Question
Gaston Co. reports the following cash activities for the year: Receive cash from customers $100,000 Pay cash to purchase building $90,000 Receive cash from issuance
Gaston Co. reports the following cash activities for the year:
| Receive cash from customers | $100,000 |
| Pay cash to purchase building | $90,000 |
| Receive cash from issuance of stock | $50,000 |
| Pay cash for employee salaries | $40,000 |
| Pay cash for dividend to stockholders | $20,000 |
| Receive cash from sale of land | $70,000 |
| Pay cash for repayment of borrowing | $80,000 |
| Receive cash from long-term borrowing | $60,000 |
| Pay cash for purchase of supplies | $30,000 |
Calculate the amount of financing cash flows?
| a. | $10,000 | |
| b. | $20,000 | |
| c. | $160,000 | |
| d. | $90,000 | |
| e. | $50,000 |
Which of the following expenditures associated with Equipment would not be capitalized?
| a. | Original purchase cost | |
| b. | Cost necessary to transport the equipment during original purchase | |
| c. | Cost necessary to provide utilities to operate the equipment | |
| d. | Cost of a major upgrade one year after the equipment is purchased | |
| e. | C and D would not be capitalized |
Gaston Co. reports the following cash activities for the year:
| Receive cash from customers | $100,000 |
| Pay cash to purchase building | $90,000 |
| Receive cash from issuance of stock | $50,000 |
| Pay cash for employee salaries | $40,000 |
| Pay cash for dividend to stockholders | $20,000 |
| Receive cash from sale of land | $70,000 |
| Pay cash for repayment of borrowing | $80,000 |
| Receive cash from long-term borrowing | $60,000 |
| Pay cash for purchase of supplies | $30,000 |
Calculate the amount of investing cash flows?
| a. | $10,000 | |
| b. | $20,000 | |
| c. | $160,000 | |
| d. | $90,000 | |
| e. | $50,000 |
When issuing stock, a corporation must obtain approval from the:
| a. | Financial Accounting Standards Board | |
| b. | Securities and Exchange Commission | |
| c. | Internal Revenue Service | |
| d. | International Accounting Standards Board | |
| e. | Government Accountability Office |
Information related to the sale of a building for cash is below:
| Original cost | $200,000 |
| Accumulated Depreciation at the time of the sale | $150,000 |
| Sale price | $70,000 |
How would the sale of the building be reported in the Statement of Cash Flows using the indirect method?
| a. | Add $70,000 for investing cash inflow | |
| b. | Subtract $200,000 for investing cash outflow | |
| c. | Subtract $20,000 from net income for operating cash flows | |
| d. | Add $70,000 for financing cash inflow | |
| e. | Both A and C |
If you could please show your work/reasoning, that'd be great!
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