   60   02   74   78   79   73

           63   45   74    64   63   75   62   43   67   72    62   62   54   03   45   79   62   64   75   72

     From the above data (80 cases):

1. (5 pts.) construct a frequency table, include relative frequency and cumulative relative frequency.
2. (8 pts.) Construct a histogram and frequency polygon.
3. (2 pts.) Why did you select the intervals you used for your table and graphs?
4. (2 pts.) Is the above distribution skewed? Explain your answer.

(3 pts.) Define skewed. Demonstrate what that would look like graphically. Why is skewed data problematic?

(3 pts.) What is the relation between kurtosis and variability of the data?

(2 pts.) What do measures of central tendency not tell us? Demonstrate this problem graphically.

(11 pts.) Find the mean, median, and mode for all 80 cases in problem #9. Imagine that you are a graduate teaching assistant for the course. What does you tell us the professor about the students' performance in immunology? Be specific. (Note: The instructor uses a grading scale of A=72-80; B=63-71; C=54-62; D=45-53; F=44 or less.)

A. Briefly explain why each of the following would want to review the Financial Statements of a specific business.

1)Potential customers:    

2)Future employees:

B. 3)   Provide any 5 P&L items (Revenue or Expense) and explain how you would budget for them.