College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Question
Chapter 23, Problem 1SEB
To determine
Identify the given transactions as operating, investing, or financing activity and indicate whether the given activity is a
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Quinze Seize Corp. reported the following amounts in its statement of financial position at each year-end:a. What is the net cash provided by operating activities?b. What is the net cash used in investing activities?c. What is the net cash provided by financing activities?
IDENTIFICATION OF OPERATING, INVESTING, AND FINANCING ACTIVI-
TIES The following activities took place in the Tomberlin Company during the
most recent year. Indicate whether each activity is a cash inflow (+) or cash out-
flow (-), and whether it is an operating activity (O), investing activity (I), or
financing activity (F).
a. Payments to acquire productive assets
b. Proceeds from the issuance of stock
c. Interest received on loans made to outside entities
d. Proceeds from the sale of productive assets
e. Dividends received on investments made in the stock of other corporations
f. Payments to other suppliers and for other experises
8. Payments of dividends to stockholders
h. Payments to acquire investments in debt securities
i.
Payments for interest on loans
j.
Cash receipts from the sale of services
k. Repayment of the principal on loans
1. Payments for the acquisition of inventory
Entities are required to issue general purpose financial statements at least
a. Once a month
b. Once a year
c. Twice a year
d. Once a quarter
This statement shows the entity's assets, liabilities, and equity of a particular date
a. Statement of profit or loss and other comprehensive income
b. Statement of financial position
c. Statement of cash flows
d. Notes to financial statements
In the Statement of cash flows, the most important source of cash that serves as barometer about the health
of business cash flows, come from
a. Cash flows from investing activities
b.
Cash flows from operating activities
c. Cash flows from investing activities
d. Cash flows from borrowing activities
Chapter 23 Solutions
College Accounting, Chapters 1-27
Ch. 23 - True/False The purpose of the statement of cash...Ch. 23 - Investing activities are those transactions...Ch. 23 - An increase in accounts receivable is deducted...Ch. 23 - Prob. 4TFCh. 23 - Prob. 5TFCh. 23 - Prob. 1MCCh. 23 - Prob. 2MCCh. 23 - Prob. 3MCCh. 23 - Prob. 4MCCh. 23 - Prob. 5MC
Ch. 23 - Prob. 1CECh. 23 - Prob. 2CECh. 23 - Prob. 3CECh. 23 - Prob. 4CECh. 23 - Prob. 5CECh. 23 - Prob. 6CECh. 23 - Prob. 7CECh. 23 - Prob. 8CECh. 23 - Prob. 1RQCh. 23 - Prob. 2RQCh. 23 - Prob. 3RQCh. 23 - Prob. 4RQCh. 23 - Prob. 5RQCh. 23 - Prob. 6RQCh. 23 - Prob. 7RQCh. 23 - Prob. 8RQCh. 23 - Prob. 9RQCh. 23 - Prob. 10RQCh. 23 - Prob. 11RQCh. 23 - Prob. 12RQCh. 23 - Prob. 13RQCh. 23 - Prob. 14RQCh. 23 - Prob. 15RQCh. 23 - Prob. 16RQCh. 23 - Prob. 17RQCh. 23 - Prob. 18RQCh. 23 - Prob. 19RQCh. 23 - Prob. 20RQCh. 23 - Prob. 21RQCh. 23 - SERIES A EXERCISES IDENTIFICATION OF OPERATING,...Ch. 23 - CHANGE IN CASH AND CASH EQUIVALENTS Olsen Companys...Ch. 23 - Prob. 3SEACh. 23 - Prob. 4SEACh. 23 - GAINS AND LOSSES ON THE SALE OF LONG-TERM ASSETS...Ch. 23 - Prob. 6SEACh. 23 - Prob. 7SEACh. 23 - CASH PAID FOR INTEREST Ball Companys income...Ch. 23 - Prob. 9SPACh. 23 - Prob. 10SPACh. 23 - COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Horn...Ch. 23 - EXPANDED STATE MENT OF CASH FLOWS Financial...Ch. 23 - Prob. 1SEBCh. 23 - Prob. 2SEBCh. 23 - Prob. 3SEBCh. 23 - Prob. 4SEBCh. 23 - Prob. 5SEBCh. 23 - Prob. 6SEBCh. 23 - Prob. 7SEBCh. 23 - Prob. 8SEBCh. 23 - Prob. 9SPBCh. 23 - Prob. 10SPBCh. 23 - COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES...Ch. 23 - EXPANDED STATEMENT OF CASH FLOWS Financial...Ch. 23 - MANAGING YOUR WRITING Direct Method A friend of...Ch. 23 - MASTERY PROBLEM Financial statements for...Ch. 23 - CHALLENGE PROBLEM The long-term liabilities...
Knowledge Booster
Similar questions
- Base on your review of the Mc Donald’s Corporation financial statement, draw at least 4 conclusions in terms of usage of its cash flow, financing, firm’s investment, the primary use of the firms’ cash flow during the year.arrow_forwardSeamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year: Journalize the entries for these transactions.arrow_forwardThe financial statements for Romeo and Company follow. Assume that the additional investment and the withdrawals were in the form of cash. Required Prepare a statement of cash flows for the year ended December 31, 2018. Check Figure Net cash flows from operating activities, 172,000arrow_forward
- Cash Tangible Assets Notes Payable Сapital Prepaid Expenses Inventories Long term Investments Income Current Liabilities Expense 1. It is a medium of exchange on business transactions. 2. These are the bills paid in advance. 3. These are the assets / resources that are held for resale. 4. These are the investments of the firm made for long term purposes. 5. These are obligations that reach their due dates for payments within one year after the year-end date. 6. Examples of this are cash, supplies and furniture and fixtures. 7. Debts that are supported with written notes or promises. 8. These are worth of cash and other assets invested in the business. 9. It is the increase in resources resulting from the performance of service or selling of goods. 10.lt is the decrease in resources resulting from the operations of the business.arrow_forwardStatement of financial position balances as at 31 December 20X8 and 20X9 are provided below for Laurel Inc. As at 31 December Assets Cash Short-term investments Accounts receivable Inventories Long-term investments Equipment Accumulated depreciation . Patent, net Total assets Liabilities and Shareholders' Equity Accounts payable Short-term bank debt Common shares Retained earnings Total liabilities and shareholders' equity $ Operating activities: 20X9 Laurel Inc. Statement of Cash Flows For the year ended 31 December 20X9 258,500 333,500 547,000 723,500 208,500 1,717,000 (467,000) 93,500 20X8 103,000 533,500 643,500 317,000 1,017,000 (458,500) 117,000 $ 3,414,500 $ 2,272,500 $ 823,500 $ 357,000 Laurel Inc. additional information: .Net earnings for 20x9 were $720,500. Equipment with an original cost of $417,000 and a NBV of $158,500 was sold for $158,500 during the year. Long-term investments were sold for $143,500 during the year. . • Short-term investments acquired are treasury bills…arrow_forwardClassification of Cash Flows: For each of the following items, indicate whether the cash flow relates to an operating activity, an investing activity, or a financing activity. Cash receipts from customers for services rendered Sale of long-term investments for cash Acquisition of PPE for cash Payment of income taxes Bonds payable issued for cash Payment of cash dividends declared in previous year Purchase of short-term investments (not cash equivalents) for casharrow_forward
- Under which heading on the statement of cash flows is profit for the year considered a cash inflow? Question 3 options: cash activities investing activities financing activities operating activitiesarrow_forwardHunter Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Prior Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment $ 44,100 18,000 21,000 100,000 (33,000) $ 150,100 $ 19,000 900 25,000 75,000 30,200 $ 150,100 $ 13,000 19,000 26,000 92,000 (25,000) $ 125,000 $ 17,000 1,000 38,000 50,000 19,000 $ 125,000 Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement (current year) Sales Revenue Cost of Goods Sold Other Expenses $ 120,000 71,000 35,000 $ 14,000 Net Income Additional Data: a. Bought equipment for cash, $8,000. b. Paid $13,000 on the long-term notes payable. c. Issued new shares of stock for $25,000 cash. d. Declared and paid a…arrow_forwardThe following select information for Sarasota Inc. has been provided for the year ended December 31, 2023: Net Cash provided from Operating Activities Investing Activities: Sale of Long-term investments Purchase of PPE Net Cash Used by Investing Activities Financing Activities: Repayment of Loan Payable Issue of Common Shares Payment of dividends Net Cash Provided by Financing Activities Current Assets Non-Current Assets (net) Current Liabilities Non-Current Liabilities 2023 0.47 O 0.76 O 0.29 $676400 1252600 487300 765700 75900 155000 (26400) 61600 (18600) 2022 $664900 1119100 453700 700850 What is Sarasota's Current Cash Debt Coverage Ratio in 2023? $341000 79100 16600arrow_forward
- Exercises: 1. Indicate under which activity (operating, financing, investing) the following accounts belong in the statement of cash flows: Activity Land Mortgage payable Profit for the year Trade and other payables Depreciation/amortization Inventories Prepaid expenses Buildings Accrued expenses Current taxes payable Equipment Long-term borTowings Purchase of a company Dividendsarrow_forwardCash Flows from Investing and Financing Activities Determine the amount of cash received and paid for financing and investing activities and the cash flows as they would appear on Rogerson’s statement of cash flows for the year ended December 31, 20-2. Use a minus to indicate any decreases in cash or cash outflows. Rogerson Company’s comparative balance sheet as of December 31, 20-2 and 20-1, showed the following with regard to investing and financing activities: 20-2 20-1 Building $125,200 $0 Equipment 92,000 0 Notes payable 27,200 19,400 Common stock at par 285,600 233,900 Paid-in capital in excess of par 81,900 48,500 Retained earnings 267,000 213,500 Net income for 20-2 was $85,300, and cash dividends of $31,800 were declared and paid. Rogerson did not sell any buildings or equipment and did not retire any debt. Determine the amount of cash received and paid for financing and investing activities and…arrow_forwardQuestion Content Area On the statement of cash flows, the operating activities section would include a.cash paid for the purchase of investments b.cash received from the issuance of common stock c.cash paid for cash dividends d.cash paid for interest on short-term notes payablearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub