Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me with this Cash Flow from Investing Activities Instructions Amount Descriptions and Labels Statement of Cash Flows (Partial) Conceptual Connection Instructions X Statement

please help me with this

image text in transcribedimage text in transcribed
Cash Flow from Investing Activities Instructions Amount Descriptions and Labels Statement of Cash Flows (Partial) Conceptual Connection Instructions X Statement of Cash Flows (Partial) X During 20X1, Craig Company had the following transactions: 1. Prepare the net cash from investing activities section of the statement of cash flow A. Purchased $200,500 of 10-year bonds issued by Makenzie Inc. (Note: Use a minus sign to indicate any decreases in cash or cash outflows. Refer to B. Acquired land valued at $69,200 in exchange for machinery. the Amount Descriptions list provided for the exact wording of the answer choices for C. Sold equipment with original cost of $539,700 for $330,100; accumulated depreciation taken on the equipment to the point of sale was text entries.) $179,700. D. Purchased new machinery for $120,300. Conceptual Connection E. Purchased common stock in Lemmons Company for $55,800. 2. Usually, the net cash from investing activities is negative. How Craig cover this negative cash flow What other information would you like to have to make this decision? Complete the items below that Required: outline a response to the questions posed above. 1. Prepare the net cash from investing activities section of the statement of cash flows. The negative cash flow from investing activities can be covered by using cash from 2. CONCEPTUAL CONNECTION Usually, the net cash from investing activities is negative. How can Craig cover this negative cash flow? What other information would you like to have to make this decision? Amount Descriptions and Labels X Some of the activities listed below would provide cash for investment. Check all that apply. Amount Descriptions Labels Land in exchange for machinery Cash flows from financing activities issuing bonds Net cash from investing activities Cash flows from investing activities declaring a dividend Purchase of bonds Noncash investing activity taking out mortgages Purchase of common stock Purchase of new machinery repurchasing common stock Sale of equipmentClick to watch the Tell Me More Learning Objective 1 video and then answer the questions below. 1. While performing the financial audit of Argon Metals Inc. for the year ended December 31, 20X1, its external auditors noted that the company had issued common stock of $50,000 to acquire land worth $50,000. How should Argon Metals report the transaction on the statement of cash flows? a. The company should report the issue of stock and acquisition of land as investing activities in the statement of cash flows. b. The company should report the issue of stock and acquisition of land as financing activities in the statement of cash flows. c. The company should report the issue of stock and acquisition of land in a supplementary schedule attached to the statement of cash flows. d. The company should report the issue of stock as an investing activity and acquisition of land as a note in a supplementary schedule attached to the statement of cash flows. 2. Which of the following is an example of a cash flow from financing activity? a. Revenue from sales b. Issuing of common stock c. Purchase of long-term assets d. Dividends received from investments in other securities

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 1 Chapters 1 To 12

Authors: J. David Spiceland, James F. Sepe, Lawrence A. Tomassini, Mark W. Nelson

5th Edition

0073324655, 9780073324654

More Books

Students also viewed these Accounting questions

Question

2. The purpose of the acquisition of the information.

Answered: 1 week ago

Question

1. What is the meaning of the information we are collecting?

Answered: 1 week ago

Question

3. How much information do we need to collect?

Answered: 1 week ago