progress%3Dfalse-&inprogress=falseABPECalculatorA building with a book value of $41,219 is sold for $57,394 cash. Using the indirect method, choose how this transactionshould be shown on the statement of cash flows.Select the correct answer.an increase of $41,219 from investing activities and an addition to net income of $16,175an increase of $41,219 from investing activitiesan increase of $57,394 from investing activitiesan increase of $57,394 from investing activities and a deduction from net income of $16,1754:05 PM12/20/2019

Statement of cash flows: It is one of the financial statements that shows the cash and cash…

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Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 35E: Classification of Cash Flows The following are several items that might be disclosed on a companys...

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Classification of Cash Flows The following are several items that might be disclosed on a companys statement of cash flows presented using the indirect method. a. Net income b. Depreciation expense c. Issuance of common stock d. Loss on disposal of equipment e. Purchase of a building f. Decrease in accounts payable g. Converted bonds into common stock h. Sale of long-term investment i. Payment of interest j. Increase in inventory Required: 1. Indicate whether each item should be classified as a cash flow from operating activities, cash flow from investing activities, cash flow from financing activities, or noncash investing and financing activity. 2. CONCEPTUAL CONNECTION Why is the proper classification of cash flows important?
Determining Net Cash Flow from Investing Activities Orlando Inc. reported the following information: 12/31/2019 12/31/2018 Furniture $46,000 $32,000 Accumulated depreciation 15,900 12,500 Investment (long-term) 38,000 50,000 In addition, Orlando sold furniture costing $8,000 with accumulated depreciation of $5,000 for $3,500. Orlando also reported a $3,000 gain on the sale of long-term investments. Required: Compute net cash flow from investing activities. Use a minus sign to indicate negative cash flows (outflows).
Question Content Area If a gain of $5,236 is realized in selling (for cash) office equipment having a book value of $63,923, the total amount reported in the cash flows from investing activities section of the statement of cash flows is a.$69,159 b.$58,687 c.$63,923 d.$5,236
Indicate the effect each separate transaction has on investing cash flows. (Amounts to be deducted should be indicated with a minus sign.) Sold a truck costing $40,000, with $22,000 of accumulated depreciation, for $8,000 cash. The sale results in a $10,000 loss. Sold a machine costing $10,000, with $8,000 of accumulated depreciation, for $5,000 cash. The sale results in a $3,000 gain. Purchased stock investments for $16,000 cash. The purchaser believes the stock is worth at least $30,000.
Pls I need help with this 2 cashflow questions. Find attached Additional information:Equipment which had cost GH¢255, 000 and with a net book value of GH¢ 135,000 and was sold for GH¢96, 000 during the year.The cash proceeds of the sale of asset investments properties amounted to GH¢75,000.Dividends paid during the year amounted to GH¢240,000. Required:Prepare the company’s statement of cash flows for the year ended 31st December 2018, using the indirect method, adopting the format in IAS 7 Statement of cash flows.
Question 1 Consider the following financial information and answer the questionsthat follow:Sales : $250,000Costs : $134,000Depreciation : $10,200Operating expenses : $6,000Interest expenses : $20,700Taxes : $18,420Dividends : $10,600Addition to Retained Earnings : $50,080Long term debt repaid : $9,300New Equity issued : $8,470New fixed assets acquired : $15,000You are required to:i) Calculate the operating cash flow ii) Calculate the cash flow to creditors iii) Calculate the cash flow to shareholders iv) Calculate the cash flow from assets v) Calculate net capital spending vi) Calculate change in NWC Question 2 The following financial information is available for Hero Sports Ltd.:Sales : $45,000Costs : $25,000Addition to retained earnings : $5,500Dividends paid : $900Interest expense : $1,450Tax rate : 40%Compute the depreciation expense. Question 3 Use the following information to answer the question that follow:Net Income : $205,000Profit margin : 7.80%A/R : $151,642Credit sales :…
A building with a book value of $35,892 is sold for $53,310 cash. Using the indirect method, choose how this transaction should be shown on the statement of cash flows. Select the correct answer. -an increase of $53,310 from investing activities and a deduction from net income of $17,418 -an increase of $35,892 from investing activities -an increase of $53,310 from investing activities -an increase of $35,892 from investing activities and an addition to net income of $17,418
Prepare the company's statement of cash flows indirect method for the year ended December 31, 2024. Assume investments are purchased with cash. (Use a minus sign or parentheses for amounts that result in a decrease in cash. It a box is not used in the statement leave the box empty; do not select a label or enter a zero.) More info Superior calculated the following amounts for 2024: • Acquisition value of plant assets, $89,000. • Payment of dividends, $102,000. • Payment of long-term notes payable, $3,000. • Cash receipt from issuance of common stock. $15.000. Superior Exercise disposed of plant assets at book value. The cost and accumulated depreciation of the disposed asset was $43 500. No cash was received upon disposal
Cash flow from assets (CFFA) is also known as “Free cash flow” (FCF). CFFA (or FCF) is calculated by adding Net Income to Depreciation and Interest Expense, then subtracting capital expenditures for the period, and then subtracting any increases in net working capital required to keep the operation running and growing in accord with plans. NOW SUPPOSE that your business had 25,000 in Net Income; 1,400 in Depreciation Expense; 1,500 in Capital Expenditures; 7,500 in Interest Expense; and your Net Working Capital account was required to increase by 500. FIND: CFFA The answer I came up with was 32,400. Is that correct?
Additional information: 1. Net income was $22,900. Dividends declared and paid were $14,500. 2. No noncash investing and financing activities occurred during 2022. 3. The land was sold for cash of $4,700. (a)Prepare a statement of cash flows for 2022 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000).) B,Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Free cash flow
Cash flow from assets (CFFA) is also known as “Free cash flow” (FCF). CFFA (or FCF) is calculated by adding Net Income to Depreciation and Interest Expense, then subtracting capital expenditures for the period, and then subtracting any increases in net working capital required to keep the operation running and growing in accord with plans. NOW SUPPOSE that your business had 29,000 in Net Income; 1,700 in Depreciation Expense; 1,900 in Capital Expenditures; 5,500 in Interest Expense; and your Net Working Capital account was stable (NO CHANGE) across the period. FIND: CFFA I got 34,300. Is that correct?
need answer in detail with full working Additional data: 1. Depreciation expense was$18,600. 2. Dividends declared and paid were$17,340. 3. During the year, equipment wás sold for$8,700cash. This equipment originally cost$18,200and had accumulated depreciation of$9,500at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. (a) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g−15,000or in parenthesis e.g. (15.000).)

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