Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following financial statements and information are available for Blythe Industries, Incorporated. Additional Information 1. Sold land that cost $45,000 for $50,000. 2. Sold equipment
The following financial statements and information are available for Blythe Industries, Incorporated. Additional Information 1. Sold land that cost $45,000 for $50,000. 2. Sold equipment that cost $34,000 and had accumulated depreciation of $23,000 for $20,000. 3. Purchased new equipment for $216,000. 4. Sold marketable securities that were classified as available-for-sale and that cost $51,000 for $80,000. 5. Purchased new marketable securities, classified as available-for-sale, for $115,000. 6. Paid $23,000 on the principal of the long-term note. 7. Paid off a $114,000 bond issue and issued new bonds for $229,000. 8. Sold 100 shares of treasury stock at its cost. 9. Issued some new common stock. 10. Issued some new $50 par preferred stock. 11. Paid dividends. (Note: The only transactions to affect retained earnings were net income and dividends.) Required Organize the class into three sections and divide each section into groups of three to five students. Assign each section of groups an activity section of the statement of cash flows (operating activities, investing activities, or financing activities). Group Task Prepare your assigned portion of the statement of cash flows using the direct method. Have a representative of your section put your activity section of the statement of cash flows on the board. As each section adds its information on the board, the full statement of cash flows will be presented. Class Discussion Have the class finish the statement of cash flows by computing the net change in cash. Also have the class answer the following questions: a. What is the cost per share of the treasury stock sold? b. What was the price per share of the newly issued preferred stock? c. What was the book value of the equipment sold? Complete this question by entering your answers in the tabs below. Prepare a statement of cash flows using the direct method. (Cash outflows should be indicated with a minus sign.) The following financial statements and information are available for Blythe Industries, Incorporated. Additional Information 1. Sold land that cost $45,000 for $50,000. 2. Sold equipment that cost $34,000 and had accumulated depreciation of $23,000 for $20,000. 3. Purchased new equipment for $216,000. 4. Sold marketable securities that were classified as available-for-sale and that cost $51,000 for $80,000. 5. Purchased new marketable securities, classified as available-for-sale, for $115,000. 6. Paid $23,000 on the principal of the long-term note. 7. Paid off a $114,000 bond issue and issued new bonds for $229,000. 8. Sold 100 shares of treasury stock at its cost. 9. Issued some new common stock. 10. Issued some new $50 par preferred stock. 11. Paid dividends. (Note: The only transactions to affect retained earnings were net income and dividends.) Required Organize the class into three sections and divide each section into groups of three to five students. Assign each section of groups an activity section of the statement of cash flows (operating activities, investing activities, or financing activities). Group Task Prepare your assigned portion of the statement of cash flows using the direct method. Have a representative of your section put your activity section of the statement of cash flows on the board. As each section adds its information on the board, the full statement of cash flows will be presented. Class Discussion Have the class finish the statement of cash flows by computing the net change in cash. Also have the class answer the following questions: a. What is the cost per share of the treasury stock sold? b. What was the price per share of the newly issued preferred stock? c. What was the book value of the equipment sold? Complete this question by entering your answers in the tabs below. Prepare a statement of cash flows using the direct method. (Cash outflows should be indicated with a minus sign.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started