A long term investment in bonds with a cost of $500000 was sold for $600000 cash. (a) what was the gain or loss on the sale? (b) what was the effect of the transaction on cash flows? (c) how should the transaction be reported on the statement of cash flows if cash flows from operating activities are reported by the indirect method?

Q: On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale of…

A: Cash flows using indirect method tries to adjust the net income for showing changes in financial…

Q: If a gain of $30,000 is incurred in selling (for cash) long-term investments having a book value of…

A: Cash flow statement is a statement showing the inflow and outflow of cash from different activities…

Q: On the statement of cash flows, increases and decreases in long-term assets resulting fromcash…

A: Classification of activities in cash flow statement   Following are the four classifications of cash…

Q: When a company purchases and retires its bonds, which of the following is the correct reporting on…

A: Cash flow statement: It is one of the financial statements prepared at the end of a particular…

Q: Find the free cash flows to the debt and equity holders using the below information. Note interest…

A:

Q: Indicate the section (operating activities, investing activities, financing activities, or none) in…

A: Financial statements includes the Statement of Profit or Loss, Statement of Financial Position and…

Q: Indicate the section (operating activities, investing activities, financing activities, or none) in…

A: Cash flow statement is a summary of application and sources of cash during a span of time. And we…

Q: A corporation uses the indirect method of preparing the statement of cash flows. A fixed asset has…

A: Under indirect method of preparing statement of cash flows, all non cash incomes are deducted from…

Q: Please answer the following questions: What is the principal disadvantage of the direct method of…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Based on the following information, compute cash flows from financing activities under GAAP.…

A: Calculating cash flow from financing activities as per GAAP. We have,Cash Flow from Financing…

Q: classifying Cash Flows Identify the type of cash flow activity for each of the following events…

A: The cash flow statement contains three activities such as cash from operating activities, cash from…

Q: A long-term investment in bonds with a cost of $500,000 was sold for $600,000 cash. (a) What was the…

A: a. Calculate the amount of gain or loss on the sale

Q: I just want a cash flow statement: Operating Activities    net income depreciation and amortization…

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: Which of the following types of transactions would be reported as a cash flow from investing…

A: issuance of bonds payable: financing activity issuance of capital stock: financing activity purchase…

Q: From the following identify the line items that appear in the section of cash flow from financing…

A: There are three types of cash flow activities: Operating activities Investing activities Financing…

Q: 6. Cash flows from investing activities include: A. Payments to purchase property, plant and…

A: Cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents…

Q: Flows-Investing Activities The accountant for Foster Institute, Inc.. determined the cash flow for…

A: CASH FLOW STATEMENT PARTICULARS AMOUNT ($) CASH FLOW FROM FINANCING ACTIVITIES    PROCEEDS…

Q: On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale of…

A: When Statement of cash flows is prepared using the indirect method, then the cash flow from…

Q: 1. The following item would be classified as an investing activity on the statement of cash flows: *…

A: Answer -  1. Correct Option is Option B - Acquisition of Equipment.  Because, Items reported on a…

Q: A company purchased a parcel of land using a long- term note payable. Using the direct method, where…

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…

Q: Classifying Items in the Statement of Cash Flows The following items are commonly reported in a…

A: Definition: The cash flow statement is the part of financial statements that shows how much cash…

Q: The statement of cash flows reports the cash proceeds from issuing a bond as a cash flow from…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: On the statement of cash flows, the cash flows from financing activities section would include all…

A: The cash flow statement determines the total uses and sources of cash that occurred to a business…

Q: If a gain of $8,652 is realized in selling (for cash) office equipment having a book value of…

A: Statement of cash flows is one of the financial statement which shows all cash inflows and cash…

Q: On the statement of cash flows, the cash flows from investing activities section would include   a.…

A: Cash flows from Investing activities : Investing activities represent the extent to which…

Q: How do you prepare determine the cash generated/used in investing activities and financing…

A: Answer:

Q: Identify the section of the statement of cash flows (a–d) where each of the following items would be…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: If a gain of $8,077 is realized in selling (for cash) office equipment having a book value of…

A: The cash flow statement includes the amount of cash received or paid.

Q: If a company purchased avalaible for sale securities with cash, this would be reported on the…

A: This is the purchase of security with the intent of selling before it reaches maturity. These type…

Q: The issuance of common stock in exchange for cash is reported in:a. the operating activities section…

A:

Q: In the course of preparing a company's statement of cash flows, the following figures are to be…

A: We have the following information: Depreciation Charges: $980,000 Profit on sale of non-current…

Q: XYZ Co. had the following activities in 2020: Issue of Bonds OMR 15000 Increase in receivables OMR…

A: The cash flow statement analyse the cash flow from various activities in the business.

Q: Activity reported in the Financing Activities section of the statement of cash flows would include…

A: Financing Activities section of the statement of cash flows would include accounts classified as…

Q: Classifying Cash Flows Identify the type of cash flow activity for each of the following events…

A: Cash flow statements are financial statements that show complete data regarding the cash and its…

Q: According to the information given in the table below, which of the following is cash flow from…

A: Cash Flow from Financing Activities   CALCULATION PARTICULAR AMOUNT       ADD Increase in…

Q: Under the indirect method, how much should be reported as cash flows from operating activities?  a.…

A: Introduction: Statement of cash flows: All cash in and out flows are shown in statement of cash…

Q: The statement of cash flows helps analysts evaluate all but which of the following? Multiple Cholce…

A: The amount of debt relative to equity

Q: On the statement of cash flows prepared by the indirect method, the Cash flows from operating…

A: Operating cash flows refers to money which is generated by the activities of business on a daily…

Q: Cash flows from operating activities section would include   a. receipts from the sale of…

A: Answer – Correct answer is c. gains or losses on fixed assets – In indirect method of cash flows,…

Q: Classifying Cash Flows Identify the type of cash flow activity for each of the following events…

A: Statement of cash flows: It is one of the financial statement that shows the cash and cash…