FINANCIAL ACCOUNTING
9th Edition
ISBN: 9781119620631
Author: Kimmel
Publisher: WILEY
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Chapter 12, Problem 12.1DIE
To determine
Introduction:
Statement of cash flows
Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.
Type of activities reported in statement of cash flows:
Figure (1)
To Classify: Transactions by type of cash flow activity.
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Students have asked these similar questions
Use the following information to calculate the net
cash provided (inflow) or used by (outflow) from
financing activities for the Lulu Corporation:
(a) Net income, $10,000
(b) Sold common stock for $40,000 cash
(c) Paid cash dividend of $13,000
(d) Repayment of bond payable, $26,000
(e) Purchased equ
for $12,000 cash
(f) Issued long term mortgage notes payable for
$250,000 cash.
(Note: in the answer space, write only the
number, with no $ signs or commas. That is, if
your answer is $1,000, white it as : 1000 ).
Answer:
State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows:
a. Retired $290,000 of bonds, on which there was $2,900 of unamortized discount, for $302,000.
b. Sold 12,000 shares of $25 par common stock for $57 per share.
c. Sold equipment with a book value of $49,400 for $71,100.
d. Purchased land for $327,000 cash.
e. Purchased a building by paying $49,000 cash and issuing a $90,000 mortgage note payable.
f. Sold a new issue of $260,000 of bonds at 98.
g. Purchased 4,500 shares of $40 par common stock as treasury stock at $73 per share.
h. Paid dividends of $1.90 per share. There were 20,000 shares issued and 3,000 shares of treasury stock.
Effect
Amount
а.
b.
Cash payment
C.
$4
Cash receipt
d.
е.
f.
$
g.
2$
h.
$4
Assume the following excerpts from a company's balance sheet:
Property, plant, and equipment
Long-term investments
Beginning Balance Ending Balance
$ 3,500,000
$ 1,100,000
$ 3,750,000
$ 950,000
During the year, the company did not purchase any property, plant, and equipment. It sold
equipment that had accumulated depreciation of $150,000 for a loss of $20,000. The
company did not sell any long-term investments during the period. Based solely on the
information provided, the company's net cash provided by (used in) investing activities would
be:
Chapter 12 Solutions
FINANCIAL ACCOUNTING
Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - Prob. 4QCh. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Why is it necessary to use comparative balance...Ch. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - Prob. 10Q
Ch. 12 - Prob. 11QCh. 12 - Prob. 12QCh. 12 - Prob. 13QCh. 12 - Prob. 14QCh. 12 - Prob. 15QCh. 12 - Prob. 17QCh. 12 - Prob. 18QCh. 12 - Prob. 19QCh. 12 - Prob. 20QCh. 12 - Prob. 21QCh. 12 - Prob. 22QCh. 12 - Prob. 12.2BECh. 12 - Prob. 12.3BECh. 12 - Prob. 12.8BECh. 12 - Prob. 12.10BECh. 12 - The management of Uhuru Inc. is trying to decide...Ch. 12 - Prob. 12.13BECh. 12 - Prob. 12.1DIECh. 12 - Prob. 12.11ECh. 12 - Prob. 12.13ECh. 12 - Prob. 12.12APCh. 12 - Prob. 12.2EYCTCh. 12 - Prob. 12.3EYCTCh. 12 - Prob. 12.8EYCTCh. 12 - Prob. 12.9EYCTCh. 12 - Prob. 12.1IECh. 12 - Prob. 12.2IECh. 12 - Prob. 12.3IE
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