HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
7th Edition
ISBN: 9780136505273
Author: MILLER-NOBLES
Publisher: PEARSON
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Textbook Question
Chapter 14, Problem 7QC
Mountain Water Corp. issued common stock of $28,000 to pay off long-term notes payable of $28,000. In what section(s) would these transactions be recorded?
a. Financing activities payment of note, $(28,000)
b. Financing activities cash receipt, $28,000
c. Non-cash investing and financing activities, $28, 000
d. Both a and b are correct.
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The following accounts and corresponding balances were drawn from Dexter Company's Year 2 and Year 1 year-end balance sheets.
Account Title
Bonds payable
Common stock
Year 1
$301,600
282,500
Year 2
$212,700
371,800
Other information drawn from the accounting records:
1. Dividends paid during the period amounted to $31,700.
2. There were no bond liabilities issued during the period.
Required
a. Compute the amount of cash flow associated with the repayment of bond liabilities.
b. Compute the amount of cash flow associated with the issue of common stock.
c. Prepare the financing activities section of the statement of cash flows.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Compute the amount of cash flow associated with the repayment of bond liabilities.
Cash flow for the repayment of bond liabilities
XYZ provided the following financial information:
XYZBalance SheetAs of 12/31/19
Assets:
Liabilities and Equity:
Cash and marketable securities
$27,476
Accounts payable and accruals
$154,860
Accounts receivable
$143,519
Short-term notes payable
$21,255
Inventory
$212,379
Total current liabilities
$176,115
Total current assets
$383,374
Long term debt
$155,510
Net plant and equipment
$602,704
Total liabilities
$331,625
Goodwill and other assets
$42,422
Common stock
$312,719
Retained earnings
$384,156
Total assets
$1,028,500
Total liabilities and equity
$1,028,500
In addition, it was reported that the firm had a net income of:
$158,402
and net sales of:
$4,272,431
Calculate the following ratios for this firm (Use 365 days for calculation. Round answers to 2 decimal places, e.g. 52.75.):
Current Ratio
?
times…
The following accounts and corresponding balances were drawn from Dexter Company’s Year 2 and Year 1 year-end balance sheets.
Account Title
Year 2
Year 1
Bonds payable
$212,100
$300,800
Common stock
373,200
275,300
Other information drawn from the accounting records:
Dividends paid during the period amounted to $42,100.
There were no bond liabilities issued during the period.
Requireda. Compute the amount of cash flow associated with the repayment of bond liabilities.b. Compute the amount of cash flow associated with the issue of common stock.c. Prepare the financing activities section of the statement of cash flows.
Chapter 14 Solutions
HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
Ch. 14 - The purposes of the statement of cash flows are to...Ch. 14 - The main categories of cash flow activities are a....Ch. 14 - Operating activities are most closely related to...Ch. 14 - Which item does not appear on a statement of cash...Ch. 14 - Leather Shop earned net income of 57,000 after...Ch. 14 - The Plant Assets account and Accumulated...Ch. 14 - Mountain Water Corp. issued common stock of 28,000...Ch. 14 - Prob. 8QCCh. 14 - Prob. 9AQCCh. 14 - If accrued liabilities increased during the year,...
Ch. 14 - Prob. 1RQCh. 14 - How does the statement of cash flows help users of...Ch. 14 - Describe the three basic types of cash flow...Ch. 14 - What types of transactions are reported in the...Ch. 14 - Prob. 5RQCh. 14 - Prob. 6RQCh. 14 - Explain why depreciation expense, depletion...Ch. 14 - Prob. 8RQCh. 14 - If current assets other than cash increase, what...Ch. 14 - If current liabilities increase, what is the...Ch. 14 - Prob. 11RQCh. 14 - Prob. 12RQCh. 14 - Prob. 13RQCh. 14 - Prob. 14RQCh. 14 - Prob. 15ARQCh. 14 - Prob. 16BRQCh. 14 - Describing the purposes of the statement of cash...Ch. 14 - Prob. 14.2SECh. 14 - Classifying items on the indirect statement of...Ch. 14 - Classifying cash flow items Consider the following...Ch. 14 - Prob. 14.17ECh. 14 - Prob. 14.18E
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