its 303 CashFlowExercisesStudent.docx - Google Chrome X X + X assignment.itslearning.com/mvc/Attachment/Get?Fileld=CUMhmDjSRUmaONdhvoF3R2sZju%2f9wa%2f7BdWj%2byM8bM%2ftbX9cTCJIQAxYIY1m65tW&UniqueFileld=98214309-d238-4945-... Paused Word 303 CashFlowExercisesStudent ~ Zainab Allami > > Other bookmarks Accessibility Mode [) Immersive Reader & Download Print ... Zainab Allami Problem 1 . Alpha enterprises uses indirect method for preparing its statement of cash flows. It has reported a net income of $100,000 for the year 2018. During the year 2018, the accounts were changed as follows: nt " Increase in accounts receivable: $22,000 Increase in accounts payable: $18,600 Ly Immersive Reader Increase in inventory: $14,800 Decrease in non-trade notes payable: $30,000 Increase in available for sale securities: $32,000 The depreciation expense was $34,000 for the year 2016. O Required: Compute net cash provided (used) by operating activities using indirect method. B+ TIP : Remember the sale for securities as well as the increase or decrease of notes payables to check to what area of the statement of cash flow belong to. ANSWER: Cash Flow from operating Activies: Net Income XXXX Accl Accl Accl Accl Subtotal: Net Cash provided by operating XXXXX Activities Page 1 of 3 100% Give Feedback to Microsoft Paste No Spacing Heading 1 Gc Replace BI Uvab X x A LA Dictate Sensitivity Editor Select Undo Clipboard Font Paragraph Styles Editing Voice Sensitivity Editor Chart i) USE ON MOBILE Open, review, and share your documents on the go from anywhere. Scan QR code x . . . 2 . . . . . 5 . . . . 6 . . . . I . Problem 2 . From a list of various activities performed by the company during the year 2018 that is given below, please explain the effect of each activity on the statement of cash flows of the company for the year 2018. Please answer in CAPITAL LETTER IF IT IS AN INFLOW(I )OR AN OUTFLOW (O) COLUMN 1 , AND COLUMN 2 , IF IT CORRESPONDS TO OPERATINGCASHFLOW(OC), INVESTMENT ACTIVITY CASHFLOW(IC), FINANCING ACTIVITY CASHFLOW ( FC) Example: Reduce marketable securities : I OC ( "I" or "O") AND ("OC", "IC" . "FC" ) Activity INFLOW " I" or OPERATINGCASHFLOW(OC), INVESTMENT Outflow "O" ACTIVITY CASHFLOW(IC), FINANCING ACTIVITY CASHFLOW ( FC) 1. Purchase of treasury stock 2. Purchase of available for sale investment 3. Sale of equipment at a loss 4. Increase in accounts payable 5. Retirement of bonds 6. Issuance of bonds 7. Decrease in accounts payable Increase in inventory 9 an from bank by sionino a note Page 2 of 4 694 words English (United States) Text Predictions: On ? Accessibility: Unavailable Focus 27 72OF Cloudy Q Search * G 200m W 2 x ENG 7:26 ... 3/23/2023 15W AutoSave Off 303 CashFlowExercisesStudent - Compatibility Mode v Search zainab allami X File Home Insert Draw Design Layout References Mailings Review View Help Comments Editing Share ~ G Times New Roman ~ 11 ~ A" A Aa Ap Find Normal No Spacing Paste Heading 1 Gc Replace BI Uvab X x A LA Dictate Sensitivity Editor Select Undo Clipboard Font Paragraph Styles Editing Voice Sensitivity Editor Chart i) USE ON MOBILE Open, review, and share your documents on the go from anywhere. Scan QR code x 2. Purchase of available for sale investment 3. Sale of equipment at a loss 4. Increase in accounts payable 5. Retirement of bonds 6. Issuance of bonds 7. Decrease in accounts payable 8. Increase in inventory 9. Loan from bank by signing a note 10. Increase in accounts receivable 11. Purchase of equipment by issuing a note 12. Purchase of land and building. 13. Decrease in accounts receivable 14. Payment of dividends. 15. Issuance of stock for cash. 16. Sale of land at a gain 17. Depreciation expense. 18. Sale of land at book value Page 2 of 4 694 words DX English (United States) Text Predictions: On ? Accessibility: Unavailable " Focus 27 72OF Q Search * G W ENG 7:26 ... Cloudy 200m X 3/23/2023 15W AutoSave Off 303 CashFlowExercisesStudent - Compatibility Mode v Search zainab allami X File Home Insert Draw Design Layout References Mailings Review View Help Comments Editing Share ~ G Times New Roman ~ 11 ~ A" A Aa Ap Find Normal No Spacing Gc Replace Paste BI Uvab X x A LA Heading 1 Dictate Sensitivity Editor Select Undo Clipboard Font Paragraph Styles Editing Voice Sensitivity Editor Chart i) USE ON MOBILE Open, review, and share your documents on the go from anywhere. Scan QR code x . 3 . Problem 3 Set of Multiple Choice Questions Use the following information to answer questions 1-3. Desert Products engaged in the following cash transactions during May: (Note: Answers in parentheses indicate net cash outflows.) Purchase of inventory $ 5,000 ( operating) Cash proceeds from loan $ 7,000 ( financing) Cash paid for interest $ 400 ( financing) Cash collected from sales $26,500 ( operating) New stock issued $25,000 ( financing) Salaries paid to employees $ 4,600 ( operating) Purchase of new delivery van $20,000 (investing ) 1. How much is net cash from financing activities? a. $ 7,000 b. $25,000 c. $32,000 d. $31,600 2. How much is net cash from investing activities? a. $(20,000) b. $(25,000) c. $ 25,000 d. $ 32,000 3. How much is net cash from operating activities? a. $26,500 b. $ (3,500) c. $16,900 d. $16,500 4. Cash from the sale of treasury stock a. would not be included in the statement of cash flows. b. would be classified as a contra-equity cash flow. c. would be classified as an investing cash flow. d. would be classified as a financing cash flow. 5. The cash proceeds from the sale of a building will be a. the cost of the building. b. the book value of the building. c. the book value plus any gain or minus Page 3 of 4 694 words DX English (United States) Text Predictions: On ? Accessibility: Unavailable Focus 27 72 F Q Search G 200m x ENG 7:26 ... 3/23/2023 15 CloudyW AutoSave Off 303 CashFlowExercisesStudent - Compatibility Mode v Search zainab allami X File Home Insert Draw Design Layout References Mailings Review View Help Comments Editing Share ~ G Calibri (Body) * 11 ~ A" A Aa Ap Find Normal No Spacing Heading 1 Paste Gc Replace BI Uvab X x A LA Dictate Sensitivity Editor Select Undo Clipboard Font Paragraph Styles Editing Voice Sensitivity Editor Chart i) USE ON MOBILE Open, review, and share your documents on the go from anywhere. Scan QR code x A Purchase of new delivery van $20,000 (investing ) 1. How much is net cash from financing activities? a. $ 7,000 b. $25,000 c. $32,000 d. $31,600 2. How much is net cash from investing activities? a. $(20,000) b. $(25,000) c. $ 25,000 d. $ 32,000 3. How much is net cash from operating activities? a. $26,500 b. $ (3,500) c. $16,900 d. $16,500 4. Cash from the sale of treasury stock a. would not be included in the statement of cash flows. b. would be classified as a contra-equity cash flow. c. would be classified as an investing cash flow. d. would be classified as a financing cash flow. 5. The cash proceeds from the sale of a building will be a. the cost of the building. b. the book value of the building. c. the book value plus any gain or minus any loss. d. shown on the financing portion of the appropriate financial statement. 6. If a firm has net investing cash inflows of $5,000; net financing cash inflows of $24,000; and a net increase in cash for the year of $12,000, how much is net cash from operating activities? a. Net cash inflow of $17,000 b. Net cash inflow of $29,000 c. Net cash outflow of $17,000 d. Net cash outflow of $19,000 7. Depreciation for the year was $50,000 and net income was $139,500. If the company's transactions were all cash except those related to long-term assets, how much was net cash from operatingactivities? a. $139,500 b. $189,500 c. $ 89,500 d. It cannot be determined from the given information. Page 3 of 4 693 words DX English (United States) Text Predictions: On ? Accessibility: Unavailable Focus 28 20% 72 F Q Search G 200m ENG Cloudy x 7:26 ... 3/23/2023 15