Any given transaction may affect a statement of cash flows (using the indirect method) in one...
Any given transaction may affect a statement of cash flows (using the indirect method) in one or more of the following ways:
Cash flows from operating activities
a. Net income will be increased or adjusted upward.
b. Net income will be decreased or adjusted downward.
Cash flows from investing activities
c. Increase as a result of cash inflows.
d. Decrease as a result of cash outflows.
Cash flows from financing activities
e. Increase as a result of cash inflows.
f. Decrease as a result of cash outflows.
The statement of cash flows is not affected
g. Not required to be reported in the body of the statement.
For each transaction listed below, list the letter or letters from above that describe(s) the effect of the transaction on a statement of cash flows for the year ending December 31, 2013. (Ignore any income tax effects.) The first question has been answered for you.
f____ 1. Preferred stock with a carrying value of $44,000 was redeemed for $50,000 on January 1, 2013.
_____ 2. Uncollectible accounts receivable in the amount of $3,000 were written off against the allowance for doubtful accounts balance of $12,200 on December 31, 2013.
_____ 3. Machinery which originally cost $3,000 and has a book value of $1,800 is sold for $1,400 on December 31, 2013.
_____ 4. Land is acquired through the issuance of bonds payable on July 1, 2013.
_____ 5. 1,000 shares of stock, stated value $10 per share, are issued for $25 per share in 2013.
_____ 6. An appropriation of retained earnings for treasury stock in the amount of $35,000 is established in 2013.
_____ 7. A cash dividend of $8,000 is paid on December 31, 2013.
_____ 8. The portfolio of long-term investments (available-for-sale) is at an aggregate market value higher than aggregate cost at December 31, 2013.
Homework Answers
1. Preferred stock with a carrying value of $44,000 was redeemed
for $50,000 on January 1, 2013.
Answer is f
Since cash is used for redeeming
2. Uncollectible accounts receivable in the amount of $3,000
were written off against the allowance for doubtful accounts
balance of $12,200 on December 31, 2013.
Answer is g
Non cash
3. Machinery which originally cost $3,000 and has a book value
of $1,800 is sold for $1,400 on December 31, 2013.
Answer is A, and C
Since loss on sale will be added back, and cash received on
sale
4. Land is acquired through the issuance of bonds payable on
July 1, 2013.
Answer is g
Since it is non cash investing and financing activity
5. 1,000 shares of stock, stated value $10 per share, are issued
for $25 per share in 2013.
Answer is E
Cash received in financing
6. An appropriation of retained earnings for treasury stock in
the amount of $35,000 is established in 2013.
Answer is g
Cash not involved
7. A cash dividend of $8,000 is paid on December 31, 2013.
Answer is F
8. The portfolio of long-term investments (available-for-sale)
is at an aggregate market value higher than aggregate cost at
December 31, 2013.
Answer is G.
Add Answer to:
Any given transaction may affect a statement of cash flows
(using the indirect method) in one...
Prepare the statement of cash flows using the indirect method. (List cash outflows and any decrease...
Prepare the statement of cash flows using the indirect method.
(List cash outflows and any decrease in cash as negative
amounts.)
The balance sheet for Plasma Screens Corporation, along with
additional information, are provided below:
Additional Information for 2018:
1. Net income is $65,000.
2. The company purchases $106,000 in equipment.
3. Depreciation expense is $158,000.
4. The company repays $112,500 in notes payable.
5 .The company declares and pays a cash dividend of $23,000.
Prepare the statement of cash...
Statement of cash flows-indirect method Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions The...
Statement of cash flows-indirect method Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2018 and 2017, is as follows: Dec 31, 20Y8 Dec 31, 2047 $80,000.00 $100,000.00 275,000.00 300,000.00 510,000.00 400,000.00 15,000.00 10,000.00 1,070,000.00 750,000.00 (200,000.00) (160,000.00) $1,750,000.00 $1,400,000.00 Assets 3 Cash 4 Accounts receivable (net) 5 Inventories 6 Prepaid expenses 7 Equipment 8 Accumulated depreciation equipment 9 Total assets Liabilities and Stockholders' Equity 11 Accounts...
hello please help! Statement of Cash Flows-Indirect Method The following balances are available for Chrisman Company:...
hello please help!
Statement of Cash Flows-Indirect Method The following balances are available for Chrisman Company: Cash Accounts receivable Inventory Prepaid rent Land Plant and equipment Accumulated depreciation Totals December 31 2017 2016 $8,600 $10,800 21,500 16,100 17,100 28,600 9,700 6,500 80,600 80,600 430,000 322,500 (69,900) (32,300) $497,600 $432,800 Accounts payable Income taxes payable Short-term notes payable Bonds payable Common stock Retained earnings Totals $12,900 3,200 37,600 81,000 215,000 147,900 $497,600 $10,800 5,400 26,900 108,000 161,300 120,400 $432,800 Bonds were...
Statement of Cash Flows-Indirect Method The comparative balance sheet of Harris Industries Inc. at December 31,...
Statement of Cash Flows-Indirect Method The comparative balance sheet of Harris Industries Inc. at December 31, 2014 and 2043, is as follows: Dec. 31, Dec. 31, 2014 2013 Assets Cash Accounts receivable (net) Inventories Prepaid expenses $443,240 665,280 887,880 $360,920 592,200 1,022,560 31,640 25,200 Land 302,400 302,400 Buildings 1,713,600 (466,200) 1,134,000 (414,540) Accumulated depreciation-buildings Machinery and equipment Accumulated depreciation-machinery and equipment 781,200 (214,200) 106,960 $4,251,800 781,200 (191,520) 112,000 $3,724,420 Patents Total assets $837,480 32,760 Liabilities and Stockholders' Equity Accounts payable...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Lund Corporation to (a)...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Lund Corporation to (a) prepare a statement of cash flows using the indirect method and (b) compute Lund's operating-cash-flow-to-current-liabilities ratio. Accounts payable increase Accounts receivable increase Accrued liabilities decrease Amortization expense Cash balance, January 1 $11,000 4,000 3,000 7,000 22,000 16,000 1,000 90,000 60,000 35,000 17,000 29,000 5,000 13,000 78,000 3,000 120,000 Cash balance, December 31 Cash paid as dividends Cash paid to purchase land Cash paid to...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremont Corporation to prepare...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremont Corporation to prepare a statement of cash flows using the indirect method: Accounts payable increase $14,000 Accounts receivable increase 7,000 Accrued liabilities decrease 5,000 Amortization expense 31,000 Cash balance, January 1 21,000 Cash balance, December 31 141,000 Cash paid as dividends 41,000 Cash paid to purchase land 81,000 Cash paid to retire bonds payable at par 70,000 Cash received from issuance of common stock 75,000 Cash received...
Help me fill in the blanks! Prepare a statement of cash flows using the indirect method....
Help me fill in the blanks! Prepare a statement of cash flows
using the indirect method.
ROJAS CORPORATION Comparative Balance Sheets December 31 2020 2019 Cash Accounts receivable Land Buildings Accumulated depreciation-buildings $10,700 23,800 26,300 70,100 (10,700) $14,500 20,800 19,600 70,100 (15,000) Total $110,000 $120,200 Accounts payable Common stock Retained earnings $11,800 75,000 23,200 $110,000 $28,300 73,400 18,500 $120,200 Total Additional information 1. Net income was $22,800. Dividends declared and paid were $18,100 2. No noncash investing and financing activities...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremont Corporation to prepare...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremont Corporation to prepare a statement of cash flows using the indirect method: Accounts payable increase $14,000 Accounts receivable increase 7,000 Accrued liabilities decrease 5,000 Amortization expense 31,000 Cash balance, January 1 21,000 Cash balance, December 31 141,000 Cash paid as dividends 41,000 Cash paid to purchase land 81,000 Cash paid to retire bonds payable at par 70,000 Cash received from issuance of common stock 75,000 Cash received...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare a statement of cash flows using the indirect method: Accounts payable decrease $7,000 Accounts receivable increase 9,800 Wages payable decrease 4,200 Amortization expense 22.400 Cash balance, January 1 42,000 Cash balance, December 31 9,800 Cash paid as dividends 8,400 Cash paid to purchase land 140,000 Cash paid to retire bonds payable at par 105,000 Cash received from issuance of common stock 63,000 Cash received...
Stuart Brands, Inc., presents its statement of cash flows using the indirect method. The following accounts...
Stuart Brands, Inc., presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Stuart's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 Accounts $21,300 $28,000 receivable Merchandise 57,400 50,600 inventory Prepaid 18,000 24,500 insurance Accounts payable 23,900 19,100 Salaries payable 4,750 4,150 Unearned service 750 2,800 revenue The Year 2 income statement is shown below: Income Statement Sales $ 610,000 Cost of goods sold (371,000)...
Prepare the statement of cash flows using the indirect method.
(List cash outflows and any decrease in cash as negative
amounts.)
The balance sheet for Plasma Screens Corporation, along with
additional information, are provided below:
Additional Information for 2018:
1. Net income is $65,000.
2. The company purchases $106,000 in equipment.
3. Depreciation expense is $158,000.
4. The company repays $112,500 in notes payable.
5 .The company declares and pays a cash dividend of $23,000.
Prepare the statement of cash...
Statement of cash flows-indirect method Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2018 and 2017, is as follows: Dec 31, 20Y8 Dec 31, 2047 $80,000.00 $100,000.00 275,000.00 300,000.00 510,000.00 400,000.00 15,000.00 10,000.00 1,070,000.00 750,000.00 (200,000.00) (160,000.00) $1,750,000.00 $1,400,000.00 Assets 3 Cash 4 Accounts receivable (net) 5 Inventories 6 Prepaid expenses 7 Equipment 8 Accumulated depreciation equipment 9 Total assets Liabilities and Stockholders' Equity 11 Accounts...
hello please help!
Statement of Cash Flows-Indirect Method The following balances are available for Chrisman Company: Cash Accounts receivable Inventory Prepaid rent Land Plant and equipment Accumulated depreciation Totals December 31 2017 2016 $8,600 $10,800 21,500 16,100 17,100 28,600 9,700 6,500 80,600 80,600 430,000 322,500 (69,900) (32,300) $497,600 $432,800 Accounts payable Income taxes payable Short-term notes payable Bonds payable Common stock Retained earnings Totals $12,900 3,200 37,600 81,000 215,000 147,900 $497,600 $10,800 5,400 26,900 108,000 161,300 120,400 $432,800 Bonds were...
Statement of Cash Flows-Indirect Method The comparative balance sheet of Harris Industries Inc. at December 31, 2014 and 2043, is as follows: Dec. 31, Dec. 31, 2014 2013 Assets Cash Accounts receivable (net) Inventories Prepaid expenses $443,240 665,280 887,880 $360,920 592,200 1,022,560 31,640 25,200 Land 302,400 302,400 Buildings 1,713,600 (466,200) 1,134,000 (414,540) Accumulated depreciation-buildings Machinery and equipment Accumulated depreciation-machinery and equipment 781,200 (214,200) 106,960 $4,251,800 781,200 (191,520) 112,000 $3,724,420 Patents Total assets $837,480 32,760 Liabilities and Stockholders' Equity Accounts payable...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Lund Corporation to (a) prepare a statement of cash flows using the indirect method and (b) compute Lund's operating-cash-flow-to-current-liabilities ratio. Accounts payable increase Accounts receivable increase Accrued liabilities decrease Amortization expense Cash balance, January 1 $11,000 4,000 3,000 7,000 22,000 16,000 1,000 90,000 60,000 35,000 17,000 29,000 5,000 13,000 78,000 3,000 120,000 Cash balance, December 31 Cash paid as dividends Cash paid to purchase land Cash paid to...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremont Corporation to prepare a statement of cash flows using the indirect method: Accounts payable increase $14,000 Accounts receivable increase 7,000 Accrued liabilities decrease 5,000 Amortization expense 31,000 Cash balance, January 1 21,000 Cash balance, December 31 141,000 Cash paid as dividends 41,000 Cash paid to purchase land 81,000 Cash paid to retire bonds payable at par 70,000 Cash received from issuance of common stock 75,000 Cash received...
Help me fill in the blanks! Prepare a statement of cash flows
using the indirect method.
ROJAS CORPORATION Comparative Balance Sheets December 31 2020 2019 Cash Accounts receivable Land Buildings Accumulated depreciation-buildings $10,700 23,800 26,300 70,100 (10,700) $14,500 20,800 19,600 70,100 (15,000) Total $110,000 $120,200 Accounts payable Common stock Retained earnings $11,800 75,000 23,200 $110,000 $28,300 73,400 18,500 $120,200 Total Additional information 1. Net income was $22,800. Dividends declared and paid were $18,100 2. No noncash investing and financing activities...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare a statement of cash flows using the indirect method: Accounts payable decrease $7,000 Accounts receivable increase 9,800 Wages payable decrease 4,200 Amortization expense 22.400 Cash balance, January 1 42,000 Cash balance, December 31 9,800 Cash paid as dividends 8,400 Cash paid to purchase land 140,000 Cash paid to retire bonds payable at par 105,000 Cash received from issuance of common stock 63,000 Cash received...
Stuart Brands, Inc., presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Stuart's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 Accounts $21,300 $28,000 receivable Merchandise 57,400 50,600 inventory Prepaid 18,000 24,500 insurance Accounts payable 23,900 19,100 Salaries payable 4,750 4,150 Unearned service 750 2,800 revenue The Year 2 income statement is shown below: Income Statement Sales $ 610,000 Cost of goods sold (371,000)...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago