Classify the following cash flows as either operating, investing, or financing activities (assume indirect method) 1 Paid accounts payable with cash 2 Paid short term debt with cash 3 Paid cash for a building 4 Received cash from the sale of property at a loss 5 Paid cash for rent 6 Paid interest on the debt 7 Paid cash for rent 8 Paid cash for utilities 9 Paid cash for salaries 10 Received cash dividends from investments Fitz Company reports the following information Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2015 (Amounts to be deducted should be indicated with a minus sign ) Selected 2015 Income Statement Data Selected Year End 2015 Balance Sheet Data Net income $382,000 Accounts receivable decrease $42,700 Depreciation expense 49,200 Inventory decrease 47,500 Amortization expense 8,700 Prepaid expenses increase 5,400 Gain on sale of plant assets 7,900 Accounts payable decrease 10,200 Salaries payable increase 1,300 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities a Equipment with a book value of $79,000 and an original cost of $165,000 was sold at a loss of $31,000 b Paid $115,000 cash for a new truck c Sold land costing $320,000 for $400,000 cash, yielding a gain of $80,000 d Long term investments in stock were sold for $95,600 cash, yielding a gain of $15,500 Use the above information to determine this company's cash flows from investing activities (Amounts to be deducted should be indicated with a minus sign ) Cash flows from investing activities a Net income was $473,000 b Issued common stock for $79,000 cash c Paid cash dividend of $15,000 d Paid $120,000 cash to settle a note payable at its $120,000 maturity value e Paid $124,000 cash to acquire its treasury stock f Purchased equipment for $88,000 cash Use the above information to determine this company's cash flows from financing activities (Amounts to be deducted should be indicated with a minus sign ) Cash flows from financing activities

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 01, 2024

Classify the following cash flows as either operating, investing, or financing activities. (assume indirect method) 1. Paid accounts payable with cash. 2. Paid short-term debt

Classify the following cash flows as either operating, investing, or financing activities. (assume indirect method)


1.	Paid accounts payable with cash.
2.	Paid short-term debt with cash.
3.	Paid cash for a building.
4.	Received cash from the sale of property at a loss.
5.	Paid cash for rent.
6.	Paid interest on the debt.
7.	Paid cash for rent.
8.	Paid cash for utilities.
9.	Paid cash for salaries.
10.	Received cash dividends from investments.

Fitz Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2015. (Amounts to be deducted should be indicated with a minus sign.)

Selected 2015 Income Statement Data		Selected Year-End 2015 Balance Sheet Data

Net income	$382,000	Accounts receivable decrease	$42,700
Depreciation expense	49,200	Inventory decrease	47,500
Amortization expense	8,700	Prepaid expenses increase	5,400
Gain on sale of plant assets	7,900	Accounts payable decrease	10,200
		Salaries payable increase	1,300


Cash flows from operating activities

Adjustments to reconcile net income to net cash provided by operating activities

a.	Equipment with a book value of $79,000 and an original cost of $165,000 was sold at a loss of $31,000.
b.	Paid $115,000 cash for a new truck.
c.	Sold land costing $320,000 for $400,000 cash, yielding a gain of $80,000.
d.	Long-term investments in stock were sold for $95,600 cash, yielding a gain of $15,500.

Use the above information to determine this company's cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.)


Cash flows from investing activities

a.	Net income was $473,000.
b.	Issued common stock for $79,000 cash.
c.	Paid cash dividend of $15,000.
d.	Paid $120,000 cash to settle a note payable at its $120,000 maturity value.
e.	Paid $124,000 cash to acquire its treasury stock.
f.	Purchased equipment for $88,000 cash.

Use the above information to determine this company's cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.)