Requirements Calculate the following items for the statement of cash flows: a. Beginning and ending Plant Assets, Net, were $99,000 and $96,000, respectively. Depreciation for the period was $9,000, and purchases of new plant assets were $28,000. Plant assets were sold at a gain of $3,000. What were the cash proceeds of the sale? b. Beginning and ending Retained Earnings were $35,000 and $71,000, respectively. Net income for the period was $61,000, and stock dividends were $11,000. How much were the cash dividends? Requirement a. Beginning and ending Plant Assets, Net, were $99,000 and $96,000, respectively. Depreciation for the period was $9,000, and purchases of new plant assets were $28,000. Plant assets were sold at a gain of $3,000. What were the cash proceeds of the sale? Cash proceeds from the sale were Requirement b. Beginning and ending Retained Earnings are $ and $7 respectively. Net income for the period was $ ), and stock dividends were $ . How much were cash dividends? Cash dividends were $

Requirements Calculate the following items for the statement of cash flows: a. Beginning and ending Plant Assets, Net, were $99,000 and $96,000, respectively. Depreciation for the period was $9,000, and purchases of new plant assets were $28,000. Plant assets were sold at a gain of $3,000. What were the cash proceeds of the sale? b. Beginning and ending Retained Earnings were $35,000 and $71,000, respectively. Net income for the period was $61,000, and stock dividends were $11,000. How much were the cash dividends? Requirement a. Beginning and ending Plant Assets, Net, were $99,000 and $96,000, respectively. Depreciation for the period was $9,000, and purchases of new plant assets were $28,000. Plant assets were sold at a gain of $3,000. What were the cash proceeds of the sale? Cash proceeds from the sale were Requirement b. Beginning and ending Retained Earnings are $ and $7 respectively. Net income for the period was $ ), and stock dividends were $ . How much were cash dividends? Cash dividends were $

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 8MCQ: Which item is added to net income when computing cash flows from operating activities? a. Gain on...

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Which item is added to net income when computing cash flows from operating activities? a. Gain on the disposal of property, plant, and equipment b. Increase in wages payable c. Increase in inventory d. Increase in prepaid rent Use the following information for Multiple-Choice Questions 11-9 and 11-10: Cornett Company reported the following information: cash received from the issuance of common stock, $150,000; cash received from the sale of equipment, $14,800; cash paid to purchase an investment, $20,000; cash paid to retire a note payable, $50,000; and cash collected from sales to customers, $225,000.
Requirements Calculate the following items for the statement of cash flows: a. Beginning and ending Plant Assets, Net, were $106,000 and $101,000, respectively. Depreciation for the period was $18,000, and purchases of new plant assets were $26,000. Plant assets were sold at a gain of $5,000. What were the cash proceeds of the sale? b. Beginning and ending Retained Earnings were $44,000 and $70,000, respectively. Net income for the period was $46,000, and stock dividends were $6,000. How much were the cash dividends? Requirement a. Beginning and ending Plant Assets, Net, were $106,000 and $101,000, respectively. Depreciation for the period was $18,000, and purchases of new plant assets were $26,000. Plant assets were sold at a gain of $5,000. What were the cash proceeds of the sale? Cash proceeds from the sale were
Using the Exhibit below, assume that the depreciation expense on the Income Statement for the year was $38,000. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of depreciation expense on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of assets (XXX) Changes in current operating assets and liabilities:…
Demers Inc. reported the following data:Net income $490,000Depreciation expense 52,000Gain on disposal of equipment 26,500Decrease in accounts receivable 32,400Decrease in accounts payable 12,350Prepare the Cash flows from operating activities section of the statement of cash flows, using the indirect method.
Determine the cash fixed costs which are used when calculating EBDAT: Administrative expenses = $100,000; Rent expenses expenses = $50,000; and Interest expenses = = $70,000; Depreciation $20,000.
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Staley Inc. reported the following data:Net income $280,000Depreciation expense 48,000Loss on disposal of equipment 19,520Increase in accounts receivable 17,280Increase in accounts payable 8,960Prepare the Cash flows from operating activities section of the statement of cash flows, using the indirect method.
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Using the Exhibit below, assume that the amount of Net Income on the Income Statement for the year was $100,000. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of net income on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of assets (XXX) Changes in current operating assets and liabilities:…
On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows: Date Item Debit Credit BalanceDebit BalanceCredit January 1 Balance 1,131,000 March 12 Purchased for cash 385,000 1,516,000 October 4 Sold for $211,000 181,000 1,335,000 Item Section of Statement ofCash Flows Added or Deducted Amount March 12: Purchase of fixed asset $fill in the blank 3 October 4: Sale of fixed asset $fill in the blank 6 Gain on sale of fixed asset (assume the indirect method) $fill in the blank 9