Question

MC Qu. 169 Fernwood Company is...

Fernwood Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

Retained earnings balance at the beginning of the year	$	313,000
Cash dividends declared for the year		70,000
Proceeds from the sale of equipment		120,200
Gain on the sale of equipment		6,900
Cash dividends payable at the beginning of the year		30,800
Cash dividends payable at the end of the year		38,000
Net income for the year		154,000

The ending balance in retained earnings is:

Multiple Choice

$397,000.

$313,400.

$409,300.

$467,000.

$403,900.

MC Qu. 137 A machine with a cost of...

A machine with a cost of $142,000, accumulated depreciation of $91,000, and current year depreciation expense of $20,000 is sold for $44,800 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

Multiple Choice

$44,800.

$46,200.

$26,200.

$6,200.

$20,000.

Answer 1

Question . 169
Computation of ending balance of retained earnings :
Particulars					Amount($)
Retained earnings balance at the beginning of the year					$ 313,000.00
Add : net income					$ 154,000.00
Total					$ 467,000.00
less : Cash dividends declared for the year					$ (70,000.00)
Retained earnings balance at the endof the year					$ 397,000.00
Question . 137
Cash flow under investing activities will show the position resulting purchase equipment, plant and machinery , capital assets and sale of equipment, machinery etc..
Amount to be shown under investing activities is :
Sale value of machinery	$44,800
And depreciation , profit / (loss) on sale of asset will be shown under the operating activities.