Statement of
Cash flows from investing activities: Cash provided by or used in investing activities is a section of statement of cash flows. It includes the purchase or sale of equipment or land, or marketable securities, which is used for business operations.
Cash flows from investing activities |
Add: Proceeds from sale of fixed assets |
Sale of marketable securities / investments |
Interest received |
Dividend received |
Deduct: Purchase of fixed assets/long-lived assets |
Purchase of marketable securities |
Net cash provided from or used by investing activities |
Cash flows from financing activities: Cash provided by or used in financing activities is a section of statement of cash flows. It includes raising cash from long-term debt or payment of long-term debt, which is used for business operations.
Cash flows from financing activities |
Add: Issuance of common stock |
Proceeds from borrowings |
Proceeds from issuance of debt |
Deduct: Payment of dividend |
Repayment of debt |
Interest paid |
Redemption of debt |
Net cash provided from or used by financing activities |
To Compute: The amount of plant assets acquired by S Corporation during the year.
To Compute: The amount of payment made to notes payable by S Corporation during the year:
Want to see the full answer?
Check out a sample textbook solutionChapter 14 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
- XS Supply Company is developing its annual financial statements at December 31, 2017. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: 2017 2016 Balance Sheet at December 31 Cash $ 37,120 $ 30,800 Accounts Receivable 37,850 30,800 Merchandise Inventory 47,900 40,900 Property and Equipment 175,250 132,000 Less: Accumulated Depreciation (38,250 ) (33,000 ) $ 259,870 $ 201,500 Accounts Payable $ 42,850 $ 32,500 Wages Payable 1,430 2,050 Note Payable, Long−Term 32,700 44,100 Contributed Capital 104,500 80,600 Retained Earnings 78,390 42,250 $ 259,870 $ 201,500 Income Statement for 2017 Sales $ 202,000 Cost of Goods Sold…arrow_forwardCrane Hog Products Corp. provided the following financial information for the quarter ending June 30, 2017: Net income: $ 183,375 Depreciation and amortization: $ 61,786 Increase in receivables: $62,154 Increase in inventory: $ 50,650 Increase in accounts payable: $37,655 Decrease in other current assets: $27,450 What is this firm's cash flow from operating activities during this quarter? (If an amount reduces the cash flow then enter with negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Crane Hog Products Corp.Statement of Cash Flows (Partial) Operating Activities: $ Additions (sources of cash) Subtractions (uses of cash) Net cash operating activities $arrow_forwardThe Sunland Company has disclosed the following financial information in its annual reports for the period ending March 31, 2017: sales of $1.426 million, cost of goods sold of $815,000, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. Compute the cash flows to investors from operating activity. (Round answer to 2 decimal places, e.g. 15.25.) Cash flow from operating activity $arrow_forward
- Wainwright Corporation had the following activities in 2017.1. Sale of land $180,000. 2. Purchase of inventory $845,000. 3. Purchase of treasury stock $72,000. 4. Purchase of equipment $415,000. 5. Issuance of common stock $320,000. 6. Purchase of available-for-sale debt securities $59,000. Compute the amount Wainwright should report as net cash provided (used) by investing activities in its 2017 statement of cash flows.arrow_forwardCarla Vista Hog Products Corp. provided the following financial information for the quarter ending June 30, 2017: Net income: $ 182,725 Depreciation and amortization: $ 68,641 Increase in receivables: $62,154 Increase in inventory: $ 54,827 Increase in accounts payable: $37,655 Decrease in other current assets: $27,450 What is this firm's cash flow from operating activities during this quarter? (If an amount reduces the cash flow then enter with negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Carla Vista Hog Products Corp.Statement of Cash Flows (Partial) (?) Operating Activities: $ Additions (sources of cash) Subtractions (uses of cash) Net cash operating activities $arrow_forwardUsing the given above, compute for the net cash flow generated by/used in a) Operating Activities b) Investing Activities c) Financing Activitiesarrow_forward
- The Crane Company has disclosed the following financial information in its annual reports for the period ending March 31, 2017: sales of $1.473 million, cost of goods sold of $817,000, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. Compute the cash flows to investors from operating activity. (Round answer to 2 decimal places, e.g. 15.25.)arrow_forwardPlease need answer the accounting questionarrow_forwardThe Sandhill Company has disclosed the following financial information in its annual reports for the period ending March 31, 2017: sales of $1.423 million, cost of goods sold of $802,000, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. Compute the cash flows to investors from operating activity. (Round answer to 2 decimal places, e.g. 15.25.) Cash flow from operating activity $enter the Cash flow from operating activity rounded to 2 decimal placesarrow_forward
- Bloom Corporation had the following 2017 income statement. Check the below image for income statements. The following accounts increased during 2017: Accounts Receivable $12,000, Inventory $11,000, and Accounts Payable $13,000.Prepare the cash flows from operating activities section of Bloom’s 2017 statement of cash flows using the direct method.arrow_forwardKendall Corners Inc. recently reported a net income of $3.1 million and depreciation of $527,000. What was its net cash flow? Assume it had no amortization expense. The selected financial data of Wal-mart Company for 2017 is presented below (in millions). Calculate the free cash flow. Income Statement Data for 2017 Net sales $410,000 Cost of goods sold 308,000 Selling and administrative expenses 78,000 Interest expense 2,200 (390) Other income (expense) Income tax expense 7,100 Net income $14,310 Balance Sheet Data (End of the Year) Current assets $48,000 Non-current assets 122,000 Total assets $170,000 Current liabilities 56,000 Long-term debt44,000 Total stockholders' equity 70,000 Total liabilities and stockholders' equity Beginning-of-Year Balances Total assets $162,000 Total stockholders' equity 65,000 Current liabilities 55,000 Total liabilities 97,000 Other Data $170,000 $3,900 26,600 Average net accounts receivable Average inventory 32,900 Net cash provided by operating…arrow_forwardBirtle Corporation reports the following statement of financial position Information for 2017 and 2018. BIRTLE CORPORATION 2017 and 2018 Statement of Financial Position Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets Assets Current liabilities Accounts payable Notes payable 2018 $11,173) 25,760 46,915 $ 75,598 $ 83,848 $ 9,279 23,683 42,636 Prepare the 2018 combined comm ze, mm calculations. Round the final answers to 3 decimal places.) Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total 2017 $272,847 $347,645 Assets $297,967 Total liabilities and owners' equity $381,815 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus. Retained earnings Total liabilities and owners'…arrow_forward
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning