FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on
- 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.
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- 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: Retired $320,000 of bonds, on which there was $3,200 of unamortized discount, for $333,000. Sold 7,000 shares of $20 par common stock for $31 per share. Sold equipment with a book value of $49,800 for $71,700. Purchased land for $300,000 cash. Purchased a building by paying $50,000 cash and issuing a $90,000 mortgage note payable. Sold a new issue of $250,000 of bonds at 97. Purchased 6,400 shares of $25 par common stock as treasury stock at $47 per share. Paid dividends of $2.50 per share. There were 32,000 shares issued and 5,000 shares of treasury stock. Effect Amount a. $ b. $ c. $ d. $ e. $ f. $ g. $ h. $arrow_forwardBad Brad's BBQ had cash flows for the year as follows ($ in millions): Cash received from: Customers $3,100 Interest on investments 220 Sale of land 120 Sale of common stock 510 Issuance of debt securities 2,700 Cash paid for: Interest on debt $ 350 Income taxes 80 Debt principal reduction 1,650 Purchase of equipment 3,200 Purchase of inventory 700 Dividends on common stock 250 Operating expenses 600 Bad Brad's would report net cash inflows (outflows) from financing activities in the amount of:arrow_forwardTom Hanks Company had the following account activity Increase in income taxes payable $100,000 Increase in bonds payable 240,000 Sale of investments 130,000 Issuance of common stock 120,000 Payment of cash dividends 70,000 Purchased treasury stock 25,000 Net cash provided by financing activities is:arrow_forward
- Indicate the effect, if any, that each separate transaction has on financing cash flows. Note: Select "No Effect" if there is no effect. a. Long-term notes payable with a carrying value of $17,600 are retired for $19,900 cash, resulting in a $2,300 loss. b. Paid cash dividends of $13,600 to common stockholders. c. Acquired $22,600 worth of machinery in exchange for common stock. Items a. Long-term notes payable b. Dividends c. Machinery Amount $ $ $ Effect on financing cash flows 19,900 Decrease 13,600 Decrease 22,600 No effectarrow_forwardI'm not sure what I'msupposed to do for this problem or how to go about solving it.arrow_forwardSwifty Corporation's transactions for the year ended December 31, 2021 included the following:• Purchased real estate for $1245000 cash which was borrowed from a bank.• Sold available-for-sale securities for $1080000.• Paid dividends of $1180000.• Issued 550 shares of common stock for $550000.• Purchased machinery and equipment for $250000 cash.• Paid $908000 toward a bank loan.• Reduced accounts receivable by $195000.• Increased accounts payable $396000.Swifty's net cash used in financing activities for 2021 was $843000. $445000. $908000. $293000.arrow_forward
- During the current year, Royal Industries sold treasury stock for $32,000 cash. The treasury stock was purchased last year for $28,000. The company also issued bonds payable for $430,000 cash and declared and paid dividends of $40,000. What amount did Royal report on its statement of cash flows for cash provided by financing activities? O $390,000 O $394,000 O $422,000 O $434,000arrow_forwardThe following summary transactions occurred during the year for Daisy. Cash received from: Collections from customers $386,000 Interest on notes receivable 9,000 Collection of notes receivable 56, 000 Sale of investments 33,000 Issuance of notes payable 106,000 Cash paid for: Purchase of inventory 166, 000 Interest on notes payable 8,000 Purchase of equipment 91,000 Salaries to employees 96,000 Payment of notes payable 28,000 Dividends to shareholders 1,000 Required: Calculate net cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.)arrow_forwardIndicate the effect, if any, that each separate transaction has on financing cash flows. (Select "No Effect" if there is no effect.) a. Long-term notes payable with a carrying value of $15,800 are retired for $17,200 cash, resulting in a $1,400 loss. b. Paid cash dividends of $11,800 to common stockholders. c. Acquired $20,800 worth of machinery in exchange for common stock. Effect on financing Items Amount cash flows a. Long-term notes payable b. Dividends c. Machineryarrow_forward
- Bad Brad's BBQ had cash flows for the year as follows ($ in millions): CASH RECEIVED FROM: Customers $ 2,700 Interest on investments 270 Sale of land 120 Sale of common stock 620 Issuance of debt securities 2,100 CASH PAID FOR: Interest on debt $ 290 Income tax 110 Debt principal reduction 1,500 Purchase of equipment 4,500 Purchase of inventory 1,100 Dividends on common stock 290 Operating expenses 500 Bad Brad's would report net cash inflows (outflows) from financing activities in the amount of: Multiple Choice $380. $1,050. Incorrect $930. $(1,050).arrow_forwardKela Corporation reports net income of $510,000 that includes depreciation expense of $85,000. Also, cash of $46,000 was borrowed on a 3-year note payable. Based on this data, total cash inflows from operating activities are: Multiple Choice O $641,000. $595,000. O $556,000 $425,000arrow_forwarda. Net income was $476,000. b. Issued common stock for $80,000 cash. c. Paid cash dividend of $18,000. d. Paid $100,000 cash to settle a long-term notes payable at its $100,000 maturity value. e. Paid $117,000 cash to acquire its treasury stock. f. Purchased equipment for $93,000 cash. Use the above information to determine cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.) F3 Statement of Cash Flows (partial) Cash flows from financing activities E5 *8 F8 F9 F10 Connec B CAP F11 THE O Parrow_forward
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