Question
Part 1: The current period statement of cash flows includes the following: Cash balance at the beginning of the period $310,000 Net cash flow from
Part 1: The current period statement of cash flows includes the following:
Cash balance at the beginning of the period $310,000
Net cash flow from operating activities 185,000
Net cash flow used for investing activities 43,000
Net cash flow used for financing activities 97,000
The cash balance at the end of the period is
a. $45,000
b. $635,000
c. $355,000
d. $125,000
Part 2:
A company had net income of $252,000. Depreciation expense is $26,000. During the year, accounts receivable and inventory increased by $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method?
a. $305,000
b. $284,000
c. $224,000
d. $217,000
Part 3:
Zenith Corporation sells some of its used store fixtures. The acquisition cost of the fixtures is $12,500 and the accumulated depreciation on these fixtures is $9,750 at the time of sale. The fixtures are sold for $5,300. The value of this transaction in the investing section of the statement of cash flows is
$2,750
$12,500
$5,300
$2,550
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