Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SIVUVIOLAT takeAssignment/takeAssignmentMain.do?invokeru&takeAssignmentSessionLocator=&inprogress=false New Tab eBook Calculator Effect of Transactions on Cash Flows State the effect (cash receipt or cash payment and amount) of each of

image text in transcribed
image text in transcribed
SIVUVIOLAT takeAssignment/takeAssignmentMain.do?invokeru&takeAssignmentSessionLocator=&inprogress=false New Tab eBook Calculator Effect of Transactions on Cash Flows State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, onc a. Retired $340,000 of bonds, on which there was $3,400 of unamortized discount, for $354,000. b. Sold 7,000 shares of $10 par common stock for $24 per share. c. Sold equipment with a book value of $53,000 for $76,300. d. Purchased land for $380,000 cash. e. Purchased a building by paying $69,000 cash and issuing a $100,000 mortgage note payable. f. Sold a new issue of $260,000 of bonds at 97. 9. Purchased 5,200 shares of $25 par common stock as treasury stock at $49 per share. h. Pald dividends of $1.70 per share. There were 33,000 shares issued and 5,000 shares of treasury stock. Effect Amount Cash payment Cash receipt Cash receipt Cash payment Cash payment Cash receipt Cash payment Cash payment Feedback Instructions The net income reported on the income statement for the current year was $410,400. Depreciation recorded on store equipment for the year amounted to $17,470. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Cash Accounts receivable (net) Inventories End of Year $39,800 31,820 39,230 3,430 39,770 20,280 Beginning of Year $37,960 27,630 43,060 4,830 35,040 24,950 Prepaid expenses Accounts payable (merchandise creditors) Wages payable Required: a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. b. Briefly explain why net cash flow from operating activities is different than net income

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_2

Step: 3

blur-text-image_3

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

Accounting And Finance For Non-Specialists

Authors: Eddie McLaney, Peter Atrill

11th Edition

1292244011, 9781292244013

More Books

Students also viewed these Accounting questions

Question

Were any of the authors students?

Answered: 1 week ago

Question

Explain the various methods of job evaluation

Answered: 1 week ago

Question

Differentiate Personnel Management and Human Resource Management

Answered: 1 week ago

Question

Describe the functions of Human resource management

Answered: 1 week ago

Question

5. How can I help others in the network achieve their goals?

Answered: 1 week ago