Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Below is an example of an incorrectly prepared statement of cash flows. The descriptions of the activities are correct. Cash from operating activities Net Income

Below is an example of an incorrectly prepared statement of cash flows. The descriptions of the activities are correct. Cash from operating activities Net Income $ 60,000 Depreciation (4,000) Increase in accounts receivable (2,000) Increase in deferred tax liability (1,000) $ 53,000 Cash from investing activities Purchase of marketable securities $(48,000) Dividends paid 1,500 $(46,500) Cash from financing activities Increase in Short-term debt trade $ (500) Increase in Long-term debt bonds Payable (2,500) $ (3,000) Increase in cash $ 3,500 12. The correct cash flows from operating activities is: A) 65,500 B) 63,500 C) 53,500 D) none of the above 13. The correct cash flows from investing activities is: A) ($41,000) B) ($45,500) C) ($48,000) D) none of the above 14. The correct cash flows from financing activities is: A) ($4,500) B) $3,000 C) $1,000 D) none of the above 15. The correct change in cash for the year is: A) $4,000 B) $15,000 C) $16,500 D) none of the abov

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Governmental And Nonprofit Accounting Theory And Practice

Authors: Robert J Freeman, Craig D Shoulders, Gregory S Allison, Terry K Patton, Robert Smith,

9th Edition

0132552728, 9780132552721

More Books

Students also viewed these Accounting questions

Question

An improvement in the exchange of information in negotiations.

Answered: 1 week ago

Question

1. Effort is important.

Answered: 1 week ago