dont give answer in image format Exercise 12-9 (Algo) Cash flows from investing activities LO P3a. Equipment with a book value of $83,500 and an original cost of $164,000 was sold at a loss of $31,000.b. Paid $115,000 cash for a new truck.c. Sold land costing $320,000 for $405,000 cash, yielding a gain of $85,000.d. Stock Investments were sold for $97,700 cash, yielding a gain of $15,500.Use the above information to determine cash flows from investing activities. (Amounts to be deducted should be indicated with aminus sign.)Statement of Cash Flows (partial)Cash flows from investing activitiesCash received from the sale of equipmentCash paid for new truckCash received from the sale of landCash received from the sale of stock investmentsSS52,500(115,000)405,00097,700440,200

Cash flow from investing activity is a section of cash flow statement. It shows cash inflow and…

Answered: Use the above information to determine…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 7BE

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MASTERY PROBLEM Financial statements for Peachfield Corporation as well as additional information relevant to cash flows during the period follow. Additional information: 1. Office equipment was sold during the year for 75,000. 2. Depreciation expense for the year was 62,400 as follows: 3. No other equipment was sold during the year. The following purchases were made for cash. 4. Declared and paid cash dividends of 20,000. 5. Issued 11,200 shares of 10 par common stock for 118,000. 6. Issued a note payable for 10,700. 7. Additional store equipment was acquired by issuing a long-term note payable for 20,000. REQUIRED 1. Prepare a statement of cash flows explaining the change in cash and cash equivalents. 2. Reconcile cash and cash equivalents at the bottom of the statement of cash flows.
FREE CASH FLOW Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2018 2017 Assets Cash and equivalents 15,000 14,000 Accounts receivable 35,000 30,000 Inventories 33,320 27,000 Total current assets 83,320 71,000 Net plant and equipment 48,000 46,000 Total assets 131,320 117,000 Liabilities and Equity Accounts payable 10,100 9,000 Accruals 8,000 6,000 Notes payable 7,000 5,050 Total current liabilities 25,100 20,050 Long term bonds 20,000 20,000 Total liabilities 45,100 40,050 Common stock(4,000 shares) 40,000 40,000 Retained earnings 46,220 36,950 Common equity 86,220 76,950 Total liabilities and equity 131,320 117,000 Income Statement for Year Ending December 31, 2018 Sales 210,000 Operating cost excluding depreciation and amortization 160,00 EBITDA 50,000 Depreciation and amortization 6000 EBIT 44,000 interest 5,350 EBT 5,38,650 Taxes (40%) 15,460 Net income 23,190 Dividends paid 13,920 a. What was net operating working capital for 2017 and 2018? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes. b. What was .Arlingtons 2018 free cash flow? c. Construct Arlingtons 2018 statement of stockholders equity. d. What was Arlingtons 2018 EVA? Assume that its after tax cost of capital is 10%. e. What was Arlingtons MVA at year-end 2018? Assume that its stock price at December 31, 2018? Was 25.
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.
Statement of Cash Flows A list of Fischer Companys cash flow activities is presented here: a. Patent amortization expense, 3,500 b. Machinery was purchased for 39,500 c. At year-end, bonds payable with a face value of 20,000 were issued for 17,000 d. Net income, 47,200 k. Inventories increased by 15,400 e. Dividends paid, 16,000 f. Depreciation expense, 12,900 g. Preferred stock was issued for 13,600 h. Investments were acquired for 21,000 i. Accounts receivable increased by 4,300 j. Land was sold at cost, 11,000 k. Inventories increased by 15,400 l. Accounts payable increased by 2,700 m. Beginning cash balance, 19,400 Required: Prepare Fischers statement of cash flows.
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.
EXPANDED STATE MENT OF CASH FLOWS Financial statements for McDowell Company as well as additional information relevant to cash flows during the period are given on pages 922923. Additional information: 1. Store equipment was sold in 20-2 for 25,000. Additional information on the store equipment sold is provided below. 2. Depreciation expense for the year was 112,000. 3. The following purchases were made for cash: 4. Declared and paid cash dividends of 60,000. 5. Issued 10,000 shares of 10 par common stock for 14 per share. 6. Acquired additional store equipment by issuing a note payable for 16,000. REQUIRED Prepare a statement of cash flows explaining the change in cash and cash equivalents for the year ended December 31, 20-2.

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Use the above information to determine cash flows from investing activities. minus sign.)