FINANCIAL ACCOUNTING FUNDAMENTALS W/ CO
7th Edition
ISBN: 9781264017478
Author: Wild
Publisher: MCG
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Chapter 12, Problem 9QS
To determine
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 show: The effect of each given transaction on the investing
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Indicate the effect each separate transaction has on investing cash flows. a. Sold a truck costing $40,000, with $22,000 of accumulated depreciation, for $8,000 cash. The sale results in a $10,000 loss. b. Sold a machine costing $10,000, with $8,000 of accumulated depreciation, for $5,000 cash. The sale results in a $3,000 gain. c. Purchased stock investments for $16,000 cash. The purchaser believes the stock is worth at least $30,000.
Computing cash flows for investing and financing activities
Consider the following facts for Java Jolt:
a. Beginning and ending Retained Earnings arc $45,000 and $70,000, respectively, Net income for the period is $60,000.
b. Beginning and ending Plant Assets arc $124,500 and $134,500, respectively.
c. Beginning and ending Accumulated Depreciation—Plant Assets are $21,500 and $26,500, respectively.
d. Depreciation Expense for the period is $17,000, and acquisitions of new plant assets total $29,000. Plant assets were sold at a $5,000 gain.
Requirements
How much are cash dividends?
What was the amount of the cash receipt from the sale of plant assets?
Computing cash flows for investing and financing activities
Consider the following facts for Java Jolt:
Beginning and ending Retained Earnings arc $45,000 and $70,000, respectively, Net income for the period is $60,000.
Beginning and ending Plant Assets arc $124,500 and $134,500, respectively.
Beginning and ending Accumulated Depreciation—Plant Assets are $21,500 and $26,500, respectively.
Depreciation Expense for the period is $17,000, and acquisitions of new plant assets total $29,000. Plant assets were sold at a $5,000 gain.
Requirements
How much are cash dividends?
What was the amount of the cash receipt from the sale of plant assets?
Chapter 12 Solutions
FINANCIAL ACCOUNTING FUNDAMENTALS W/ CO
Ch. 12 - Prob. 1MCQCh. 12 - Prob. 2MCQCh. 12 - Prob. 3MCQCh. 12 - Prob. 4MCQCh. 12 - Prob. 5MCQCh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQ
Ch. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQCh. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 13DQCh. 12 - Prob. 14DQCh. 12 - Prob. 15DQCh. 12 - Prob. 1QSCh. 12 - Prob. 2QSCh. 12 - Prob. 3QSCh. 12 - Prob. 4QSCh. 12 - Prob. 5QSCh. 12 - Prob. 6QSCh. 12 - Prob. 7QSCh. 12 - Prob. 8QSCh. 12 - Prob. 9QSCh. 12 - Prob. 10QSCh. 12 - Prob. 11QSCh. 12 - Prob. 12QSCh. 12 - Prob. 13QSCh. 12 - Prob. 14QSCh. 12 - Prob. 15QSCh. 12 - Prob. 16QSCh. 12 - Prob. 17QSCh. 12 - Prob. 18QSCh. 12 - Prob. 19QSCh. 12 - Prob. 20QSCh. 12 - Prob. 21QSCh. 12 - Prob. 22QSCh. 12 - Prob. 23QSCh. 12 - Prob. 24QSCh. 12 - Prob. 25QSCh. 12 - Direct: Computing operating cash outflows P5 Refer...Ch. 12 - Prob. 27QSCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Prob. 19ECh. 12 - Prob. 20ECh. 12 - Prob. 1PSACh. 12 - Prob. 2PSACh. 12 - Prob. 3PSACh. 12 - Prob. 4PSACh. 12 - Prob. 5PSACh. 12 - Prob. 6PSACh. 12 - Prob. 7PSACh. 12 - Prob. 8PSACh. 12 - Prob. 1PSBCh. 12 - Prob. 2PSBCh. 12 - Prob. 3PSBCh. 12 - Prob. 4PSBCh. 12 - Prob. 5PSBCh. 12 - Prob. 6PSBCh. 12 - Prob. 7PSBCh. 12 - Prob. 8PSBCh. 12 - Prob. 12SPCh. 12 - Prob. 1GLPCh. 12 - Prob. 2GLPCh. 12 - Prob. 3GLPCh. 12 - Prob. 1AACh. 12 - Prob. 2AACh. 12 - Prob. 3AACh. 12 - Prob. 1BTNCh. 12 - Prob. 2BTNCh. 12 - Prob. 3BTNCh. 12 - Prob. 4BTNCh. 12 - Prob. 5BTNCh. 12 - Prob. 6BTNCh. 12 - Prob. 7BTN
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- Which item is added to net income when computing cash flows from operating activities? a. Gain on the disposal of property, plant, and equipment b. Increase in wages payable c. Increase in inventory d. Increase in prepaid rent Use the following information for Multiple-Choice Questions 11-9 and 11-10: Cornett Company reported the following information: cash received from the issuance of common stock, $150,000; cash received from the sale of equipment, $14,800; cash paid to purchase an investment, $20,000; cash paid to retire a note payable, $50,000; and cash collected from sales to customers, $225,000.arrow_forwardAssume a company’s balance sheet showed beginning and ending balances in the Long-Term Investments account of $1,100,000 and $900,000, respectively. The company sold a long-term investment that cost $300,000 and recorded a gain on this sale of $35,000. Based solely on the information provided, the company’s net cash provided by (used in) investing activities would be: Multiple Choice $200,000. $300,000. $235,000. $335,000.arrow_forwardIf a gain of $8,187 is realized in selling (for cash) office equipment having a book value of $57,511, find the total amount reported in the cash flows from investing activities section of the statement of cash flows. Select the correct answer. $49,324 $57,511 $65,698 $8,187arrow_forward
- If a gain of RO 20,.000 is made in relation to selling (for cash) office equipment having a book value of RO Bo.000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is Select one O a RO 60,00o. O b RO20,0o0. c RO 100,000. O d RO 80.0o00.arrow_forwardO On the Statement of Cash Flows a $5,000 gain on the sale of investements would be: Multiple Choice an addition to the Investing section a deduction from the Operating section a deduction from the Investing section an addition to the Financing sectionarrow_forwardIf a gain of $8,652 is realized in selling (for cash) office equipment having a book value of $50,620, the total amount reported in the investing activities section of the statement of cash flows is a.$41,968 b.$59,272 c.$8,652 d.$50,620arrow_forward
- Indicate the effect each separate transaction has on investing cash flows. Note: Amounts to be deducted should be indicated with a minus sign.. a. Sold a truck costing $40,000, with $22,000 of accumulated depreciation, for $8,000 cash. The sale results in a $10,000 loss. b. Sold a machine costing $10,000, with $8,000 of accumulated depreciation, for $5,000 cash. The sale results in a $3,000 gain. c. Purchased stock investments for $16,000 cash. The purchaser believes the stock is worth at least $30,000. Answer is not complete. Cash flows from investing activities Cash received from sale of truck Cash received from sale of machine Cash paid for purchase of investment S 8,000 5,000 (16,000) › › › $ (3,000)arrow_forwardCheck n QS 12-9 (Algo) Computing investing cash flows LO P3 Indicate the effect each separate transaction has on investing cash flows. (Amounts to be deducted should be indicated with a minus sign.) a. Sold a truck costing $42,000, with $22,800 of accumulated depreciation, for $8,800 cash. The sale results in a $10,400 loss. b. Sold a machine costing $11,400, with $8,400 of accumulated depreciation, for $5,800 cash. The sale results in a $2,800 gain. c. Purchased stock investments for $18,000 cash. The purchaser believes the stock is worth at least $30,800. Cash flows from investing activities Co search 99+ 70°F Cloudy DI -> "brt se back T PI G K MIarrow_forwardCash Received from: Sales to customers Interest on investment Collection of note receivable Sale of investments Issuance of notes payable Sale of long-term asset Issuance of equity Cash Paid for: Purchase of inventory Interest on notes payable Purchase of equipment Salaries to employees Operating expenses Dividends to stockholders Purchase of supplies Income and property taxes Purchase of property Repurchase of stock $ 475,000 6,000 50,000 30,000 202,000 40,000 228,000 $ 33,000 5,000 18,000 140,000 25,000 20,000 3,000 11,000 400,000 8,000 The balance of cash at the beginning of 2024 was $220,000. दे Required: Prepare a statement of cash flows for the year for Shepa Incorporated, (Hint. For operating, investing, and financing activities, list the inflows and subtract the outflows to calculate net cash flows for each type of activity.) Note: Amounts to be deducted should be indicated with a minus sign.arrow_forward
- If a gain of $8,520 is realized in selling (for cash) office equipment having a book value of $52,917, the total amount reported in the Cash flows from investing activities section of the statement of cash flows is a.$52,917 b.$44,397 c.$61,437 d.$8,520arrow_forward7. Use the following cash flow data for Rocket Transport to find Rocket’s:a. Net cash provided by or used in investing activities.b. Net cash provided by or used in financing activities.c. Net increase or decrease in cash for the year. Cash dividend $100,000Purchase of bus $73,000Interest paid on debt $45,000Sales of old equipment $92,000Repurchase of stock $95,000Cash payments to suppliers $115,000Cash collections from customers $500,000arrow_forwardCalculate cash flow from investing activities. Year 0 Year 1 10.0 20.0 50.0 61.0 100.0 120.0 160.0 201.0 Cash Accounts receivable Net PP&E Total assets Accounts payable Accrued expenses Long term debt Common stock Retained earnings Total liabilities and equity Depreciation Net income Select one: (49.0) (20.0) 20.0 (50.0) 30.0 40.0 40.0 30.0 10.0 31.0 10.0 15.0 70.0 160.0 1 29.0 21.0 85.0 201.0 30.0 22.0arrow_forward
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