Chapter 5, Problem 1ANFS

For each of the following transactions, indicate whether operating (O), investing (I), or financingactivities (F) are affected and whether the effect is a cash inflow ( 1 ) or outflow ( 2 ), or (NE) if thetransaction has no effect on cash.TIP: Think about the journal entry recorded for the transaction. The transaction affects net cash flowsif and only if the account Cash is affected.1. Purchased new equipment with cash.2. Recorded and paid income taxes to the federal government.3. Issued shares of stock for cash.4. Prepaid rent for the following period.5. Paid cash to purchase new equipment.

5. The president of Laporte Inc., Tanya Turcotte, was provided with a copy of the operating activities section of the statement of cash flows that you prepared in (1.), and made the following comment: “This report is supposed to show operating cash inflows and outflows during the year, but I don’t see how much cash Laporte Inc. received from customers and how much it paid to trade suppliers and for income taxes. Please ask whoever prepared this statement to provide me with these numbers.” Based on Tanya’s comment, compute the following amounts for 2020: (Enter your answers in millions.) a. Cash collected from customers   b. Cash paid to trade suppliers   c. Cash paid for income taxes

The following Cash T-account shows the total debits and total credits to the Cash account of Thomas Corporation for the current year. 1. Prepare a complete statement of cash flows for the current year using the direct method. 2. Refer to the statement of cash flows prepared for part 1 to answer the following questions. (a) Which section—operating, investing, or financing—shows the largest cash (i) inflow and (ii) outflow? (b) What is the largest individual item among the investing cash outflows? (c) Are the cash proceeds larger from issuing notes or issuing stock? (d) Does the company have a net cash inflow or outflow from borrowing activities?

The cash account balance of FDNACCT came from the following: From clients for service rendered, P361,000, From clients for services to be rendered, P23,000 From a bank loan, P102,000, and From additional investment of the owner, P174,000.    How much is the income of the business?

Emma’s balance sheet showed an accounts receivable balance of $75 000 at the beginning of the year and $97 000 at the end of the year. Emma reported sales of $1 150 000 on her income statement. REQUIRED: Using the direct method, determine the amount that Emma will report as cash collections in the operating activities section of the statement of cash flows.

Shown below are totals of the three sections from the SCF for the Sivad Motel for the year just ended. Analyze this information and prepare a report indicating your opinion regarding its sources and uses of cash and their impact on the future of the company. Your conclusions and recommendations should be supported with proper explanations and assumptions. Statement of Cash Flows             Net cash provided by operating activities             $10,000                                                  Net cash used by investing activities                      (15,000)                                                  Net cash used by financing activities                        (5,000)                                                  Decrease in cash for the year                                   (10,000)                                                  Cash at beginning of year                                           15,000                                                  Cash at end of…

The controller of Newstrom Software, Inc., provides the following information as the basis for a statement of cash flows: Cash collected from customers $785,400   Income taxes paid $58,300 Cash paid for interest 22,100   Payment of dividends 35,000 Cash paid to employees and other suppliers of goods and services 221,750   Principal payments on mortgage payable 60,000 Cash paid to suppliers of merchandise 395,540   Principal payments on long-term debt 22,000 Cash received from the issuance of long-term debt 40,000   Proceeds from the issuance of common stock 85,000 Cash received from disposal of equipment 42,500   Purchase of equipment 120,000 Cash received from sale of long-term investments 71,400   Purchase of long-term investments 75,800 Required: Use a minus sign to indicate any cash outflows: 1.  Using the information provided above, calculate the net cash provided (used) by operating activities. 2.  Using the information provided above, calculate the net cash…

The controller of Newstrom Software, Inc., provides the following information as the basis for a statement of cash flows: Cash collected from customers $785,400   Income taxes paid $58,300 Cash paid for interest 22,100   Payment of dividends 35,000 Cash paid to employees and other suppliers of goods and services 221,750   Principal payments on mortgage payable 60,000 Cash paid to suppliers of merchandise 395,540   Principal payments on long-term debt 22,000 Cash received from the issuance of long-term debt 40,000   Proceeds from the issuance of common stock 85,000 Cash received from disposal of equipment 42,500   Purchase of equipment 120,000 Cash received from sale of long-term investments 71,400   Purchase of long-term investments 75,800 I am having trouble classifying what goes into what category (Operating, Investing, or Financing) for the cash flows and so I wanted to ask about this question while I do it. Use a minus sign to indicate any cash outflows: 1.  Using…

For each of the following transactions indicate whether the cash flow classification is a) an operating activity, b) an investing activity, c) a financing activity or d) a noncash transaction.         Classification   1. Issued common stock for cash.       2. Payment of long-term note payable with cash       3. Sold an investment at book value for cash.       4. Received cash dividends on long-term investments.       5. Converted bonds to common stock.       6. Purchased a piece of equipment with cash.       7. Purchased inventory with cash.       8. Paid the insurance premium for the year.       9. Purchased a new office building with a mortgage.       10. Paid cash dividends.