Rowdy's Restaurants cash flow ($ in millions) Cash received from: Customers $ 4,800 Interest on investments 400 Sale of land 300 Sale of Rowdy's common stock 1,000 Issuance of debt securities 4,000 Cash paid for: Interest on debt $ 500 Income tax 280 Debt principal reduction 3,500 Purchase of equipment 8,000 Purchase of inventory 3,000 Dividends on common stock 800 Operating expenses 900 Rowdy's would report net cash inflows (outflows) from operating activities in the amount of: Multiple Choice $(280) million. $520 million. $800 million. $1,020 million.

Rowdy's Restaurants cash flow ($ in millions) Cash received from: Customers $ 4,800 Interest on investments 400 Sale of land 300 Sale of Rowdy's common stock 1,000 Issuance of debt securities 4,000 Cash paid for: Interest on debt $ 500 Income tax 280 Debt principal reduction 3,500 Purchase of equipment 8,000 Purchase of inventory 3,000 Dividends on common stock 800 Operating expenses 900 Rowdy's would report net cash inflows (outflows) from operating activities in the amount of: Multiple Choice $(280) million. $520 million. $800 million. $1,020 million.

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 13MCQ

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Statement of Cash Flows The following items involve the cash flow activities of Rocky Horror Picture Co.: a. Net income, 41,000 b. Payment of dividends, 16,000 c. Ten year, 28,000 bonds payable were issued at face value d. Depreciation expense, 11,000 e. Building acquired at a con of 40,000 f. Accounts receivable decreased by 2,000 g. Accounts payable decreased by 4,000 h. Equipment acquired at a cost of 8,000 i. Inventories increased by 7,000 j. Beginning cash balance, 13,000 Required: Prepare Rocky Horror Pictures statement of cash flows using the indirect method.
Provide journal entries to record each of the following transactions. For each, identify whether the transaction represents a source of cash (S), a use of cash (U), or neither (N). A. Declared and paid to shareholders, a dividend of $24,000. B. Issued common stock at par value for $12,000 cash. C. Sold a tract of land that had cost $10,000, for $16,000. D. Purchased a company truck, with a note payable of $38,000. E. Collected $8,000 from customer accounts receivable.
EXPANDED STATEMENT OF CASH FLOWS Financial statements for McGinnis Company as well as additional information relevant to cash flows during the period are given below and on the next page. Additional information: 1. Office equipment was sold in 20-2 for 35,000. Additional information on the office equipment sold is provided below. 2. Depreciation expense for the year was 70,000. 3. The following purchases were made for cash: 4. Declared and paid cash dividends of 40,000. 5. Issued 10,000 shares of 10 par common stock for 22 per share. 6. Acquired additional office equipment by issuing a note payable for 8,000. REQUIRED Prepare a statement of cash flows explaining the change in cash and cash equivalents for the year ended December 31, 20-2.
EXPANDED STATEMENT OF CASH FLOWS Financial statements for McGinnis Company as well as additional information relevant to cash flows during the period are given below and on the next page. Additional information: 1. Office equipment was sold in 20-2 for 35,000. Additional information on the office equipment sold is provided below. 2. Depreciation expense for the year was 70,000. 3. The following purchases were made for cash: 4. Declared and paid cash dividends of 40,000. 5. Issued 10,000 shares of 10 par common stock for 22 per share. 6. Acquired additional office equipment by issuing a note payable for 8,000. REQUIRED Prepare a statement of cash flows explaining the change in cash and cash equivalents for the year ended December 31, 20-2. STATEMENT OF CASH FLOWS UNDER THE DIRECT METHOD Using the information provided in Problem 23-12B for McGinnis Company, prepare the following: 1. A schedule for the calculation of cash generated from operating activities for McGinnis Company for the year ended December 31, 20-2. 2. A statement of cash flows for McGinnis Company prepared under the direct method for the year ended December 31, 20-2.
Net Cash Flow from Operating Activities The following are accounting items taken from Tyrone Shoelaces Required: a. Net income, 22,900 b. Payment for purchase of land, 4,000 c. Payment for retirement of bonds, 6,000 d. Depreciation expense, 7,800 e. Receipt from issuance of common stock, 7,000 f. Patent amortization expense, 2,700 g. Increase in accounts receivable, 3,400 h. Payment of dividends, 5,000 i. Decrease in accounts payable, 2,600 Required: Prepare the operating activities section of Tyrones statement of cash flows using the indirect method.
Provide journal entries to record each of the following transactions. For each, identify whether the transaction represents a source of cash (S), a use of cash (U), or neither (N). A. Paid $22,000 cash on bonds payable. B. Collected $12,600 cash for a note receivable. C. Declared a dividend to shareholders for $16,000, to be paid in the future. D. Paid $26,500 to suppliers for purchases on account. E. Purchased treasury stock for $18,000 cash.
Darrell's Restaurants Cash Flow ($ in millions) Cash received from: Customers $ 1,800 Interest on investments 200 Sale of land 100 Sale of Rowdy's common stock 600 Issuance of debt securities 2,000 Cash paid for: Interest on debt $ 300 Income tax 80 Debt principal reduction 1,500 Purchase of equipment 4,000 Purchase of inventory 1,000 Dividends on common stock 200 Operating expenses 500 Calculate Darrell's net cash inflows (outflows) from operating activities. Show your work.
The following data for Ali’s Restaurants Cash Flow (in millions) to answer the questions 4,5,&6 below: Cash received from: Customers OR1,800 Interest on investments 200 Sale of land 100 Issuance of ordinary shares 600 Issuance of debt securities 2,000 Cash paid for: Interest on debt OR 300 Income tax 80 Debt principal reduction 1,500 Purchase of equipment 4,000 Purchase of inventory 1,000 Dividends on ordinary shares 200 Operating expenses 500 Assuming that interest received and paid are classified as operating cash flows, and dividends paid are classified as financing cash flows, Ali’s would report net cash inflows (outflows) from operating activities in the amount of:
Bad Brad's BBQ had cash flows for the year as follows ($ in millions): CASH RECEIVED FROM: Customers $3,400 Interest on investments 290 Sale of land 130 Sale of common stock 580 Issuance of debt securities 2,200 CASH PAID FOR: Interest on debt $280 Income tax 170 Debt principal reduction 1,650 Purchase of equipment 3,100 Purchase of inventory 900 Dividends on common stock 250 Operating expenses 450 Bad Brad's would report net cash inflows (outflows) from investing activities in the amount of: Multiple Choice $130. $(770). $(3,100). $(2,970).
Bad Brad's BBQ had cash flows for the year as follows ($ in millions): CASH RECEIVED FROM: Customers $ 3,000 Interest on investments 220 Sale of land 180 Sale of common stock 540 Issuance of debt securities 2,400 CASH PAID FOR: Interest on debt $ 290 Income tax 110 Debt principal reduction 1,650 Purchase of equipment 4,000 Purchase of inventory 750 Dividends on common stock 180 Operating expenses 750 Bad Brad's would report net cash inflows (outflows) from operating activities in the amount of: Multiple Choice $1,140. $1,320. $1,610. $(1,430) .
Bad Brad's BBQ had cash flows for the year as follows ($ in millions): Cash received from: Customers $3,100 Interest on investments 220 Sale of land 120 Sale of common stock 510 Issuance of debt securities 2,700 Cash paid for: Interest on debt $ 350 Income taxes 80 Debt principal reduction 1,650 Purchase of equipment 3,200 Purchase of inventory 700 Dividends on common stock 250 Operating expenses 600 Bad Brad's would report net cash inflows (outflows) from financing activities in the amount of:
Bad Brad's BBQ had cash flows for the year as follows ($ in millions): CASH RECEIVED FROM: Customers $ 2,700 Interest on investments 270 Sale of land 120 Sale of common stock 620 Issuance of debt securities 2,100 CASH PAID FOR: Interest on debt $ 290 Income tax 110 Debt principal reduction 1,500 Purchase of equipment 4,500 Purchase of inventory 1,100 Dividends on common stock 290 Operating expenses 500 Bad Brad's would report net cash inflows (outflows) from financing activities in the amount of: Multiple Choice $380. $1,050. Incorrect $930. $(1,050).

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Cash received from:
Customers	$	4,800
Interest on investments		400
Sale of land		300
Sale of Rowdy's common stock		1,000
Issuance of debt securities		4,000

Cash paid for:
Interest on debt	$	500
Income tax		280
Debt principal reduction		3,500
Purchase of equipment		8,000
Purchase of inventory		3,000
Dividends on common stock		800
Operating expenses		900