Cash Flow

Land transactions on the statement of cash flows

Sering Double Corporation purthased land for $$510,000.$ Iater in the year, the company

sold lind with a book value of $$217,500$ fir $$165,000.$ How are the effects of these trans$-$

wetions rejuriel on the staiterient of cash flows

Two answers

$5$a$)$ How is Tha loss on the sals use to arjust NI $($under what section$)?$

$5$b$)$ How arathe sale and then the pkechasa reported $($What section$)?$

Gash recelved from customers $-$ direct method

Sales reparted on the income Nalement were $\frac{\text{\$}}{50},000.$ The accounts receivable balance increased $$47,000$ ever the year. Determine the amount of easly rectived from custoners.

One answar

$7$

Cash payments for merchandise$-$direct method

Cost of merchandise sold reported on the income statement was $$360,000.$ The accouncs

payable balance decreased $$17,800,$ and the imeniony bolance decreased by $$28,000$over

the year. Determine the amount of chst paid for mercheritise.

Men adjust for Change in A$)P^2=$Cash Paid This pariod.

Nota$-$This is Tha more challenging of The five questions!

Determining cash payments to stochholders The comparative butance sliect inclicates dividends payable of $$74\mathrm{.}300$ at the begiruning of the year and $$65,000$ at the end of the year. What was the amount of cush payoners to stockhoklen during the year?

D$)$ Hixt: Make a T account of Dwidends Payablate,

post Beg, Erding, $a-4$ plus activity. $T7is$

debit amount is the answir.

Reporting changes in equipment on statement of cash flows

Aistralysis of the general ledger accounts indicates that office equipment, which cout $$89,000$ and on which acrumulated depreciation totaled $$36,000$ on the date of sale, was on the saiement of cash floss.

$9$ a$)$ How sera tha proceeds reputus $($what sectin$)?$

$9$ b$)$ Detarmine The loss on This sala. How is This