Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 11, Problem 11.51Q
The book value of equipment sold during 2018 was $22,000. Cramer’s net
- a. net cash used of $10,000.
- b. net cash used of $47,500.
- c. net cash used of $15,500.
- d. net cash used of $32,000.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Statement of Cash Flows
The following is a list of the items to be included in the preparation of Warrick Company's 2019 statement of cash flows:
a. net income, $59,200
b. payment for purchase of building, $98,000
c. increase in accounts receivable, $7,400
d. proceeds from issuance of common stock, $37,100
e. increase in accounts payable, $4,500
f. proceeds from sale of land, $7,000
g. depreciation expense, $12,600
h. payment of dividends, $36,000
i. gain on sale of land, $5,300
j. decrease in inventory, $3,700
k. payment for purchase of long-term investments, $9,600
I. amortization of discount on bonds payable, $1,900
m. proceeds from issuance of note, $18,000
n. increase in deferred taxes payable, $5,000
o. equipment acquired by capital lease, $19,500
p. decrease in salaries payable, $2,300
q. beginning cash balance, $20,300
Required
1. Prepare the statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.
WARRICK COMPANY
Statement of…
Statement of Cash Flows
The following is a list of the items to be included in the preparation of Warrick Company's 2019 statement of cash flows:
a. net income, $59,200
b. payment for purchase of building, $98,000
c. increase in accounts receivable, $7,400
d. proceeds from issuance of common stock, $37,100
e. increase in accounts payable, $4,500
f. proceeds from sale of land, $7,000
g. depreciation expense, $12,600
h. payment of dividends, $36,000
i. gain on sale of land, $5,300
j. decrease in inventory, $3,700
k. payment for purchase of long-term investments, $9,600
I. amortization of discount on bonds payable, $1,900
m. proceeds from issuance of note, $18,000
n. increase in deferred taxes payable, $5,000
o. equipment acquired by capital lease, $19,500
p. decrease in salaries payable, $2,300
q. beginning cash balance, $20,300
Required
1. Prepare the statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.
WARRICK COMPANY
Statement of…
Calculator
Cash paid to purchase long-term investments would be reported in the statement of cash flows in
a. the cash flows from operating activities section.
b. the cash flows from financing activities section.
C. the cash flows from investing activities section.
d. a separate schedule.
4:09 PM
12/20/2019
Chapter 11 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. 11 - Quick Check (Answers are given here) The statement...Ch. 11 - Prob. 2QCCh. 11 - Prob. 3QCCh. 11 - Which of the three types of activities reported on...Ch. 11 - Prob. 5QCCh. 11 - On the statement of cash flows, which of the...Ch. 11 - On the statement of cash flows, which of the...Ch. 11 - Prob. 8QCCh. 11 - Prob. 9QCCh. 11 - Which of the following transactions does not...
Ch. 11 - If the indirect method is used to calculate net...Ch. 11 - In 2018, Jubilee Company repurchased its own stock...Ch. 11 - Prob. 13QCCh. 11 - Prob. 14QCCh. 11 - Prob. 11.1ECCh. 11 - LO 1 (Learning Objective 1: Explain the purposes...Ch. 11 - Prob. 11.2SCh. 11 - Prob. 11.3SCh. 11 - Prob. 11.4SCh. 11 - (Learning Objective 2: Distinguish among...Ch. 11 - Prob. 11.6SCh. 11 - (Learning Objective 3: Prepare a statement of cash...Ch. 11 - Prob. 11.8SCh. 11 - (Learning Objective 3: Calculate financing cash...Ch. 11 - Prob. 11.10SCh. 11 - (Learning Objective 4: Calculate operating cash...Ch. 11 - Prob. 11.12SCh. 11 - Prob. 11.13SCh. 11 - Prob. 11.14SCh. 11 - Prob. 11.15AECh. 11 - (Learning Objectives 2, 3: Distinguish among...Ch. 11 - Prob. 11.17AECh. 11 - Prob. 11.18AECh. 11 - Prob. 11.19AECh. 11 - Prob. 11.20AECh. 11 - Prob. 11.21AECh. 11 - Prob. 11.22AECh. 11 - Prob. 11.23AECh. 11 - (Learning Objective 4: Prepare the statement of...Ch. 11 - Prob. 11.25AECh. 11 - Prob. 11.26BECh. 11 - (Learning Objectives 2, 3: Distinguish among...Ch. 11 - Prob. 11.28BECh. 11 - Prob. 11.29BECh. 11 - Prob. 11.30BECh. 11 - Prob. 11.31BECh. 11 - Prob. 11.32BECh. 11 - Prob. 11.33BECh. 11 - Prob. 11.34BECh. 11 - Prob. 11.35BECh. 11 - Prob. 11.36BECh. 11 - Prob. 11.37QCh. 11 - Prob. 11.38QCh. 11 - Prob. 11.39QCh. 11 - Prob. 11.40QCh. 11 - Prob. 11.41QCh. 11 - Prob. 11.42QCh. 11 - Prob. 11.43QCh. 11 - Prob. 11.44QCh. 11 - Prob. 11.45QCh. 11 - Prob. 11.46QCh. 11 - Prob. 11.47QCh. 11 - Prob. 11.48QCh. 11 - Prob. 11.49QCh. 11 - Prob. 11.50QCh. 11 - The book value of equipment sold during 2018 was...Ch. 11 - Prob. 11.52QCh. 11 - Prob. 11.53QCh. 11 - Prob. 11.54QCh. 11 - Prob. 11.55QCh. 11 - Prob. 11.56QCh. 11 - Prob. 11.57APCh. 11 - Prob. 11.58APCh. 11 - (Learning Objectives 2, 3: Prepare the statement...Ch. 11 - Prob. 11.60APCh. 11 - Prob. 11.61APCh. 11 - Prob. 11.62APCh. 11 - Prob. 11.63APCh. 11 - (Learning Objectives 2, 3, 4: Prepare the...Ch. 11 - Prob. 11.65APCh. 11 - Prob. 11.66BPCh. 11 - (Learning Objectives 2, 4: Prepare an income...Ch. 11 - (Learning Objectives 2, 3: Prepare the statement...Ch. 11 - Prob. 11.69BPCh. 11 - Prob. 11.70BPCh. 11 - Prob. 11.71BPCh. 11 - Prob. 11.72BPCh. 11 - Prob. 11.73BPCh. 11 - Prob. 11.74BPCh. 11 - Prob. 11.75CEPCh. 11 - Prob. 11.76CEPCh. 11 - Prob. 11.77CEPCh. 11 - Prob. 11.78SCCh. 11 - Prob. 11.79DCCh. 11 - Prob. 11.80DCCh. 11 - Ethical Issues Georgetown Motors is having a bad...Ch. 11 - Prob. 1FFCh. 11 - Prob. 1FA
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Mahoney Company has the following financial statements for 2017 and 2018. Assume that the purchase of equipment and the withdrawals were in the form of cash. Required Prepare a statement of cash flows for the year ended December 31, 2018. Check Figure Net cash flows from operating activities, 76,800arrow_forwardUse the following information from Birch Companys balance sheets to determine net cash flows from operating activities (indirect method), assuming net income for 2018 of $122,000.arrow_forwardThe Cash Flow from Operating Activities on Moore’s statement of cash flows for 2018 was $8,000,000. For 2018, depreciation on fixed assets was $3,800,000, amortization of intangibles was $100,000 and gains on the sale of fixed assets were $22,000. Based on the preceding information, Moore’s net income for 2018 was:arrow_forward
- Erie Company reported the following comparative balance sheets: Additional Information:1. Net income for 2019 was $20,500.2. Cash dividends of $7,900 were declared and paid during 2019.3. Long-term investments with a cost of $28,600 were sold for cash at a gain of $4,100. Additionallong-term investments were purchased for $14,400 cash.4. Equipment with a cost of $14,800 and accumulated depreciation of $13,500 was sold for$3,800 cash. New equipment was purchased for $27,350 cash.5. Depreciation expense was $18,900.6. A principal payment of $25,000 was made on long-term notes.7. Common stock was sold for $31,500 cash.Required:Prepare a statement of cash flows for Erie using the indirect method to compute net cash flowfrom operating activities.arrow_forwardStatement of Cash Flows The following is a list of the items for L Company's 2019 statement of cash flows: a. depreciation expense, $4,100 g. proceeds from issuance of note, $6,100 b. proceeds from sale of land, $5,500 h. gain on sale of land, $1,900 c. payment of dividends, $5,000 i. payment for purchase of building, $14,000 d. net income, $8,000 j. increase in accounts receivable, $2,800 e. conversion of bonds to common stock, $7,000 k. ending cash balance, $14,000 f. increase in accounts payable, $3,000 Required: Prepare the statement of cash flows. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments. L COMPANY Statement of Cash Flows For Year Ended December 31, 2019 Operating Activities: $fill in the blank 2 Adjustment for noncash income items: fill in the blank 4 fill in the blank 6 Adjustments for cash flow effectsfrom working capital items: fill in the blank 8…arrow_forwardStatement of Cash Flows The following is a list of the items to be included in the preparation of Warrick Company's 2019 statement of cash flows: Net income, $35,400 Payment for purchase of building, $87,000 Increase in accounts receivable, $7,200 Proceeds from issuance of common stock, $36,400 Increase in accounts payable, $4,400 Proceeds from sale of land, $8,000 Depreciation expense, $19,000 Payment of dividends, $32,000 Gain on sale of land, $3,500 Decrease in inventory, $3,300 Payment for purchase of long-term investments, $8,300 Amortization of discount on bonds payable, $1,500 Proceeds from issuance of note, $16,000 Increase in deferred taxes payable, $5,800 Equipment acquired by capital lease, $19,500 Decrease in salaries payable, $2,600 Beginning cash balance, $22,000 Required 1. Prepare the statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments. WARRICK COMPANY Statement of Cash Flows For Year Ended December…arrow_forward
- Based on the following information, compute cash flows from investing activities under GAAP.Cash collections from customers $800Purchase of used equipment 200Depreciation expense 200Sale of investments 450Dividends received 100Interest received 200arrow_forwardDetermine the amount of net cash flow for o'hare for 2017 if the sales revenue was 82,300, the depreciation expense was 14,300, and the net income was 68,000arrow_forwardStatement of Cash Flows The following is a list of the items to be included in the preparation of Warrick Company's 2019 statement of cash flows: Net income, $53,600 Payment for purchase of building, $99,000 Increase in accounts receivable, $7,000 Proceeds from issuance of common stock, $37,500 Increase in accounts payable, $4,800 Proceeds from sale of land, $7,000 Depreciation expense, $17,000 Payment of dividends, $34,000 Gain on sale of land, $3,000 Decrease in inventory, $3,900 Payment for purchase of long-term investments, $8,000 Amortization of discount on bonds payable, $1,100 Proceeds from issuance of note, $17,000 Increase in deferred taxes payable, $4,300 Equipment acquired by capital lease, $16,100 Decrease in salaries payable, $2,400 Beginning cash balance, $20,300 Required 1. Prepare the statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.arrow_forward
- Income Statement Information (2021): 1. Net income for the year ending December 31, 2021 is $43,500. 2. Depreciation expense is $6,000. 3. There is a loss of $3,000 resulted from the sale of long-term investment. Additional information (2021): 1. All sales and purchases of inventory are on account (or credit). 2. Received cash for the sale of long-term investments that had a cost of $27,000, yielding a $3,000 loss. 3. Cash dividends paid is $15,000. 4. The company purchased new machines and tools for $7,500 cash. Required: Prepare the FIRST (Operating) and the SECOND (Investing) sections of the statement of cash flows for the year ended December 31, 2021.arrow_forwardA summary of cash flows for Conching Printing for the year ended May 31, 2020, is shown below. Cash receipts: Cash received from fees earned P 1,500,000.00 Additional investment of owner 75,000.00 Cash payments: Cash paid for expenses 1,215,000.00 Cash paid for equipment 240,000.00 Cash paid to owner for personal use 66,000.00 Determine the net cash flows from operating activities.arrow_forwardG. Prepare a statement of cash flow on both direct and indirect method 2019 2018 Assets: Cash 140,000 60,000 Accounts receivable, net 84,000 70,000 Allowance for doutful accounts (7,000) (5,000) Inventory 55,000 50,000 Prepaid expenses 22,000 20,000 Investments 70,000 20,000 Property, plant & equipment 660,000 500,000 Accumulated depreciation -100,000 -60,000 Patents 16,000 20,000 Total Assets 940,000 675,000 Liabilities & Equity Accounts payable 30,000…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Property, Plant and Equipment (PP&E) - Introduction to PPE; Author: Gleim Accounting;https://www.youtube.com/watch?v=e_Hx-e-h9M4;License: Standard Youtube License