Manufacturers and merchandisers can apply just-in-time (JIT) to their inventory management. Apple wants to know the impact of a JIT inventory system on operating cash flows. Review Apple's statement of cash flows in Appendix A to answer the following.

Required

1. Identify the impact on operating cash nows (increase or decrease) for changes in inventory levels (increase or decrease) for each of the fiscal years ended September 30, 2017, and September 24, 2016.

2. What impact (increase or decrease) would a JIT inventory system have on Apple's (a) inventory and (b) operating cash flows?

York Instruments completed the following transactions and events involving its machinery. 2014 Jan. 1$~~~$ Paid $\$ 107,800$ cash plus $\$ 6,470$ in sales tax for a new machine. The machine is estimated to have a six-year life and a $\$ 9,720$ salvage value. Dec. 31$~~~$ Recorded annual straight-line depreciation on the machinery. 2015 Dec. 31 $~~~$ Due to new information obtained earlier in the year, the machine's estimated useful life was changed from six to four years, and the estimated salvage value was increased to $\$ 14,345$. Recorded annual straight-line depreciation on the machinery. 2016 Dec. 31 $~~~$Recorded annual straight-line depreciation on the machinery. Dec. 31$~~~$ Sold the machine for $\$ 25,240$ cash. Required Prepare journal entries to record these transactions and events.

Calculate the item below for the statement of cash flows:

• Beginning and ending Retained Earnings were $37,000 and$72,000, respectively. Net income for the period was $63,000, and stock dividends were$9,000. How much were the cash dividends?

Does the recognition of depreciation expense affect cash flows? Why or why not?

The Hudson Corporation makes an investment of $\$24,000$ that provides the following cash flow. In this problem, would you make the same decision under both parts a and b?

Refer to the data presented in the preceding exercise. Prepare Winding Road Cellular's statement of cash flows using the indirect method for the year ended April 30, 2018. Assume beginning and ending Cash are $48,000 and$52,200, respectively.

Which of the following is a cash outflow for a financing activity on the statement of cash flows?

A. Purchase of long-term investments, such as the stock of another company

B. Loans made to another party

C. Purchase of treasury stock

D. Purchase of land

Cash Social Security distributions were $\$ 35$ million, or $\$ 0.035$ billion, in 1940. This amount has increased exponentially to $\$ 683$ billion in 2009. Assuming the exponential growth model applies: $\\$ a) Find the exponential growth rate$k$.$

$$b) Find the exponential growth function.$$

$$c) Estimate the total cash distributions in 1965, 1995, and in 2015.$$

$d) In what year will the cash benefits reach$$2$ trillion?

What happens to the monetary expansion if people decide to hold cash in their pockets?

You can buy a product for $750 cash or pay$150 down and the balance in 12 monthly payments of $61.25. What is the installment price? By what percent would your installment price be greater than the cash price?

What is the advantage of using the direct method to present the statement of cash flows?

Contrast the effects of a cash dividend and a stock dividend on a corporation’s balance sheet.

Your restaurant's balance sheet for December 31 indicates that on that date you had $10,000 in cash,$20,000 in food and supplies, and that the building and land owned by the restaurant was valued at $150,000. The restaurant owed its food supplier$30,000 and had a $70,000 bank loan outstanding. What is the value for owner's equity displayed on the balance sheet?

On January 1, 2014, Ferris Inc. had these stockholders’ equity balances.

Common Stock, $5 par (2,000,000 shares authorized, 600,000
 shares issued and outstanding)$3,000,000
Paid-in Capital in Excess of Par Value                           1,800,000
Retained Earnings                                                  810,000

During 2014, the following transactions and events occurred.

1. Issued 75,000 shares of $5 par value common stock for$9 per share.
2. Issued 60,000 shares of common stock for cash at $9.50 per share.
3. Purchased 25,000 shares of common stock for the treasury at$10 per share.
4. Declared and paid a cash dividend of $284,000.
5. Earned net income of$860,000.

Instructions

Prepare the stockholders’ equity section of the balance sheet at December 31, 2014.