Cleveland Company paid cash to purchase equipment costing $957,600 this year. Also this year, the company...
Cleveland Company paid cash to purchase equipment costing $957,600 this year. Also this year, the company sold for $196,000 cash, equipment that originally cost $644,000 five years ago. How should these transactions be listed in the statement of cash flows?
-
Braden can combine the transactions and show a decrease to cash for $313,600.
-
Braden can combine the transactions and show a decrease to cash for $761,600.
-
The purchases and the sales of equipment must be shown separately as a decrease to cash for $1,601,600 (purchase) and an increase of $196,000 (sale).
-
The purchases and the sales of equipment must be shown separately as a decrease to cash for $957,600 (purchase) and an increase of $196,000 (sale).
Homework Answers
option is 4
The purchases and the sales of equipment must be shown separately as a decrease to cash for $957,600 (purchase) and an increase of $196,000 (sale)
because Purchase of equipment would be shown as cash outflow (957000) while sale of equipment would be shown as inflow of cash (196000) under the investment activity of cash flow statement.
Add Answer to:
Cleveland Company paid cash to purchase equipment costing
$957,600 this year. Also this year, the company...
• • 40% of purchases are paid for in cash in the month of purchase, and...
• • 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Labor costs are 25% of sales. Other operating costs are $36,000 per month (including $10,000 of depreciation). Both of these are paid in the month incurred. The cash balance on March 1 is $10,000. A minimum cash balance of $6,000 is required at the end of the month. Money can be borrowed in multiples of $1,000. •...
It says that the numbers for cash recieved from sale of investments, cash paid for purchase...
It says that the numbers for cash recieved from sale of
investments, cash paid for purchase of
land, cash paid for purchase of equipment, cash recieved from
sale of common stock and cash paid for dividends is inocrrect. Can
someone please check these?
Dec. 31, 2019 Dec. 31, 2018 Assets Cash $316,580 Accounts receivable (net) 114,680 323,750 $292,800 105,160 311,350 120,620 Inventories 0 166,050 Investments Land Equipment Accumulated depreciation-equipment 357,190 (83,620) $1,194,630 275,270 (74,230) $1,030,970 Total assets Liabilities and Stockholders'...
Apex Company prepared the statement of cash flows for the current year that is shown below:...
Apex Company prepared the statement of cash flows for the current year that is shown below: $ 40,000 22,000 (60,000) (25,000) 9,000 55,000 (12,000) 5,000 (6,000) 34,000 Apex Company Statement of Cash Flows-Indirect Method Operating activities: Net income Adjustments to convert net income to cash basis: Depreciation Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable Net cash provided by (used in) operating activities Investing...
Preparing a Statement of Cash Flows Erie Company reported the following comparative balance sheets: 2019 2018...
Preparing a Statement of Cash Flows Erie Company reported the following comparative balance sheets: 2019 2018 Assets: Cash $33,200 $12,750 Accounts receivable 53,000 44,800 Inventory 29,500 27,500 Prepaid rent 2,200 6,200 Investments (long-term) 17,600 31,800 Property, plant, and equipment 162,000 149,450 Accumulated depreciation (61,600) (56,200) Total assets $235,900 $216,300 Liabilities and Equity: Accounts payable $16,900 $19,500 Interest payable 3,500 4,800 Wages payable 9,600 7,100 Income taxes payable 5,500 3,600 Notes payable 30,400 53,000 Common stock 100,000 68,500 Retained earnings 70,000...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company’s operations: The cash balance on December 1 is $53,400. Actual sales for October and November and expected sales for December are as follows: October November December Cash sales $ 77,000 $ 81,200 $ 87,800 Sales on account $ 435,000 $ 538,000 $ 644,000 Sales on account are collected over a three-month period as follows:...
Current Attempt in Progress The major classifications of activities reported in the statement of cash flows...
Current Attempt in Progress The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. Classify each of the transactions listed below as: 1. Operating activity-add to net income. 2. Operating activity-deduct from net income. 3. Investing activity. Financing activity. 4. 5. Reported as significant noncash activity The transactions are as follows. Transactions Classifications of Activities (a) Issuance of common stock. Purchase of land and building. Redemption of bonds. Sale of equipment. (e) Depreciation...
Weaver Company Comparative Balance Sheet at December31 Last This Year Year Assets Cash Accounts receivable Inventory...
Weaver Company Comparative Balance Sheet at December31 Last This Year Year Assets Cash Accounts receivable Inventory Prepaid expense:s Total current assets Property, plant, and equipment $9 15 240 175 6 436 470 85 385 19 $1,017 840 340 125 10 484 610 93 517 16 Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total...
on- The major classifications of activities reported in the statement of cash flows are operating, investing,...
on- The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. Classify each of the transactions listed below as: 1. Operating activity-add to net income. 2. Operating activity-deduct from net income. port 3. Investing activity. 4. Financing activity. 5. Reported as significant noncash activity The transactions are as follows. Transactions Classifications of Activities Issuance of common stock (b) Purchase of land and building Redemption of bonds. (d) Sale of equipment. le) Depreciation of...
Velo Company Comparative Balance Sheets December 31 Assets 2020 2019 Cash $72,800 $33,200 Accounts receivable 86,500...
Velo Company
Comparative Balance Sheets
December 31
Assets
2020
2019
Cash
$72,800
$33,200
Accounts receivable
86,500
70,700
Inventory
170,200
187,000
Land
72,700
100,700
Equipment
260,700
200,600
Accumulated depreciation—equipment
(65,700
)
(33,500
)
Total
$597,200
$558,700
Liabilities and Stockholders’ Equity
Accounts payable
$35,400
$46,500
Bonds payable
149,800
203,300
Common stock ($1 par)
218,000
173,000
Retained earnings
194,000
135,900
Total
$597,200
$558,700
Additional information:
1.
Net income for 2020 was $103,600.
2.
Cash dividends of $45,500 were declared and paid.
3.
Bonds...
Velo Company Comparative Balance Sheets December 31 Assets 2020 2019 Cash $72,800 $33,200 Accounts receivable 86,500...
Velo Company
Comparative Balance Sheets
December 31
Assets
2020
2019
Cash
$72,800
$33,200
Accounts receivable
86,500
70,700
Inventory
170,200
187,000
Land
72,700
100,700
Equipment
260,700
200,600
Accumulated depreciation—equipment
(65,700
)
(33,500
)
Total
$597,200
$558,700
Liabilities and Stockholders’ Equity
Accounts payable
$35,400
$46,500
Bonds payable
149,800
203,300
Common stock ($1 par)
218,000
173,000
Retained earnings
194,000
135,900
Total
$597,200
$558,700
Additional information:
1.
Net income for 2020 was $103,600.
2.
Cash dividends of $45,500 were declared and paid.
3.
Bonds...
• • 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Labor costs are 25% of sales. Other operating costs are $36,000 per month (including $10,000 of depreciation). Both of these are paid in the month incurred. The cash balance on March 1 is $10,000. A minimum cash balance of $6,000 is required at the end of the month. Money can be borrowed in multiples of $1,000. •...
It says that the numbers for cash recieved from sale of
investments, cash paid for purchase of
land, cash paid for purchase of equipment, cash recieved from
sale of common stock and cash paid for dividends is inocrrect. Can
someone please check these?
Dec. 31, 2019 Dec. 31, 2018 Assets Cash $316,580 Accounts receivable (net) 114,680 323,750 $292,800 105,160 311,350 120,620 Inventories 0 166,050 Investments Land Equipment Accumulated depreciation-equipment 357,190 (83,620) $1,194,630 275,270 (74,230) $1,030,970 Total assets Liabilities and Stockholders'...
Apex Company prepared the statement of cash flows for the current year that is shown below: $ 40,000 22,000 (60,000) (25,000) 9,000 55,000 (12,000) 5,000 (6,000) 34,000 Apex Company Statement of Cash Flows-Indirect Method Operating activities: Net income Adjustments to convert net income to cash basis: Depreciation Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable Net cash provided by (used in) operating activities Investing...
Current Attempt in Progress The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. Classify each of the transactions listed below as: 1. Operating activity-add to net income. 2. Operating activity-deduct from net income. 3. Investing activity. Financing activity. 4. 5. Reported as significant noncash activity The transactions are as follows. Transactions Classifications of Activities (a) Issuance of common stock. Purchase of land and building. Redemption of bonds. Sale of equipment. (e) Depreciation...
Weaver Company Comparative Balance Sheet at December31 Last This Year Year Assets Cash Accounts receivable Inventory Prepaid expense:s Total current assets Property, plant, and equipment $9 15 240 175 6 436 470 85 385 19 $1,017 840 340 125 10 484 610 93 517 16 Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total...
on- The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. Classify each of the transactions listed below as: 1. Operating activity-add to net income. 2. Operating activity-deduct from net income. port 3. Investing activity. 4. Financing activity. 5. Reported as significant noncash activity The transactions are as follows. Transactions Classifications of Activities Issuance of common stock (b) Purchase of land and building Redemption of bonds. (d) Sale of equipment. le) Depreciation of...
Velo Company
Comparative Balance Sheets
December 31
Assets
2020
2019
Cash
$72,800
$33,200
Accounts receivable
86,500
70,700
Inventory
170,200
187,000
Land
72,700
100,700
Equipment
260,700
200,600
Accumulated depreciation—equipment
(65,700
)
(33,500
)
Total
$597,200
$558,700
Liabilities and Stockholders’ Equity
Accounts payable
$35,400
$46,500
Bonds payable
149,800
203,300
Common stock ($1 par)
218,000
173,000
Retained earnings
194,000
135,900
Total
$597,200
$558,700
Additional information:
1.
Net income for 2020 was $103,600.
2.
Cash dividends of $45,500 were declared and paid.
3.
Bonds...
Velo Company
Comparative Balance Sheets
December 31
Assets
2020
2019
Cash
$72,800
$33,200
Accounts receivable
86,500
70,700
Inventory
170,200
187,000
Land
72,700
100,700
Equipment
260,700
200,600
Accumulated depreciation—equipment
(65,700
)
(33,500
)
Total
$597,200
$558,700
Liabilities and Stockholders’ Equity
Accounts payable
$35,400
$46,500
Bonds payable
149,800
203,300
Common stock ($1 par)
218,000
173,000
Retained earnings
194,000
135,900
Total
$597,200
$558,700
Additional information:
1.
Net income for 2020 was $103,600.
2.
Cash dividends of $45,500 were declared and paid.
3.
Bonds...
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