Financial management chapter 4

The Spartan Corporation has engaged in several transactions listed below: 1. Sold food and beverages for cash 2 Purchased investments 3. Exchanged its common stock for long-term bonds 4. Sold common stock 5. Issued a stock dividend 6. Pald salaries and wages 7. Sold investments at a loss 8. Pald a cash dividend 9. Purchased a sixty-day treasury bill 10. Sold land for a gain 11. Paid interest 12. Received dividends from an investment 13. Paid for food and beverage supplies 14. Paid long-term debt 15. Purchased equipment Required: Identify each transaction as (1) an operating activity, (2) an investing activity, (3) a financing activity, (4) a noncash transaction, or (5) none of the above. The Shaw Restaurant's balance sheets for 20x4 and 20x5 reveal the following amounts for its current accounts: 20X4 20X5 Current Assets: Cash Accounts Recevable Food Inventory Prepaid Insurance Total $ 540 12,400 6,211 3,422 $22,573 S 750 14,642 6,011 4,158 S25,561 Current Liabilities: Accounts Payable Accrued Expenses Taxes Payable Total $ 3,158 2.414 1,500 $ 7,072 $ 5,674 2,176 1,951 S 9,801 Assume Shaw Restaurant's depreciation expense and net income for 20x4 and 20x5 were $5,200 and $21,452, respectively. Required: Prepare the cash from operating activities section of the SCF Unclassified Balance Sheets Alpha Caf December 31, 20X1 and 20X2 20X1 20X2 Cash Marketable Securities Accounts Receivable Inventory Prepaid Expenses Equipment Accumulated Depreciation Total Assets $15,000 25,000 24,000 20,000 10,000 420,000 (180.000) $30,000 30,000 26,000 18,000 25,000 555,000 (200.000) $334,000 $484,000 Current Liabilities: Accounts Payable Accrued Expenses Dividends Payable Mortgage Payable (current) Mortgage Payable (long term) Common Stock Treasury Stock Retained Earnings Total Liabilities and Owners' Equity $15,000 10.000 23,000 20,000 150,000 $13,000 15,000 26,000 25,000 195,000 120,000 (20,000) 16.000 140,000 (30,000) 100.000 $33.4000 $484.000 Other information: 1. Assume the net income for 20x2 was $140,000 2 Assume marketable securities costing $5,000 were sold for $8,000 during 20x2. 3. Assume equipment costing $30,000, with a net book value of $10,000, was sold at a loss of $5,000 during 20X2 Required: Prepare the cash flow from investing activities section of the SCF for 20X2