Please provide answer in text (Without image) Headland Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the followinginformation.CashAccounts receivableInventoryEquity investmentsBuildingsEquipmentCopyrightsTotalsAllowance for doubtful accountsAccumulated depreciation-equipmentAccumulated depreciation-buildingsAccounts payableDividends payableNotes payable, short-term (nontrade)Long-term notes payableCommon stockRetained earnings1.Additional data related to 2025 are as follows.23.4.5.6.7.December 312025$38.90012.20011.800-0--0-40.4005,000$108,300$3.0002.000-0-5,000-0-3,00036.0002024$12.8009.90010.0003.10029.60020.2005.200$90,800$4,6004.5005.9004,0004,9004,00025.00038.000 33.00021,300$108,3004.900$90.800Equipment that had cost $10.900 and was 30% depreciated at time of disposal was sold for $2.500.$5.000 of the long-term note payable was paid by issuing common stock.Cash dividends paid were $4,900.On January 1, 2025, the building was completely destroyed by a flood. Insurance proceeds on the building were $32,800 (netof $4.000 taxes).Equity investments (ownership is less than 20% of total shares) were sold at $1.600 above their cost. No unrealized gains orlosses were recorded in 2025.Cash of $15.100 and a long-term note for $16,000 were given for the acquisition of equipment.Interest of $1.900 and income taxes of $5,000 were paid in cash.(a) Use the indirect method to analyze the above information and prepare a statement of cash flows for Headland (Show amounts thatdecrease cash flow with either a-sign e.g. -15,000 or in parenthesis eg. (15,000))

The cash flow statement is prepared at the end of the period to determine the cash position. It…

Headland Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. Cash Accounts receivable Inventory Equity investments Buildings Equipment December 31 2025 $38.900 12.200 11.800 -0- 40,400 5.000 2024 $12.800 9.900 10,000 3.100 29,600 20.200 5000

Headland Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. Cash Accounts receivable Inventory Equity investments Buildings Equipment December 31 2025 $38.900 12.200 11.800 -0- 40,400 5.000 2024 $12.800 9.900 10,000 3.100 29,600 20.200 5000

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.2E

See similar textbooks

Similar questions

Analysis of Longmind Companys accounts revealed the following activity for Equipment, with descriptions added for clarity of analysis. How would these two transactions be reported for cash flow purposes? Note the section of the statement of cash flow, if applicable, and if the transaction represents a cash source, cash use, or noncash transaction.
Use the following cash transactions relating to Warthoff Company to determine the cash flows from operating, using the direct method.
Classification of Cash Flows A company's statement of cash flows and the accompanying schedule of investing and financing activities not affecting cash may contain the following major sections: a. Operating Activities b. Investing Activities c. Financing Activities d. Investing and Financing Activities not Affecting Cash The following is a list of items that might appear on a company's statement of cash flows or in the accompanying schedule. Required: Using the letters A through D, indicate in which section of the statement of cash flows (or the accompanying schedule) the preceding item would most likely be classified. After each letter, indicate with a plus (+) or a minus () whether the item would be reported on the statement (or the accompanying schedule).
Classification of Cash Flows Patel Company reported the following items in its statement of cash flows presented using the indirect method. a. Issuance of common stock b. Cash paid for interest c. Sold equipment for cash d. Receipt of cash dividend on investment e. Repayment of principal on long-term debt f. Loss on disposal of equipment. Required: Indicate whether each item should be classified as a cash flow from operating activities, a cash flow from investing activities, a cash flow from financing activities. Use the following information for Cornerstone Exercises 11-16 and 11-17: A review of the balance sheet of Peterson Inc. revealed the following changes in the account balances: a. Increase in long-term investment b Increase in accounts receivable c. Increase in common stock d. Increase in long-term debt e. Decrease in accounts payable f. Decrease in supplies inventory g. Increase in prepaid insurance h. Decrease in retained earnings
Match the individual transactions listed below with their statement of cash flows classification, using the following code: Cash inflow from operating activitiesCash outflow from operating activitiesCash inflow from investing activitiesCash outflow from investing activitiesCash inflow from financing activitiesCash outflow from financing activitiesNone of the above Payments for merchandisePayments for interestPayments for dividendsPayments for plant and equipmentPayments for bond payable retirementsPayments for marketable securitiesPayments for employeesPayments to governmentsIssuing a stock dividendCash from customersCash from issuing common shareCash from dividendsCash from sale of old buildingCash from interest
Which of the following best describes the indirect method of preparing the operating activities section of the statement of cash flows? a. Net income reconciled from accrual basis to cash basis.b. A list of cash inflows and cash outflows from transactions involving the purchase and sale of longterm assets and current investments.c. A list of cash inflows and cash outflows from transactions related to revenue and expense activities.d. A list of cash inflows and cash outflows from transactions with lenders and stockholders.
Classifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. AnswerOperatingInvestingFinancing AnswerAddSubtract 2. Repurchases of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 3. Purchases of property and equipment. AnswerOperatingInvestingFinancing AnswerAddSubtract 4. Sale of investments classified as long-term. AnswerOperatingInvestingFinancing AnswerAddSubtract 5. Proceeds from the issuance of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 6. Increase in prepaid expenses and other current assets. AnswerOperatingInvestingFinancing AnswerAddSubtract 7. Acquisition for cash of a competitor.…
Please classify each of the following accounts into its right category of cash flow activities. Which of the following item(s) belong to Operation Activities? (This question may contain multiple answers) Depreciation Fixed assets expenses Change in Inventories Change in Accounts Payable Payment of cash dividends Change in Notes Payable Payment of long-term debt Change in marketable securities Net income Change in ACcount Receivables
Classification of Cash Flows: For each of the following items, indicate whether the cash flow relates to an operating activity, an investing activity, or a financing activity. Cash receipts from customers for services rendered Sale of long-term investments for cash Acquisition of PPE for cash Payment of income taxes Bonds payable issued for cash Payment of cash dividends declared in previous year Purchase of short-term investments (not cash equivalents) for cash
Choose the combination that best reflects the appropiate classification of cash received from operating, investing and financing activities: For your answer, enter either a or b or c or d. Operating Investing Financing a. Cash paid by customer Sales of fixed assets issuance of bonds payable b. Dividends received cash paid by customers issuance of bonds payable c. Sale of fixed assets dividends received cash paid by customers d. Issuance of bonds payable sale of operational assets dividends…
Please classify each of the following accounts into its right category of cash flow activities. Which of the following item(s) belong to Operation Activities? (This question may contain multiple answers) Depreciation Fixed assets expenses Change in Inventories Change in Accounts Payable Payment of cash dividends Change in Notes Payable Payment of long-term debt Change in marketable securities Net income Change in Account Receivables
The statement of cash flows classifies all cash inflows and outflows into one of the three categories shown below and lettered from a through c. In addition, certain transactions that do not involve cash are reported in the statement as noncash investing and financing activities, labeled d. a. Operating activities b. Investing activities c. Financing activities d. Noncash investing and financing activities Required: For each of the following transactions, use the letters above to indicate the appropriate classification category. 1. _____ Purchase of equipment for cash. 2. _____ Payment of employee salaries. 3. _____ Collection of cash from customers. 4. _____ Cash proceeds from a note payable. 5. _____ Purchase of common stock of another corporation for cash 6. _____ Issuance of common stock for cash. 7. _____ Sale of equipment for cash. 8. _____ Payment of interest on note payable. 9. _____ Issuance of bonds payable in exchange for land and building. 10. _____ Payment of cash…