AP-3A

The net income for the year ended on December 31, 2018, for RC Corporation was $120,000. Additional data for the year is provided below.

Loss on retirement of debt $20,000 Purchase of property, plant and equipment 280,000

Depreciation of property, plant and equipment 14,000

Dividends declared 50,000 Decrease in accounts receivable 29,000 Loss on sale of equipment 13,000 Issue of common stock in excess of par value 10,000

Calculate the net cash provided (used) by operating activities using the indirect method.

AP-4A

Ashe Inc. reported the following data for 2018.

Income Statement

Net Income $30,000

Depreciation Expense 4,000

Balance Sheet Increase in Accounts Receivable $9,000

Decrease in Accounts Payable 7,000

Calculate the net cash provided (used) by operating activities.

AP-5A

The net income for the year ended on August 31, 2018 for Wonderstruck Corporation was $147,000. Additional data for the year is provided below.

Purchase of property, plant and equipment	$257,000
Depreciation of equipment	$11,000
Dividends paid	$42,000
Net increase in accounts receivable	$22,000
Loss on sale of property	$17,000
Gain on retirement of debt	$10,000

Calculate the net cash provided (used) by operating activities.

AP-6A

Mellon Incorporated had a net income for 2018 of $320,000. Included on the income statement was a loss on sale of equipment for $5,000, a gain on sale of investments for $15,000, depreciation of $8,000, loss on retirement of debt of $10,000 and interest of $3,000. Calculate the net cash provided (used) by operating activities using the indirect method. Assume that the balances of current assets (except cash) and current liabilities remain the same as last year.

Analysis

Does net income, after being adjusted by the noncash items on the income statement, represent the actual amount of cash received through operating activities by the company during the year?

AP-7A

The following information pertains to Tree Company for the fiscal year 2018.

Purchase of plant and equipment	$35,000
Purchase of longterm investments	$19,000
Increase in accounts receivable	$7,100
Repayment of bonds payable	$12,000
Depreciation of plant and equipment	$10,000

Calculate the net cash provided (used) by investing activities.

AP-8A

The Marking Companys cash account decreased by $20,000. Net cash provided by operating activities was $17,000. Net cash used by investing activities was $22,000. Calculate the net cash provided (used) by financing activities.

AP-9A

The Grading Companys cash account decreased by $14,000. Net cash provided by operating activities was $21,000. Net cash used by investing activities was $22,000. Based on this information, calculate the net cash provided (used) by financing activities.

AP-10A

Allen Woods has just started working as an accountant for Stickla Supplies. Unfortunately, the company had no proper accounting system in place and Allen had to start everything from scratch. He has been provided with some items from the companys balance sheet and income statement for the end of 2018.

Going through the companys purchase receipts and some other financial documents, Allen realized that Stickla purchased $2,500 worth of equipment in 2018. At the end of 2017, the balance of property, plant and equipment was $11,000 and the balance of accumulated depreciation was $2,900. Accounts payable balance was not affected by any investment activities during 2018.

accounts	2018
Property, Plant and Equipment	$10,000
Accumulated Depreciation	$3,600
Accounts Payable	$4,000
Notes Payable, Current Portion	$15,000
Retained Earnings	$5,400
Depreciation Expense	$1,200
Loss on Sale of Equipment	$300

Based on the information provided, help Allen fill the missing information in the table below.

Which section of the statement of cash flows is affected?
How much PPE (book value before deducting accumulated depreciation) was sold in 2018?
What was the accumulated depreciation for the PPE sold?
What was the net book value of the PPE sold?
How much cash was received from the sale?
How much cash was paid out for the purchase?
What was the net change in cash resulting from PPE?