Concept explainers
Statement of
Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.
Cash flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company.
Cash flow from investing activities: This section of cash flows statement provides information concerning about the purchase and sale of capital assets by the company.
Cash flow from financing activities: This section of cash flows statement provides information about the
To classify: The given transactions based on operating, investing and financing activity of the statement of cash flows.
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Financial Accounting
- Tidwell Company experienced the following during 20X1: a. Sold preferred stock for 480,000. b. Declared dividends of 150,000 payable on March 1, 20X2. c. Borrowed 575,000 from a bank on a 2-year note. d. Purchased 80,000 of its own common stock to hold as treasury stock. e. Repaid 5-year bonds issued for 400,000 that mature and are due in December. Required: Prepare the net cash from financing activities section of the statement of cash flows.arrow_forwardThe following totals are taken from the statement of financial position of Stream Company: Current assets P350,000 Long-term assets 800,000 Current liabilities 240,000 Long-term liabilities 270,000 Additional information: (a) Cash of P38,000 has been placed in a fund for the retirement of long-term debt. The cash and long-term debt have been offset and are not reflected in the financial statements. (b) Long-term assets include P50,000 in treasury shares. (c) Cash of P14,000 has been set aside to pay taxes due. The cash and taxes payable have been offset and do not appear in the financial statements. (d) Advances on salespersons' commissions in the amount of P21,000 have been made. Also, sales commissions payable total P24,000. The net liability of P3,000 is included in Current Liabilities. Compute for the adjusted totals of Stream's current assets. Group of answer choices P350,000 P364,000 P423,000 P385,000arrow_forwardAccording to the information given in the table below, which of the following is cash flow from financing?  Net income    68,300 Decrease in Bank Loan    49,400 Increase in Bonds    22,500 Decrease in Equipment    38,250 Increase in Common stock    41,000  Select one: a. 30100 b. 55200 c. 33000 d. 14100arrow_forward
- During the year, Company A had the transactions listed below. Cash to retire bonds $4,200 Proceeds from bond issuance 8,040 Proceeds from sale of common stock 6,240 Cash to purchase common stock of Company A 2,400 Cash to purchase common stock of Company B 1,080 What amount would the company include in the financing section of the statement of cash flow? Select one: a. $1,024 million b. $950 million c. $3,498 million d. $510 million e. None of these are correctarrow_forwardn its fiscal 2010 balance sheet, Big Lots, Inc., reported cash and cash equivalents at the start of the year of $283,733 thousand. By the end of the year, the cash and cash equivalents had decreased to $177,539 thousand. The company's statement of cash flows reported cash from operating activities of $315,257 thousand, cash from financing activities of ($306,899) thousand. What amount did the company report for cash from investing activities? Select one: a. $8,358 thousand cash inflow b. $106,194 thousand cash outflow c. $114,552 thousand cash outflow d. $114,552 thousand cash inflow e. None of the above.arrow_forwardCorp. had the following balances at December 31, 2002:        Cash in checking account             P 420,000       Cash in money market account                      300,000       Treasury bill purchased 12/01/02, maturing 2/28/03      960,000       Treasury bond purchased 3/01/01, maturing 2/28/03          600,000 Bell’s policy is to treat as cash equivalents all highly liquid investments with maturity of three months or less when purchased. What amount should Bell report as cash and cash equivalents    in its December 31, 2002 balance sheet?      2,280,000    b. 1,680,000       c. 720,000       d. 1,380,000arrow_forward
- 3. Vaughn Corporation had the following activities in 2020. 1.  Payment of accounts payable $832,000  4.  Collection of note receivable $101,000 2.  Issuance of common stock $249,000  5.  Issuance of bonds payable $543,000 3.  Payment of dividends $338,000  6.  Purchase of treasury stock $50,000 Compute the amount Vaughn should report as net cash provided (used) by financing activities in its 2020 statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash select an option                                         by financing activities  $enter a dollar amountarrow_forward10. The following summary transactions occurred during 2021 for Bluebonnet Bakers:   Cash Received from:    Collections from customers $ 540,000  Interest on notes receivable  11,000  Collection of notes receivable  50,000  Sale of investments  39,000  Issuance of notes payable  200,000  Cash Paid for:    Purchase of inventory  260,000  Interest on notes payable  6,000  Purchase of equipment  98,000  Salaries to employees  103,000  Payment of notes payable  45,000  Dividends to shareholders  40,000    The balance of cash and cash equivalents at the beginning of 2021 was $31,000. Required:Prepare a statement of cash flows for 2021 for Bluebonnet Bakers. Use the direct method for reporting operating activities. (Amounts to be deducted should be indicated with a minus sign.)arrow_forwardJones Industries received $800,000 from issuing shares of its common stock and $650,000 from issuing bonds. During the year, Jones Industries also paid dividends of $110,000. How are the effects of these transactions reported on the statement of cash flows? Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank.arrow_forward
- State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows:a. Retired $400,000 of bonds, on which there was $3,000 of unamortized discount, for $411,000.b. Sold 20,000 shares of $5 par common stock for $22 per share.c. Sold equipment with a book value of $55,800 for $60,000.d. Purchased land for $650,000 cash.e. Purchased a building by paying $50,000 cash and issuing a $450,000 mortgage note payable.f. Sold a new issue of $500,000 of bonds at 98.g. Purchased 10,000 shares of $40 par common stock as treasury stock at $50 per share.h. Paid dividends of $1.50 per share. There were 1,000,000 shares issued and 120,000 shares of treasury stock.arrow_forwardSan Antonio Corporation’s current assets and current liabilities section of the statement of financial position as of December 31, 20x1 appear as follows:  Current assets Cash Accounts receivable  P5,340,000 P2,400,000 Less: Allowance for doubtful accounts           420,000  4,920,000 Inventories  10,260,000 Prepaid expenses            540,000  Total current assets     P18,120,000   Current liabilities Accounts payable                                                                         P3,660,000 Notes payable                                                                               4,020,000  Total current liabilities                                                           P7,680,000   The following errors in the corporation’s accounting have been discovered: January 20x2 cash disbursements entered as of December 20x1 included payment of accounts payable amounting to P2,340,000, on which a cash discount of 2%…arrow_forwardState the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $320,000 of bonds, on which there was $3,200 of unamortized discount, for $333,000.b. Sold 7,000 shares of $30 par common stock for $53 per share.c. Sold equipment with a book value of $59,700 for $86,000.d. Purchased land for $339,000 cash.e. Purchased a building by paying $64,000 cash and issuing a $90,000 mortgage note payable.f. Sold a new issue of $300,000 of bonds at 97.g. Purchased 3,600 shares of $20 par common stock as treasury stock at $37 per share.h. Paid dividends of $1.90 per share. There were 24,000 shares issued and 4,000 shares of treasury stock.arrow_forward
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