Using the indirect method to prepare the statement of cash flows, Smith Company sold equipment for $41,900cash, sold land for $8,600 cash, and purchased another piece of equipment for $30,500. The net cash flowsprovided by /used for investing activities isA. $20,000OB. $(20,000)OC. $(11,400)OD. $11,400

Sale of EquipmentCash received = 41,900 Sale of LandCash received = 8,600 Purchase of EquipmentCash…

Answered: Using the indirect method to prepare…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Use the following excerpts from Nutmeg Company's financial records to determine net cash flows from operating activities and net cash flows from investing activities. Net income this year Purchased land this year Sold investments this year Original cost of investments that were sold $83,700 20,000 31,500 33,000 PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). Net cash flows from operating activities Net cash flows from investing activities
Complete the following Spreadsheet for the preparation of statement of cash flows under the indirect method. (The statement of cash flows is not required.) (Enter all amounts as positive values.) Additional information: a. Net income for the year was $105,000. b. Dividends of $90,000 cash were declared and paid. c. The only noncash expense was $75,000 of depreciation. d. Purchased plant assets for $95,000 cash. e. Notes payable of $25,000 were issued for $25,000 cash. f. $55,000 increase in accounts receivable. g. $35,000 decrease in inventory. h. $15,000 decrease in accounts payable. Balance Sheet-Debit Balance Accounts Cash Accounts receivable Inventory Plant assets Balance Sheet-Credit Balance Accounts Accumulated depreciation Accounts payable Notes payable Common stock Retained earnings Statement of Cash Flows Operating activities SCORETECK CORPORATION Spreadsheet for Statement of Cash Flows-Indirect Method For Year Ended December 31, 2021 Investing activities Financing activities…
If a loss of $31,000 is incurred in selling (for cash) office equipment having a book value of $100,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is: A. $31,000 B. $100,000 C. $131,000 D. $69,000
Based on the following information, compute cash flows from financing activities under GAAP.Purchase of investments $ 250Dividends paid 1,200Interest paid 400Additional borrowing from bank 2,800
1. Use the following excerpts from Nutmeg Company’s financial records to determine net cash flows from operating activities and net cash flows from investing activities. Net income this year $83,700 Purchased land this year 20,000 Sold investments this year 31,500 Original cost of investments that were sold 33,000 PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). Net cash flows from operating activities? Net cash flows from investing activities?
If a gain of $8,520 is realized in selling (for cash) office equipment having a book value of $52,917, the total amount reported in the Cash flows from investing activities section of the statement of cash flows is a.$52,917 b.$44,397 c.$61,437 d.$8,520
Prepare the statement of operating activities section of the statement of cash flows for richcorp using the indirect method
1. A company uses the indirect method to determine its cash flows from operating activities. Use the following information to determine its net cash provided or used by operating activities: Net income S15,200 Depreciation expense S10,000 Cash payment on note payable $8,000 Gain on sale of land $3,000 Increase in inventory S1,500 Increase in accounts payable $2,850

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