ACCOUNTING F/GOV.+NON...(LL)
18th Edition
ISBN: 9781266785580
Author: RECK
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 15.4EP
To determine
Identify the category of university that reports investing activity on its direct method statement of
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A nongovernmental not-for-profit organization borrowed $5,000, which it used to purchase a truck. In which section of the organization's statement of cash flows should the transaction be reported?
A.) In cash inflow and cash outflow from investing activities.
B.) In cash inflow and cash outflow from financing activities.
C.) In cash inflow from operating activities and cash outflow from investing activities.
D.) In cash inflow from financing activities and cash outflow from investing activities
9. The cost of construction of a university dormitory
would be shown on a cash flow statement as
a. Cash flows from operations.
b. Cash flows from investing activities.
c. Cash flows from financing activities.
d. Cash flows from noncapital financing.
10. Cash flows from a public university bookstore
would appear on the statement of cash flows as
a. Cash flows from operations.
b. Cash flows from investing activities.
c. Cash flows from financing activities.
d. Cash flows from noncapital financing
11. Public universities must disclose separately in
their cash flow statements
a. Capital and noncapital related investing activities.
b. Capital and noncapital related financing activities.
c. Capital and noncapital related operational activi-
ties.
d. Capital and noncapital related changes in net as-
sets.
From the following information prepare a statement of cash flows on the indirect method for Wishful Thinking College, a not-for-profit college, for the year ended 12/31/21. Make sure you include all required disclosures.
· Increase in net assets $1,000,000
· Increase in cash 855,000
· Increase in Investment Income Receivable 8,000
· Increase in student receivables 32,000
· Decrease in supplies inventory 5,000
· Increase in accounts payable 100,000
· Decrease in deferred tuition revenue 20,000
Included in the change in net assets were the following items:
· Cash gifts for scholarships $100,000
· Cash gifts for equipment acquisition 10,000
· Cash gifts for permanent endowment 500,000
· Gift of land 300,000
· Reclassifications of temporarily restricted amounts 80,000
· Donated services of retired professor teaching
2 online classes per term…
Chapter 15 Solutions
ACCOUNTING F/GOV.+NON...(LL)
Ch. 15 - Prob. 1QCh. 15 - Prob. 2QCh. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - Prob. 5QCh. 15 - Prob. 6QCh. 15 - Prob. 7QCh. 15 - What is UPMIFA, and why is it important to...Ch. 15 - How can the performance of colleges and...Ch. 15 - Prob. 10Q
Ch. 15 - Prob. 12CCh. 15 - Prob. 14CCh. 15 - Prob. 15.1EPCh. 15 - Prob. 15.2EPCh. 15 - Prob. 15.3EPCh. 15 - Prob. 15.4EPCh. 15 - Prob. 15.5EPCh. 15 - Prob. 15.6EPCh. 15 - Prob. 15.7EPCh. 15 - Prob. 15.8EPCh. 15 - Prob. 15.9EPCh. 15 - Prob. 15.10EPCh. 15 - Prob. 16EPCh. 15 - Prob. 17EPCh. 15 - Prob. 18EPCh. 15 - Prob. 19EPCh. 15 - Prob. 20EPCh. 15 - Prob. 21EPCh. 15 - Prob. 22EPCh. 15 - Prob. 23EP
Knowledge Booster
Similar questions
- From the list below categorize the items as they would appear on a: a. Statement of Cash Flow b. Statement of Financial Performance 1. Cash and Cash Equivalent 2. Parish Development Facility 3. Advances to Staff 4. Local Park Fees 5. Inventory and Consumables 6. Special Services 7. Property Rate 8. Social Benefit 9. Market Tolls 10. Consumption of Fixed Assets 11. Infrastructure, Plant and Equipment 12. Permit Fees 13. Proceeds from Sale of Equity 14. Established Posts 15. Development Bonds Issued 16. Business Income 17. Loans Received 18. Local Fund 19. Rent from Land and Building 20. Central Government Salariesarrow_forwardStrawbale, Incorporated purchases a $329,800 building, paying $228,000 in cash and signing a $101,800 promissory note. What will be reported on the statement of cash flows as a result of this transaction? Multiple Choice A $228,000 cash outflow from investing activities and a $101,800 noncash transaction A $329,800 cash outflow from investing activities A $228,000 cash outflow from investing activities and a $101,800 cash inflow from financing activities A $329,800 cash outflow from investing activities and a $101,800 cash inflow from financing activitiesarrow_forwardCategorize the following as source or use of funds. Also classify them under operating,investing and financing activities sections of cashflow statement (indirect method)a. Selling a piece of land b. Dividend paid c. payment of some accrued taxesd. reducing inventory level e. Depreciation charges f. Sale of government bondsarrow_forward
- The following transactions were among those reported by Corfe City's electric utility enterprise fund for Year 1: Cash paid to supplier $ 900,000 Cash received from customer households 2,700,000 Proceeds from the sale of revenue bonds 4,500,000 In the electric utility enterprise fund's statement of cash flows for the year ended December 31, Year 1, what amount should be reported as cash flows from capital and related financing activities? A.) $4,500,000 B.) $5,400,000 C.) $7,200,000 D.) $8,100,000arrow_forwardAssume that a company purchases land for $1,000,000, paying $400,000 cash and borrowing the remainder with a long-term note payable. How should this transaction be reported on a statement of cash flows?arrow_forwardXavier Davis is preparing the statement of cash flows using the indirect method for the National Urban League. The beginning balance in pledges receivable is $20,000 and the ending balance is $12,000. Which of the following describes the way these amounts would be presented in the statement of cash flows? Increase in operating cash flows of $8,000 Increase in financing cash flows of $8,000 Increase in investing cash flows of $8,000 Decrease in operating cash flows of $8,000 Decrease in investing cash flows of $8,000 Decrease in financing cash flows for $8,000arrow_forward
- Jaup Nonprofit has a beginning balance in notes payable of $42,000 and an ending balance of $68,000. During the year, $4,000 of principal payments on notes payable were made. Identify any activity that should be reflected in the statement of cash flows using the indirect method. You must report which section(s) of the statement of cash flows would be affected, as well as the direction and amount for each transaction.arrow_forwardAnswer is complete but not entirely correct. VILLAGE OF SEASIDE PINES ENTERPRISE FUND Reconciliation of Operating Income to Net Cash Provided by Operating Activities For the year ended December 31, 2024 Operating Loss Adjustments: Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable (net) Increase in Due From Other Funds Increase in Supplies Inventory Net Cash Provided (Used) by Operating Activities x x X $ (39,000) $ 49,000 108,000 (14,400) (17,300) (18,900) 98,000arrow_forwardA government reports that its public safety function had expenses of $900,000 last year and program revenues of $200,000 so that its net expenses were $700,000. On which financial statement is this information presented? Choose the correct.a. Statement of activities.b. Statement of cash flows.c. Statement of revenues and expenditures.d. Statement of net position.arrow_forward
- REQUIRED : STATEMENT OF CASHFLOW (OPERATING, INVESTING, FINANCING ACTIVITIES AND NON CASH INVESTING & FINANCING) The following selected data for the Food Factory Corporation were gathered by the accountants for the year ended December 31,2020 who are responsible for preparing the financial statements. Cost of good sold – 47,300 Depreciation Expense – 14,100 Other Operating Expense – 15,700 Loss on sale of Investment – 1,900 Gain on sale of capital assets – 6,200 Sales Revenue – 99,700 Interest revenue – 7,100 Dividend Revenue – 3,200 Salary Expense – 24,700 Interest Expense – 5,200 Income Tax Expense – 2,700 Net Income – 4,600 The cash account began the year with a balance of $32,500 and ended the year with a balance of $191,500. Other relevant data gathered by the accountants. Decreased Account Receivable – 12,600 Increased Inventory – 7,800 Decreased Prepaid Expense – 2,300 Increased Account Payable – 19,400 Increased Salary Payable – 1,400 Decreased Accrued Liabilities –…arrow_forward1. Prepare a Statement of Cash Flows (Indirect Method) 2. Prepare the Operating Activities section under the Direct Method As of June 30, 2020, the organization had $165,814 of cash on hand at the beginning of the year. During the year, the center received cash from contributors: $310,400 that was unrestricted and $38,200 that was restricted for the purpose of equipment for the center, it had $9,300 of income earned and received on long-term investments. The center spent cash of $288,510 on salaries and fringe benefits, $23,000 on the purchase of equipment for the center, and $86,604 for operating expenses. Other pertinent information follows: net pledges receivable increased $5,700, inventory increased $1,100, accounts payable decreased $103,094, and there were no salaries payable at the beginning of the year. Cash paid for operating expenses Cash paid to employees Cash received as investment income Cash received from contributions Change in Net Assets (From Statement of Activities)…arrow_forwardBased on the following information, compute cash flows from financing activities under GAAP.Purchase of investments $ 250Dividends paid 1,200Interest paid 400Additional borrowing from bank 2,800arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning