FINANCIAL+MANAG.ACCT.
9th Edition
ISBN: 9781260728774
Author: Wild
Publisher: RENT MCG
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Chapter 12, Problem 9E
To determine
Introduction: Transactions and income that affects the investments and fixed assets of the organization are known as investing activities. These activities record the inflow and outflow of cash from the investments.
The
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Use the following information to determine cash flows from investing activities. a. Equipment with a book value of $65,300 and an original cost of $133,000 was sold at a loss of $14,000. b. Paid $89,000 cash for a new truck. c. Sold land costing $154,000 for $198,000 cash, yielding a gain of $44,000. d. Stock investments were sold for $60,800 cash, yielding a gain of $4,150.
Use the following company information to calculate net cash provided or used by investing activities.
(a) Long-term investments were sold for $51,000 cash, yielding a gain of $22,150.
(b) Paid $72,000 cash for new machinery.
(c) Sold land costing $34,000 for $40,000 cash, yielding a $6,000 gain.
(d) Equipment with a book value of $195,000 and an original cost of $320,000 was sold at a loss of $27,000.
Statement of Cash Flows (partial)
Cash flows from investing activities
Equipment with a book value of $82,000 and an original cost of $164,000 was sold at a loss of $33,000. Paid $112,000 cash for a new truck. Sold land costing $320,000 for $415,000 cash, yielding a gain of $95,000. Stock investments were sold for $94,200 cash, yielding a gain of $14,750. Use the above information to determine cash flows from investing activities. Note: Amounts to be deducted should be indicated with a minus sign
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Chapter 12 Solutions
FINANCIAL+MANAG.ACCT.
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- Thompson Company sold a piece of equipment that had an original cost of 22,000 and a carrying value of 10,000 for 13,000 in cash. How would this information be reported on a statement of cash flows prepared using the indirect method?arrow_forwardStatement of Cash Flows The following are Mueller Companys cash flow activities: a. Net income, 68,000 b. Increase in accounts receivable, 4,400 c. Receipt from sale of common stock, 12,300 d. Depreciation expense, 11,300 e. Dividends paid, 24,500 f. Payment for purchase of building, 65,000 g. Bond discount amortization, 2,700 h. Receipt from sale of long-term investments at cost, 10,600 i. Payment for purchase of equipment, 8,000 j. Receipt from sale of preferred stock, 20,000 k. Increase in income taxes payable, 3,500 l. Payment for purchase of land, 9,700 m. Decrease in accounts payable, 2,900 n. Increase in inventories, 10,300 o. Beginning cash balance, 18,000 Required: Prepare Mueller Company's statement of cash flows.arrow_forwardIndicate the effect each separate transaction has on investing cash flows. a. Sold a truck costing $40,000, with $22,000 of accumulated depreciation, for $8,000 cash. The sale results in a $10,000 loss. b. Sold a machine costing $10,000, with $8,000 of accumulated depreciation, for $5,000 cash. The sale results in a $3,000 gain. c. Purchased stock investments for $16,000 cash. The purchaser believes the stock is worth at least $30,000.arrow_forward
- If a gain of $30,000 is incurred in selling (for cash) long-term investments having a book value of $180,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is a. $150,000. b. $180,000. c. $210,000. d. $30,000.arrow_forwardA machine with a cost of $144,000, accumulated depreciation of $92,000, and current year depreciation expense of $20,500 is sold for $45,600 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:arrow_forwardIf a gain of $8,081 is realized in selling (for cash) office equipment having a book value of $62,903, the total amount reported in the cash flows from investing activities section of the statement of cash flows is:arrow_forward
- Equipment with a book value of $78,500 and an original cost of $167,000 was sold at a loss of $34,000. Paid $103,000 cash for a new truck. Sold land costing $320,000 for $410,000 cash, yielding a gain of $90,000. Long-term investments in stock were sold for $95,600 cash, yielding a gain of $16,250. Use the above information to determine cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from investing activitiesarrow_forwardUse 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 activitiesarrow_forwardWhen 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 a decrease in the Investment account of $100,000 which occurred because of the sale of the Investment for cash of $125,000 ( a gain of $25,000)? Group of answer choices Add the $100,000 as Cash received from the sale of investment in the Cash flow from Investing Activities section of the Statement of Cash Flow. Less the $100,000 as Cash paid for the sale of investment in the Cash flow from Investing Activities section of the Statement of Cash Flow. Add the $125,000 as Cash received from the sale of investment in the Cash flow from Investing Activities section of the Statement of Cash Flow. Less the $125,000 as Cash paid for the sale of investment in the Cash flow from Investing Activities section of the Statement of Cash Flow.arrow_forward
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