HomeworkLib
Question

All of the following would be considered investing activities except: purchase of 25% interest in the...

All of the following would be considered investing activities except:

purchase of 25% interest in the stock of a supplier.

sale of land for cash.

receipt of cash dividends from investments.

purchase of equipment for cash.

"Dolan Company reports its income from investments under the equity method and recognized income of $25,000 from its investment in Moss Co. during the current year, even though no dividends were declared or paid by Moss during the year. On Dolan's statement of cash flows (indirect method), the $25,000 should"

not be shown.

be shown as a deduction from net income in the cash flows from operating activities section.

be shown as cash inflow from investing activities.

be shown as cash outflow from financing activities.
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

1) Answer is Option c.

Receipt of cash dividends from investments would not be considered as an investing activity.

2) Answer is Option b.

In Dolands cash flow the $25000 should be shown as a deduction from net income in the cash flows from operating activities section.

Thank you.

0 0
Add a comment
Know the answer?
Add Answer to:
All of the following would be considered investing activities except: purchase of 25% interest in the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Which of the following would appear in the investing activities section of the statement of cash...

    Which of the following would appear in the investing activities section of the statement of cash flows? Which of the following would appear in the investing activities section of the statement of cash flows? Multiple Choice Cash inflow from interest revenue Cash outflow for the purchase of land Cash outflow for the purchase of supplies Cash inflow from issuance of common stock

  • Cash Flows from Investing Activities would involve all of the following except: Select one: A. The...

    Cash Flows from Investing Activities would involve all of the following except: Select one: A. The proceeds from the sale of equipment B. The receipt of interest income on short-term investments C. The purchase of buildings D. The purchase of marketable securities

  • For the current year, Klay Corporation reports the following information: Net cash inflows from investing activities:...

    For the current year, Klay Corporation reports the following information: Net cash inflows from investing activities: $ 40,000 Net cash inflows from financing activities: $ 45,000 Cash at the beginning of the year: $ 340,000 Cash at the end of the year: $ 420,000 What was the company’s cash flows from operating activities? A cash inflow of $5,000 A cash inflow of $15,000 A cash outflow of $5,000 A cash outflow of $15,000

  • Investing and Financing Cash Flows The following information was obtained from Melville Company's comparative balance sheet....

    Investing and Financing Cash Flows The following information was obtained from Melville Company's comparative balance sheet. End of Year Beginning of Year Cash $19,000 $9,000 Accounts receivable 50,000 35,000 Inventory 55,000 49,000 Prepaid rent 6,000 8,000 Long-term investments 21,000 32,000 Plant assets 140,000 106,000 Accumulated depreciation (42,000) (32,000) Accounts payable 24,000 22,000 Income tax payable 4,000 6,000 Common stock 127,000 92,000 Retained earnings 106,000 91,000 Capital expenditures 15,200 Assume that Melville Company’s income statement showed depreciation expense of $10,000, a...

  • i need help finding question 3. but it will be helpfull too if you can help...

    i need help finding question 3. but it will be helpfull too if you can help with all 3. 3) In preparing its cash flow statements for the year ended December 31, year 7, a company collected the following data:    Proceeds from the sale of the company’s own stock            $30,000    Payment to acquire shares of another company’s common stock          2,400    Dividends paid to the company’s own shareholders               15,200  ...

  • Brief Exercise 17-01 Each of the items below must be considered in preparing a statement of...

    Brief Exercise 17-01 Each of the items below must be considered in preparing a statement of cash flows for Baskerville Co. for the year ended December 31, 2020. For each item, state how it should be shown in the statement of cash flows for 2020 if the indirect method is used. (a) Issued bonds for $200,000 cash. Cash Outflow from Financing ActivityCash Outflow from Operating ActivityCash Inflow from Operating ActivityCash Inflow from Financing ActivityCash Outflow from Investing ActivityCash Inflow From...

  • c an increase of $$1,000 from investing activities d an increase of $46,000 from investing activities and an additi...

    c an increase of $$1,000 from investing activities d an increase of $46,000 from investing activities and an addition to net income of $5,000 26. Cash paid for equipment would be reported in the statement of cash flows in a the cash flows from operating activities section b. the cash flows from financing activities section c. the cash flows from investing activities section d a separate schedule 27. Which of the following types of transactions would be reported as a...

  • Which of the following is a noncash investing and financing activity? payment of a cash dividend...

    Which of the following is a noncash investing and financing activity? payment of a cash dividend payment of a six-month note payable purchase of merchandise inventory on account d i nce of common stock to acquire Land 10. A company purchases equipement for $32,000 cash. This transaction should be shown on the statement of cash flows under a investing activities h financing activities C oncach investing and financing activities d. operating activities 11. Cash flow per share is a required...

  • Please match the term with the explanation. Each term and each explanation is used only once....

    Please match the term with the explanation. Each term and each explanation is used only once. Cash inflow from investing activities Cash outflow from financing activities Reports cash receipts and cash payments that increase or decrease long-term assets Cash outflow from investing activities Calculated by combining the net cash flows from operating activities, net cash flows from investing activities and net cash flows from financing activities Cash inflow from financing activities Purchase of equipment financed by a long term note...

  • Paragraph Styles Ch.4 In-class exercises Topic: Cash flow activities LO: 1 1. In which of the...

    Paragraph Styles Ch.4 In-class exercises Topic: Cash flow activities LO: 1 1. In which of the three activity categories of a statement of cash flows would each of the following items appear and do they represent a cash inflow or cash outflow? Use the following abbreviations: Op Out = Operating Cash Outflow Op In = Operating Cash Inflow Inv Out = Investing Cash Outflow Inv In = Investing Cash Inflow Fin Out = Financing Cash Outflow Fin In = Financing...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT