a.
Introduction: A company prepares a statement of cash flow for calculating the amount of net decrease or increase in the cash balance during the year. The outflow and inflow of cash from the financing, operating, and investing activities are used to calculate the amount of decrease or increase in the cash balance during the year.
To calculate: The amount of cash received by A from the sale of building.
b.
Introduction: A company prepares a statement of cash flow for calculating the amount of net decrease or increase in the cash balance during the year. The outflow and inflow of cash from the financing, operating, and investing activities are used to calculate the amount of decrease or increase in the cash balance during the year.
To calculate: The amount of
c.
Introduction: A company prepares a statement of cash flow for calculating the amount of net decrease or increase in the cash balance during the year. The outflow and inflow of cash from the financing, operating, and investing activities are used to calculate the amount of decrease or increase in the cash balance during the year.
To calculate: The cost of new building purchased by A during the year.
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Chapter 12 Solutions
FINANCIAL ACCOUNTING FUNDAMENTALS W/ CO
- Partially Completed Spreadsheet Hanks Company has prepared the following changes in account balances for the spreadsheet to support its 2019 statement of cash flows: Additional information: The net income was 1,300. Depreciation expense was 350, and patent amortization expense was 100. At the end of 2019, long-term investments were purchased at a cost of 1,550. Land that cost 700 was sold for 900. On December 31, 2019, bonds payable with a face value of 2,000 were issued for equipment valued at 2,300. Two hundred shares of common stock were issued at 7 per share. Forty shares of common stock were issued as a small stock dividend, the relevant market price being 5 per share. Cash dividends declared and paid totaled 600. Required: On the basis of the preceding information, complete the spreadsheet.arrow_forwardPreparing a Statement of Cash Flows Volusia Company reported the following comparative balance sheets for 2019: Required: Prepare a statement of cash flows for Volusia using the indirect method to compute net cash flow from operating activities.arrow_forwardSelected information from Brook Corporations accounting records and financial statements for 2019 follows: On the statement of cash flows for the year ended December 31, 2019, Brook should disclose a net increase in cash in the amount of: a. 1,700,000 b. 2,400,000 c. 3,700,000 d. 4,200,000arrow_forward
- Determining Cash Flows from Financing Activities Solomon Construction Company reported the following amount on its balance sheet at the end of 2019 and 2018 for notes payable: Required: 1. If Solomon did not repay any notes payable during 2019, determine how much cash Solomon received from the issuance of notes payable. 2. If Solomon repaid $40,000 of notes payable during 2019, determine what amounts Solomon would report in the financing activities section of the statement of cash flows.arrow_forwardUse the following excerpts from Tungsten Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.arrow_forwardUse the following excerpts from Stern Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.arrow_forward
- Use the following information from Berlin Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.arrow_forwardComprehensive: Balance Sheet from Statement of Cash Flows Mills Company prepared the following balance sheet at the beginning of 2019: Additional information related to the statement of cash flows: 1. The long-term bonds have a face value of 6,000 and were issued on December 31, 2019. 2. The building was purchased on December 30, 2019. 3. The land was sold at its original cost. 4. The common stock which was sold totaled 300 shares and had a par value of 10 per share. Required: Next Level Prepare a classified balance sheet for Mills as of December 31, 2019. (Hint. Review the information on the statement of cash flows and the balances in the beginning balance sheet accounts to determine the impact on the ending balance sheet accounts.)arrow_forwardUse the following excerpts from Wickham Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.arrow_forward
- Use the following excerpts from Mountain Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.arrow_forwardInterest and Income Taxes Staggs Company has prepared its 2019 statement of cash flows. In conjunction with this statement, it plans to disclose the interest and income taxes it paid during 2019. The following information is available from its 2019 income statement and beginning and ending balance sheet: Required: 1. Compute the amounts of interest paid and income taxes paid by Staggs for 2019. 2. Next Level Under IFRS, how would interest paid and income taxes paid be reported?arrow_forwardConsider the following balance sheet and income statement for Metro Eagle Outfitters, in condensedform, including some information from the cash flow statement:Balance Sheet 2019 2018 2017Cash and short-term investments $ 630,992 $ 745,044 $ 734,693Accounts receivable 46,321 40,310 36,721Inventory 332,452 367,514 301,208Other current assets 132,035 134,620 101,788Total current assets 1,141,800 1,287,488 1,174,410Long-lived assets 582,832 647,482 593,802Total assets $ 1,724,632 $ 1,934,970 $ 1,768,212Current liabilities $ 432,902 $ 405,401 $ 387,837Total liabilities 503,445 517,786 417,141Shareholders’ equity 1,221,187 1,417,184 1,351,071Total debt and equity $ 1,724,632 $ 1,934,970 $ 1,768,212Income StatementSales $ 3,475,802 $ 3,120,065 $ 2,945,294Cost of sales 2,085,480 1,975,471 1,763,143Gross margin $ 1,390,322 $ 1,144,594 $ 1,182,151Operating expenses 988,284 869,385 864,776Earnings before interest and taxes $ 402,038 $ 275,209 $ 317,375Net income $ 232,108 $ 151,705 $…arrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
- Fundamentals Of Financial Management, Concise Edi...FinanceISBN:9781337902571Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
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