Need help with the following:

Winslow Manor Construction provided the following information during the year:

Proceeds from sale of building $65,000

Cash paid to purchase inventories 22,000

Proceeds from issuing long-term debt 17,000

Dividends paid to stockholders 12,000

Purchase of land for cash 56,000

Cash collected from customers 180,000

How much is the net cash provided(/used) by investing activities during the year?

$26,000

$14,000

$9,000

$14,000

How are changes in long-term liabilities that result in cash flows reported on the statement of cash flows?

As investing activities

As operating activities

As financing activities

As non-cash activities

How is cash received from using a line of credit reported on the statement of cash flows?

As an investing activity

As an operating activity

As a financing activity

As a non-cash activity

Carriage House Cleaners purchased equipment and paid dividends during the year. Where do these amounts appear on the statement of cash flows, respectively?

Operating activities section, financing activities section

Financing activities section, operating activities section

Investing activities section, operating activities section

Investing activities section, financing activities section

Selected information from the 2014 and 2013 accounting records of Hinley Roofing is provided below:

December 31,

2014 2013

Net cash provided (used) by operations $38,000 $39,000

Net cash provided (used) by investing activities (22,000) 14,000

Net cash provided (used) by financing activities (15,000) (26,000)

Cash balance at end of year ? 15,000

At the end of 2014, how much is Riddle?s cash balance?

$16,000

$40,000

$28,000

$43,000

Which of the following activities is not reported as a financing activity on the statement of cash flows?

Borrowing from a bank

Paying interest on a long-term note payable

Repaying the principal on a loan

Issuing common stock for cash

Rodgers Chemicals sold a piece of equipment for cash and recognized a gain of $5,000. The original cost was $34,000 and the accumulated depreciation on the equipment just prior to the sale totaled $19,000. What amount will Rodgers Chemicals report in the investing activities section of its statement of cash flows?

$20,000

$54,000

$10,000

$15,000

Which of the following is reported as an operating activity?

Cash payments for income taxes

Cash payments for loan principal

Cash payments for dividends

Proceeds from the sale of a plant asset

Which of the following is reported as an investing activity?

Depreciation on plant assets

Cash payments to acquire new equipment

Cash received for the sale of stock to investors

Interest received on a money market bank account

Which of the following is considered to be a cash flow provided/(used) by financing activities?

Dividends received from stock investments

Cash received from customers for amounts due on account

Proceeds from issuing common stock

Interest paid on short-term notes payable

Exercise 10-16

At the start of 2015, the New Orleans Fine Food Company budgeted before-tax income as follows:

Sales $550,000

Less:

Material cost $100,000

Labor cost $220,000

Owner?s salary $65,000

Rent $55,000

Depreciation $45,000

Utilities $22,000 $507,000

Income before taxes $443,000

Actual before tax income for 2015 was:

Sales $660,000

Less:

Material cost $130,000

Labor cost $285,000

Owner?s salary $65,750

Rent $55,000

Depreciation $45,200

Utilities $21,000 $601,950

Income before taxes $58,050

Florence Roden, the owner of the company, is pleased that sales were much higher than planned, but she also is concerned that expenses were $94,950 higher than the amounts she budgeted. Should she be concerned with the level of actual expenses? Prepare a performance report that will help her focus on areas needing attention.

Problem 12-7

ELN Waste Management has a subsidiary that disposes of hazardous waste and a subsidiary that collects and disposes of residential garbage. Information related to the two subsidiaries follows:

Hazardous Waste Residential Waste

Total assets $15,300,000 $87,000,000

Noninterest-bearing current liabilities 3,300,000 13,200,000

Net income 1,870,000 6,600,000

Interest expense 1,375,000 8,030,000

Required rate of return 10% 13%

Tax rate 40% 40%

Calculate ROI for both subsidiaries

Calculate EVA for both subsidiaries. Note that since no adjustments for accounting distortions are being made. EVA is equivalent to residual income

Which subsidiary has added the most to shareholder value in the last year

Based on the limited information, which subsidiary is the best candidate for expansion? Explain.

Winslow Manor Construction provided the following information during the year: Proceeds from sale of building $65,000 Cash paid to purchase inventories Proceeds from issuing long-term debt Dividends paid to stockholders 12,000 Purchase of land for cash 56,000 Cash collected from customers 180,000 22,000 17,000 How much is the net cash provided(/used) by investing activities during the year? $26,000 $14,000 $9,000 $14,000 How are changes in long-term liabilities that result in cash flows reported on the statement of cash flows? As investing activities As operating activities As financing activities As non-cash activities How is cash received from using a line of credit reported on the statement of cash flows? As an investing activity As an operating activity As a financing activity As a non-cash activity Carriage House Cleaners purchased equipment and paid dividends during the year. Where do these amounts appear on the statement of cash flows, respectively? Operating activities section, financing activities section Financing activities section, operating activities section Investing activities section, operating activities section Investing activities section, financing activities section Selected information from the 2014 and 2013 accounting records of Hinley Roofing is provided below: December 31, 2014 2013 Net cash provided (used) by operations $38,000 $39,000 Net cash provided (used) by investing activities (22,000) 14,000 Net cash provided (used) by financing activities (15,000) (26,000) Cash balance at end of year ? 15,000 At the end of 2014, how much is Riddle's cash balance? $16,000 $40,000 $28,000 $43,000 Which of the following activities is not reported as a financing activity on the statement of cash flows? Borrowing from a bank Paying interest on a long-term note payable Repaying the principal on a loan Issuing common stock for cash Rodgers Chemicals sold a piece of equipment for cash and recognized a gain of $5,000. The original cost was $34,000 and the accumulated depreciation on the equipment just prior to the sale totaled $19,000. What amount will Rodgers Chemicals report in the investing activities section of its statement of cash flows? $20,000 $54,000 $10,000 $15,000 Which of the following is reported as an operating activity? Cash payments for income taxes Cash payments for loan principal Cash payments for dividends Proceeds from the sale of a plant asset Which of the following is reported as an investing activity? Depreciation on plant assets Cash payments to acquire new equipment Cash received for the sale of stock to investors Interest received on a money market bank account QUESTION 40 Which of the following is considered to be a cash flow provided/(used) by financing activities? Dividends received from stock investments Cash received from customers for amounts due on account Proceeds from issuing common stock Interest paid on short-term notes payable Exercise 10-16 At the start of 2015, the New Orleans Fine Food Company budgeted before-tax income as follows: Sales Less: Material cost Labor cost Owner's salary Rent Depreciation Utilities Income before taxes $550,000 $100,000 $220,000 $65,000 $55,000 $45,000 $22,000 $507,000 $443,000 Actual before tax income for 2015 was: Sales $660,000 Less: Material cost $130,000 Labor cost $285,000 Owner's salary $65,750 Rent $55,000 Depreciation $45,200 Utilities $21,000 $601,950 Income before taxes $58,050 Florence Roden, the owner of the company, is pleased that sales were much higher than planned, but she also is concerned that expenses were $94,950 higher than the amounts she budgeted. Should she be concerned with the level of actual expenses? Prepare a performance report that will help her focus on areas needing attention. Problem 12-7 ELN Waste Management has a subsidiary that disposes of hazardous waste and a subsidiary that collects and disposes of residential garbage. Information related to the two subsidiaries follows: Total assets Noninterest-bearing current liabilities Net income Interest expense Required rate of return Tax rate a. b. c. d. Hazardous Waste $15,300,000 3,300,000 1,870,000 1,375,000 10% 40% Residential Waste $87,000,000 13,200,000 6,600,000 8,030,000 13% 40% Calculate ROI for both subsidiaries Calculate EVA for both subsidiaries. Note that since no adjustments for accounting distortions are being made. EVA is equivalent to residual income Which subsidiary has added the most to shareholder value in the last year Based on the limited information, which subsidiary is the best candidate for expansion? Explain