Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $200,000 of bonds, on which there was $2,000 of unamortized discount, for $208,000. b. Sold 12,000 shares of $10 par common stock for $20 per share. c. Sold equipment with a book value of $51,800 for $74,600. d. Purchased land for $473,000 cash. e. Purchased a building by paying $90,000 cash and issuing a $100,000 mortgage note payable. f. Sold a new issue of $270,000 of bonds at 99. g. Purchased 3,600 shares of $15 par common stock as treasury stock at $29 per share. h. Paid dividends of $2.20 per share. There were 22,000 shares issued and 4,000 shares of treasury stock. Effect Amount Cash payment a. b. Cash receipt C. Cash receipt d. Cash payment Cash payment е. f. Cash receipt Cash payment g. h. Cash payment

If 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.$50,620

Km. 208.

Sweeter Enterprises Inc. has cash flows from operating activities of $539,000. Cash flows used for investments in property, plant, and equipment totaled $210,000, of which 75% of this investment was used to replace existing capacity.a. Determine the free cash flow for Sweeter Enterprises Inc.b. How might a lender use free cash flow to determine whether or not to giveSweeter Enterprises Inc. a loan?

AM. 37.

1. Why does the company add back depreciation to compute net cash flows from operating activities? 2. Why are there changes in accounts receivable and inventories as adjustments to net earnings. Are accounts receivable and inventories balances increasing or decreasing during the year? 3. It is reported that the company invested $572 million in property, plant, and equipment. Is this an appropriate type of expenditure for the company to make? What relation should expenditures for PPE have with depreciation expense?  4. Stryker paid $300 million to repurchase its common stock in fiscal 2018 and, in addition, paid dividends of $703 million. Thus, it paid $1.003 million of cash to its stockholders during the year. How do we evaluate that use of cash relative to other possible uses for the company's cash? 5. Provide an overall assessment of the company's cash flows for fiscal 2018. In the analysis, consider the sources and uses of cash.

Hi-Tech, Inc., reports net income of $70 million. Included in that number are depreciation expense of $6 million and a loss on the sale of equipment of $2 million. Records reveal increases in accounts receivable, accounts payable, and inventory of $3 million, $4 million, and $5 million, respectively. What are Hi-Tech’s net cash flows from operating activities?

Required information E12-13 (Algo) (Supplement B) Computing and Reporting Cash Flow Effects of Sale of Plant and Equipment [The following information applies to the questions displayed below.] During two recent years, Perez Construction, Inc., disposed of the following plant and equipment: Year 1 $ 76,200 Plant and equipment (at cost) Accumulated depreciation on equipment disposed of Cash received Gain (loss) on sale E12-13 Part 1 42,785 20,264 (13, 151) Year 2 $15,900 4,973 14,563 3,636 Required: 1. Determine the cash flow from the sale of property for each year that would be reported in the investing activities section of the cash flow statement. (List cash outflows as negative amounts.)

Burger Palace Corporation reports a net-cash-used for investing activities of $3.4 million and a net-cash-provided by financing activities of $1.6 million. If cash increased by $1.1 million during the year, what was the net cash flow provided from operating activities?   A) $0.7 million   B) $2.9 million   C) $3.9 million   D) $6.1 million

Sweeter Enterprises Inc. has net cash flows from operating activities of $378,000. Cash flows used for investments in property, plant, and equipment totaled $76,000, of which 65% of this investment was used to replace existing capacity. a. Determine the free cash flow for Sweeter Enterprises Inc. b. How might a lender use free cash flow to determine whether or not to give Sweeter Enterprises Inc. a loan? Free cash flow is often used to measure the financial strength of a business. The - free cash flow that a business has, the easier it will be for the company to pay the interest on the loan and repay the loan principal. Sweeter's free cash flow is $ which is very