Question
The following items may be reflected in a companys statement of cash flows. For each item, indicate which, if any, of the 3 sections of
The following items may be reflected in a companys statement of cash flows. For each item, indicate which, if any, of the 3 sections of the statement of cash flows the item would be reflected in. Assume the statement is prepared using the indirect method.
Selling a fixed asset for more than book value.
Using cash to purchase a fixed asset.
Using cash to buy back our own company stock.
Using cash to purchase 100 shares of stock in another company.
Borrowing money.
Using cash to pay a dividend to stockholders.
Issuing stock in exchange for $500,000.
(3 points) For the year ended 12-31-15, Sather reported net income of $945,000. During 2015, Sather sold a fixed asset for $15,000. The book value of this asset at the time of sale was $20,000. Other information about Sather for 2015 follows:
Increase in accounts receivable $18,000
Increase in prepaid expenses $14,000
Decrease in accrued wages payable $22,000
Decrease in unearned revenues $11,000
Depreciation expense $45,000
What was Sathers net cash provided by (used in) operating activities for 2015? Be sure to label your answer as cash provided by operating activities OR cash used in operating activities.
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