The loss on the cash sale of equipment was $20,125 (details in b). Sold equipment costing 591,875, with accumulated depreciation of $45,125, for $26, 625 cash. Purchased equipment costing $111,375 by paying $60,000 cash and signing a long- term notes payable for the balance. Paid $52,125 cash to reduce the long-term notes payable. Issued 4,000 shares of common stock for $20 cash per share. Declared and paid cash dividends of $53, 100. Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year.

The loss on the cash sale of equipment was $20,125 (details in b). Sold equipment costing 591,875, with accumulated depreciation of $45,125, for $26, 625 cash. Purchased equipment costing $111,375 by paying $60,000 cash and signing a long- term notes payable for the balance. Paid $52,125 cash to reduce the long-term notes payable. Issued 4,000 shares of common stock for $20 cash per share. Declared and paid cash dividends of $53, 100. Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 52P: Balance sheets for Brierwold Corporation follow: Additional transactions were as follows: a....

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a. The loss on the cash sale of equipment was $5125(details in b). b.Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. The Statement of cash flows is not complete can you please fill in the blanks and correct the two marked wrong? thank you c. Purchased equipment costing $96,375 By paying $30,000 cash and signing a lon-term notes payable for the balance. d. Paid $46,125 cash to reduce the long-term notes payable. e. Issued 2,500 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,100.
Assume a company had net income of $62,000. It provided the following excerpts from its balance sheet: This Year Last Year Current assets: Accounts receivable $ 41,000 $ 46,000 Inventory $ 57,000 $ 53,000 Current liabilities: Accounts payable $ 42,000 $ 49,000 Income taxes payable $ 14,000 $ 14,000 The company sold a piece of equipment for cash proceeds of $25,000. The original cost of the asset was $85,000 and its accumulated depreciation at the time of sale was $65,000. The company’s accumulated depreciation account has beginning and ending balances of $320,000 and $280,000, respectively. Based solely on the information provided, the net cash provided by operating activities would be: Multiple Choice $71,000. $73,000. $83,000. $76,000.
For each of the following separate transactions: Sold a building costing $30,500, with $20,200 of accumulated depreciation, for $8,200 cash, resulting in a $2,100 loss. Acquired machinery worth $10,200 by issuing $10,200 in notes payable. Issued 1,020 shares of common stock at par for $2 per share. Long-term notes payable with a carrying value of $40,100 were retired for $47,200 cash, resulting in a $7,100 loss. (a) Prepare the reconstructed journal entry. (b) Identify the effect it has, if any, on the investing section or financing section of the statement of cash flows.
Assume a company had net income of $60,000. It provided the following excerpts from its balance sheet: This Year Last Year Current assets: $ 41,000 $ 57,000 $ 46,000 $ 53,000 Accounts receivable Inventory Current liabilities: $ 42,000 $ 14,000 $ 49,000 $ 14,000 Accounts payable Income taxes payable The company sold a piece of equipment for cash proceeds of $25,000. The original cost of the asset was $85,000 and its accumulated depreciation at the time of sale was $65,000. The company's accumulated depreciation account has beginning and ending balances of $320,000 and $280,000, respectively. Based solely on the information provided, the net cash provided by operating activities would be:
State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: Retired $330,000 of bonds, on which there was $3,300 of unamortized discount, for $343,000. Sold 12,000 shares of $20 par common stock for $46 per share. Sold equipment with a book value of $47,800 for $68,800. Purchased land for $349,000 cash. Purchased a building by paying $56,000 cash and issuing a $120,000 mortgage note payable. Sold a new issue of $170,000 of bonds at 97. Purchased 5,700 shares of $40 par common stock as treasury stock at $78 per share. Paid dividends of $2.20 per share. There were 32,000 shares issued and 5,000 shares of treasury stock.
Zaire Company had a $26,000 net loss from operations. Depreciation expense for the year was $9,600, and a dividend of $2,000 was declared and paid. The balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End Beginning Cash $3,500 $7,000 Accounts receivable 16,000 27,000 Inventory 51,000 53,000 Prepaid expenses 5,000 9,000 Accounts payable 12,000 8,000 Accrued liabilities 6,000 7,600 Did Zaire Company’s operating activities provide or use cash? Use the indirect method to determine your answer. Use negative signs with cash outflow answers and to indicate operating activities used cash, if applicable.
Kraco Corporation reported net income of $450,000, including the effects of depreciation expense of $60,000, and amortization expense on a patent of $10,000. Also, cash of $50,000 was borrowed on a 5-year note payable. Based on this data, total cash inflow from operating activities using the indirect method was: O a. $520,000 O b. $470,000 OC. $440,000 O d. $570,000
Jefferson Enterprises acquired assets and liabilities of Alaska Company for P600,000. At that date, Alaska Company had the following book values and market values: Account.. Book Value . . Market Value Cash and Receivables P25,000.. P25,000 Inventory. 125,000. 180,000 Plant Assets (net). 300,000. 475,000 Current Liabilities. (60,000). - (60,000) Long-term Debt. (120,000).. (120,000) Ordinary Shares. (15,000) Retained Earnings. (255,000) (do not use comma on the answer. Follow this format: P1 250 000) 1. What amount is included in the balance sheet after the business combination with regard to inventory? 2. What amount is included in the balance sheet after the business combination with regard to plant assets? 3. What amount is included in the balance sheet after the business combination with regard to goodwill? P100 000
ABC Co. sold for P12, 000 an equipment with original cost of P140,000 and accumulated depreciation of P130,000. ABC Co. accepted a down payment of P3,000 and a 180-day, 8% note for the balance. How much must be reported as an investing activity on ABC Co.’s statement of cash flows?
Additonal information: 1 New plant assets costing 320,000 were purchased for cash during the year. 2. Old plant assets having an orginal cost of 184,000 and accumulated depreciation of 155,200 were sold for 4800 cash. 3. Bonds payable matured and were paid off at fac value for cash. 4. A cash dividend of 83296 was declared and paid during the year. 5. Common stock was issued at par for cash. 6. There were no significant noncash transactions. Prepare a statement of cash flows using the indirect method.( Show amounts decreased by using -sign or parenthesis)
Bella Buster Ltd started operations in Whitby in 20X7. The company reported the following in its first two years of operations: 20X7 20X8 Earnings (loss) Depreciation (assets have a cost of $210,000) CCA $110,000 ($150,000) $20,000 $20,000 $35,000 $45,000 Non-deductible expenses $15,000 $10,000 Tax Rate 30 % 30% Required (a) What is the amount of taxable income for each year? (b) How much is the tax refund to be claimed in 20X8? (c) How much is the tax expense (recovery) in 20X8, assuming the use of the loss carryforward is not probable? Show the journal entries.
A company reports net income of $560,000 that Includes depreciation expense of $82,000. Also, cash of $59,000 was borrowed on a 6-year note payable. Based on this data, total cash inflows from operating activities are: Multiple Cholce $478,000. $642,000. $619,000. $701,000.