Suppose an enterprise received a cash inflow for the sale of a machine. The enterprise intends...
Suppose an enterprise received a cash inflow for the sale of a
machine. The enterprise intends to purchase a newer model in the
near future. How would you classify this transaction based upon the
accruals classification?
A) working capital accruals
B) non-current operating accruals
C) financing accruals
Homework Answers
Answer: B) Non-current operating accruals.
As the cash flow occurs from sale of a fixed asset, it is related to the investing activities of the business. Non-current operating accruals are generated by a firm's investing activities, which relate to the acquisition and disposal of a firm's non-current assets
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Suppose an enterprise received a cash inflow for the sale of a
machine. The enterprise intends...
|OPERATING PROFIT INFLOW DECREASE INVESTING INCREASE FINANCING OUTFLOW CASH NON-CASH A statement of cash flows is...
|OPERATING PROFIT INFLOW DECREASE INVESTING INCREASE FINANCING OUTFLOW CASH NON-CASH A statement of cash flows is a useful report that discloses all movements during the period. Classification of cash flows into operating, and financing activities provides insight into where cash came from and what it was spent on. It is important that cash flows from activities is positive, as it indicates that sufficient cash was received from business operations to cover ongoing business outflows. A significant cash under operating activities...
Tiger Trade has the following cash transactions for the period. Accounts Cash received from sale of...
Tiger Trade has the following cash transactions for the period. Accounts Cash received from sale of products to customers Cash received from the bank for long-term loan Cash paid to purchase factory equipment Cash paid to merchandise suppliers Cash received from the sale of an unused warehouse Cash paid to workers Cash paid for advertisement Cash received for sale of services to customers Cash paid for dividends to stockholders Amounts $ 31,500 36,500 (41,500) (10,300) 11,300 (22,300) (2,300) 21,500 (4,300)...
Tiger Trade has the following cash transactions for the period. Accounts Cash received from sale of...
Tiger Trade has the following cash transactions for the period. Accounts Cash received from sale of products to customers Cash received from the bank for long-term loan Cash paid to purchase factory equipment Cash paid to merchandise suppliers Cash received from the sale of an unused warehouse Cash paid to workers Cash paid for advertisement Cash received for sale of services to customers Cash paid for dividends to stockholders Amounts $ 35,500 40,500 (45,500) (11,100) 12,100 (23,100) (3,100) 25,500 (5,100)...
2. . 3. Rowdy's Restaurants cash flow ($ in millions) Cash received from: Customers Interest on...
2.
.
3.
Rowdy's Restaurants cash flow ($ in millions) Cash received from: Customers Interest on investments Sale of land Sale of Rowdy's capital stock Issuance of debt securities $3,450 310 210 820 3,100 Cash paid for: Interest on debt Income tax Debt principal reduction Purchase of equipment Purchase of inventory Dividends on capital stock Operating expenses $ 410 190 2,600 6,200 2,100 530 720 Rowdy's would report net cash inflows outflows) from investing activities in the amount of: Rowdy's...
Tiger Trade has the following cash transactions for the period. Accounts Cash received from sale of...
Tiger Trade has the following cash transactions for the period. Accounts Cash received from sale of products to customers Cash received from the bank for long-term loan Cash paid to purchase factory equipment Cash paid to merchandise suppliers Cash received from the sale of an unused warehouse Cash paid to workers Cash paid for advertisement Cash received for sale of services to customers Cash paid for dividends to stockholders Amounts $ 39,000 44,000 (49,000) (11,800) 12,800 (23,800) (3,800) 29,000 (5,800)...
After Tax Cash Flows Decades Lab plans to purchase a new machine. The cost of the...
After Tax Cash Flows Decades Lab plans to purchase a new machine. The cost of the machine is $200,000 and is expected to have a useful life of 5 years. Depreciation is calculated using straight line with no salvage value. Savings in cash operating costs are expected to be $60,000 per year. However, additional working capital of $30,000 is required throughout the life of the machine, but will be recovered at the end of the machine's useful life. At the...
QS 12-1 Transaction classification by activity LO C1 Classify the following cash flows as either operating,...
QS 12-1 Transaction classification by activity LO C1 Classify the following cash flows as either operating, investing, or financing activities assume indirect method. 1. Paid cash for property taxes on building. 2. Received cash dividends from investments. 3. Paid accounts payable with cash. 4. Sold stock investments for cash. 5. Paid cash for a building. 6. Cash paid to purchase long-term investments. 7. Received cash from long-term debt issuance. Issued preferred stock for cash. 9. Issued common stock for cash....
Classification of Transactions ____ 13. Anna Dimetros is the bookkeeper for Russia Imports, Inc. (RII), a...
Classification of Transactions ____ 13. Anna Dimetros is the bookkeeper for Russia Imports, Inc. (RII), a New York City–based company. Anna has collected the following cash flow information about RII for the most current year of operations. From the information provided, classify each transaction for RII as ONE of the following: Operating, Investing or Financing Cash paid for wages of employees . . . . . . . . . . . . . . .. . $134,600 ___________________ Cash...
1. Working capital needed for a new project is treated: a. as a cash inflow...
1. Working capital needed for a new project is treated: a. as a cash inflow now and as a cash outflow when the project ends. b. as a cash outflow now and as a cash inflow when the project ends. c. only as a cash outflow now. 2. Which of the following is not an example of a cash outflow for a proposed machine purchase? a. Salvage value at the end of its useful life b. Initial investment (cost)...
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'...
|OPERATING PROFIT INFLOW DECREASE INVESTING INCREASE FINANCING OUTFLOW CASH NON-CASH A statement of cash flows is a useful report that discloses all movements during the period. Classification of cash flows into operating, and financing activities provides insight into where cash came from and what it was spent on. It is important that cash flows from activities is positive, as it indicates that sufficient cash was received from business operations to cover ongoing business outflows. A significant cash under operating activities...
Tiger Trade has the following cash transactions for the period. Accounts Cash received from sale of products to customers Cash received from the bank for long-term loan Cash paid to purchase factory equipment Cash paid to merchandise suppliers Cash received from the sale of an unused warehouse Cash paid to workers Cash paid for advertisement Cash received for sale of services to customers Cash paid for dividends to stockholders Amounts $ 31,500 36,500 (41,500) (10,300) 11,300 (22,300) (2,300) 21,500 (4,300)...
Tiger Trade has the following cash transactions for the period. Accounts Cash received from sale of products to customers Cash received from the bank for long-term loan Cash paid to purchase factory equipment Cash paid to merchandise suppliers Cash received from the sale of an unused warehouse Cash paid to workers Cash paid for advertisement Cash received for sale of services to customers Cash paid for dividends to stockholders Amounts $ 35,500 40,500 (45,500) (11,100) 12,100 (23,100) (3,100) 25,500 (5,100)...
2.
.
3.
Rowdy's Restaurants cash flow ($ in millions) Cash received from: Customers Interest on investments Sale of land Sale of Rowdy's capital stock Issuance of debt securities $3,450 310 210 820 3,100 Cash paid for: Interest on debt Income tax Debt principal reduction Purchase of equipment Purchase of inventory Dividends on capital stock Operating expenses $ 410 190 2,600 6,200 2,100 530 720 Rowdy's would report net cash inflows outflows) from investing activities in the amount of: Rowdy's...
Tiger Trade has the following cash transactions for the period. Accounts Cash received from sale of products to customers Cash received from the bank for long-term loan Cash paid to purchase factory equipment Cash paid to merchandise suppliers Cash received from the sale of an unused warehouse Cash paid to workers Cash paid for advertisement Cash received for sale of services to customers Cash paid for dividends to stockholders Amounts $ 39,000 44,000 (49,000) (11,800) 12,800 (23,800) (3,800) 29,000 (5,800)...
After Tax Cash Flows Decades Lab plans to purchase a new machine. The cost of the machine is $200,000 and is expected to have a useful life of 5 years. Depreciation is calculated using straight line with no salvage value. Savings in cash operating costs are expected to be $60,000 per year. However, additional working capital of $30,000 is required throughout the life of the machine, but will be recovered at the end of the machine's useful life. At the...
QS 12-1 Transaction classification by activity LO C1 Classify the following cash flows as either operating, investing, or financing activities assume indirect method. 1. Paid cash for property taxes on building. 2. Received cash dividends from investments. 3. Paid accounts payable with cash. 4. Sold stock investments for cash. 5. Paid cash for a building. 6. Cash paid to purchase long-term investments. 7. Received cash from long-term debt issuance. Issued preferred stock for cash. 9. Issued common stock for cash....
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'...
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