1. Use the following company information to calculate its net cash provided or used by investing activities: (a) Equipment with a book value of $125,000 and an original cost of $220,000 was sold at a gain of $22,000. (b) Paid $49,000 cash for a new truck. (c) Sold land costing $30,000 for $26,000 cash, realizing a $4.000 loss. (d) Purchased treasury stock for $53,000 cash. (e) Long-term investments in stock are sold for S41.000 cash, realizing a gain of $3,500. Cash flows from investing activities: 2. Use the following information to calculate the net cash provided or used by financing activities for the Brooks Corporation: (a) Net income, S26,000. (b) Sold common stock for $8,000 cash. (c) Paid cash dividend of $5,000. (d) Paid bond payable, $15,000. (e) Purchased equipment for $13,000 cash. Cash flows from financing activities: 3. A company is authorized to issue 50,000 shares of $10 par value, 4%, cumulative, fully participating preferred stock and 500,000 shares of $5 par value common stock. Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations: Jan. 10 15 Sold 105,000 shares of common stock for $8 cash per share. Exchanged 10,000 shares of common stock for equipment with a market value of $80,000. Exchanged 500 shares of preferred stock for $6,000 of legal services, incurred during the company's organization. Feb. 1 4. Based on the following income statement and balance sheet for Rashid Corporation, determine the cash flows from operating activities using the indirect method. $504,000 RASHID CORPORATION Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Depreciation expense 42,000 Other operating expenses 125,500 Other gains (losses): Gain on sale of equipment Income before taxes Income tax expense Net income (495,100) 7,200 $ 16,100 (4.800 S 11.300 3. For each of the following independent transactions (a) through (d), prepare the necessary journal entry (a) Declared a $0.40 per share cash dividend on 200,000 shares of preferred stock outstanding. (b) Declared and distributed a 12% stock dividend on 800,000 shares of $5 par value common stock outstanding. Market price per common share on this date was $25. (c) Declared and distributed a 2.for. I stock split on 500,000 shares of S10 par value common stock outstanding (d) Declared and distributed a 30% stock dividend on 400,000 common shares of $5 par value common stock outstanding, Market price per common share on this date was $20. 6. A company was organized in January 2013 and has 60,000 shares of S10 par value, 8% nonparticipating preferred stock outstanding and 45,000 shares of S5 par value common stock outstanding. It has declared and paid cash dividends each year as shown below. Calculate the total dividends distributed to each class of stockholder under each of the assumptions given. Assuming Preferred Stock Is Not Cumulative Assuming Preferred Stock Is Cumulative Preferred Dividend Common Dividend Preferred Dividend Common Dividend Year 2013 2014 2015 2016 2017 2018 Cash Dividends Declared and Paid $40,000 $50,000 S40,000 $60.000 $70,000 $70,000
