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1 2 Which of the following is reported as an investing activity in the statement of cash flows? Multiple Choice 8/8 points awarded . Sale of a subsidiary O Purchase of highly liquid, short-term investments, using excess cash O Issuance of a long-term promissory note Sale of treasury stock
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Question Content Area
On the statement of cash flows, the financing activities section would include all of the following except
a. cash paid for dividends
b. cash received from the sale of bonds payable
c. cash paid for the purchase of treasury stock
d. cash paid for the interest on bonds payable
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Question 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 payable
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Classifying Items in the Statement of Cash Flows
The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement.
(a)
(b)
1. Payments of short-term debt.
Answer
Answer
2. Repurchases of common stock.
Answer
Answer
3. Purchases of property and equipment.
Answer
Answer
4. Sale of investments classified as long-term.
Answer
Answer
5. Proceeds from the issuance of common stock.
Answer
Answer
6. Increase in prepaid expenses and other current assets.
Answer
Answer
7. Acquisition for cash of a competitor.
Answer
Answer
8. Increase in current income tax payable.
Answer
Answer
9. Decrease in accounts payable.
Answer
Answer
10. Dividends paid to stockholders.
Answer
Answer
11.…
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Which statement cash of flows shows the inflows and outflows of the issue and repurchase of stock?
A. Fiancing
B. Operating
C. Investing
D. None of the above
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On the statement of cash flows, the investing activities section would include
a. cash paid for dividends
Ob. cash paid for retirement of bonds payable
Oc. cash received from the issuance of capital stock
Od. cash received from the sale of investments
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LO 1
Classification of Cash Flow Transactions
P1. CONCEPT Analyze each transaction listed in the table that follows and place X's in
the appropriate columns to indicate the transaction's classification and its effect on cash
flows using the indirect method.
Transaction
1. Paid a cash dividend.
2. Decreased accounts receivable.
3. Increased inventory.
4. Incurred a net loss.
5. Declared and issued a stock dividend.
6. Retired long-term debt with cash.
7. Sold available-for-sale securities at a loss.
8. Issued stock for equipment.
9. Decreased prepaid insurance.
10. Purchased treasury stock with cash.
11. Retired a fully depreciated truck (no gain or loss).
12. Increased interest payable.
13. Decreased dividends receivable on investment.
14. Sold treasury stock.
15. Increased income taxes payable.
16. Transferred cash to money market account.
17. Purchased land and building with a mortgage.
Cash Flow Classification
Operating Investing Financing Noncash
Activity Activity Activity…
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14.
Which of the following would be classified as a financing activity on a statement of cash flows?
Sale of a loan receivable
Payment of interest to a creditor
Payment of a bond payable
Declaration and distribution of a stock dividend
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The purchase of stock of another company as an investment would appear on the statement of cash flows as an O a a. outflow of cash in the investing activities section Ob. outflow of cash in the financing activities section O c. outflow of cash in the operating activities section Od. item listed in a separate schedule of noncash investing and financing activities
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Statement of cash flows
P1
Label the following headings, line items, and notes with the numbers 1
through 13 according to their sequential order (from top to bottom) for
presentation on the statement of cash flows.
a. "Cash flows from investing activities" title
b. "For period Ended date" heading
c. "Cash flows from operating activities" title
d. Company name
e. Schedule or note disclosure of noncash investing and
financing transactions
f. "Statement of Cash Flows" heading
g. Net increase (decrease) in cash $
h. Net cash provided (used) by operating activities $
i. Cash (and equivalents) balance at prior period-end $
j. Net cash provided (used) by financing activities $
k. "Cash flows from financing activities" title
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2.
a. In what section of the statement of cash flows would a Gain be reported when the indirect method is used?
Noncash activities note
Investing Activities
Financing Activities
Operating Activitiesb. In what section of the statement of cash flows is the purchase of treasury stock reported?
Investing Activities
Operating Activities
Noncash activities note
Financing Activities
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Cash Flow Effects of Equity and Debt Financing. Identify where the cash flow effect of each of the following transactions is reported in the statement of cash flows: operating, investing, or financing section. State the direction of each change. State None if there is no cash flow effect.
a. Issuance of stock for cash
b. Issuance of stock for land
c. Acquisition of treasury stock
d. Reissuance of treasury stock
e. Declaration of a cash dividend
f. Payment of a cash dividend previously declared
g. Declaration and issuance of a large stock dividend
h. Declaration and issuance of a small stock di
i. Granting of stock options
j. Exercise of stock options
k. Granting of RSU
l. Issuance of long-term notes payable
m. Issuance of convertible bonds
n. Conversion of convertible bonds to common stock
o. Payment of interest on bonds
p. Retirement of bonds at book value
q. Retirement of bonds at a gain
r. Retirement of bonds at a loss
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Please help me with all answers thanku
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Classifying Items in the Statement of Cash Flows
The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement.
(a)
(b)
1. Payments of short-term debt.
AnswerOperatingInvestingFinancing
AnswerAddSubtract
2. Repurchases of common stock.
AnswerOperatingInvestingFinancing
AnswerAddSubtract
3. Purchases of property and equipment.
AnswerOperatingInvestingFinancing
AnswerAddSubtract
4. Sale of investments classified as long-term.
AnswerOperatingInvestingFinancing
AnswerAddSubtract
5. Proceeds from the issuance of common stock.
AnswerOperatingInvestingFinancing
AnswerAddSubtract
6. Increase in prepaid expenses and other current assets.
AnswerOperatingInvestingFinancing
AnswerAddSubtract
7. Acquisition for cash of a competitor.…
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Which of these cash flows would be classified under cash flows from financing activities?
i) Cash received from sale of goodsii) Cash paid for repayment of loaniii) Cash paid for dividendsiv) Cash paid for purchase of landv) Cash received from issue of shares
i, ii, and iii
ii, iv and iii
ii, iii and v
i, iv and v
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Related Questions
- Question Content Area On the statement of cash flows, the financing activities section would include all of the following except a. cash paid for dividends b. cash received from the sale of bonds payable c. cash paid for the purchase of treasury stock d. cash paid for the interest on bonds payablearrow_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_forwardClassifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. Answer Answer 2. Repurchases of common stock. Answer Answer 3. Purchases of property and equipment. Answer Answer 4. Sale of investments classified as long-term. Answer Answer 5. Proceeds from the issuance of common stock. Answer Answer 6. Increase in prepaid expenses and other current assets. Answer Answer 7. Acquisition for cash of a competitor. Answer Answer 8. Increase in current income tax payable. Answer Answer 9. Decrease in accounts payable. Answer Answer 10. Dividends paid to stockholders. Answer Answer 11.…arrow_forward
- Which statement cash of flows shows the inflows and outflows of the issue and repurchase of stock? A. Fiancing B. Operating C. Investing D. None of the abovearrow_forwardOn the statement of cash flows, the investing activities section would include a. cash paid for dividends Ob. cash paid for retirement of bonds payable Oc. cash received from the issuance of capital stock Od. cash received from the sale of investmentsarrow_forwardLO 1 Classification of Cash Flow Transactions P1. CONCEPT Analyze each transaction listed in the table that follows and place X's in the appropriate columns to indicate the transaction's classification and its effect on cash flows using the indirect method. Transaction 1. Paid a cash dividend. 2. Decreased accounts receivable. 3. Increased inventory. 4. Incurred a net loss. 5. Declared and issued a stock dividend. 6. Retired long-term debt with cash. 7. Sold available-for-sale securities at a loss. 8. Issued stock for equipment. 9. Decreased prepaid insurance. 10. Purchased treasury stock with cash. 11. Retired a fully depreciated truck (no gain or loss). 12. Increased interest payable. 13. Decreased dividends receivable on investment. 14. Sold treasury stock. 15. Increased income taxes payable. 16. Transferred cash to money market account. 17. Purchased land and building with a mortgage. Cash Flow Classification Operating Investing Financing Noncash Activity Activity Activity…arrow_forward
- 14. Which of the following would be classified as a financing activity on a statement of cash flows? Sale of a loan receivable Payment of interest to a creditor Payment of a bond payable Declaration and distribution of a stock dividendarrow_forwardThe purchase of stock of another company as an investment would appear on the statement of cash flows as an O a a. outflow of cash in the investing activities section Ob. outflow of cash in the financing activities section O c. outflow of cash in the operating activities section Od. item listed in a separate schedule of noncash investing and financing activitiesarrow_forwardStatement of cash flows P1 Label the following headings, line items, and notes with the numbers 1 through 13 according to their sequential order (from top to bottom) for presentation on the statement of cash flows. a. "Cash flows from investing activities" title b. "For period Ended date" heading c. "Cash flows from operating activities" title d. Company name e. Schedule or note disclosure of noncash investing and financing transactions f. "Statement of Cash Flows" heading g. Net increase (decrease) in cash $ h. Net cash provided (used) by operating activities $ i. Cash (and equivalents) balance at prior period-end $ j. Net cash provided (used) by financing activities $ k. "Cash flows from financing activities" titlearrow_forward
- 2. a. In what section of the statement of cash flows would a Gain be reported when the indirect method is used? Noncash activities note Investing Activities Financing Activities Operating Activitiesb. In what section of the statement of cash flows is the purchase of treasury stock reported? Investing Activities Operating Activities Noncash activities note Financing Activitiesarrow_forwardCash Flow Effects of Equity and Debt Financing. Identify where the cash flow effect of each of the following transactions is reported in the statement of cash flows: operating, investing, or financing section. State the direction of each change. State None if there is no cash flow effect. a. Issuance of stock for cash b. Issuance of stock for land c. Acquisition of treasury stock d. Reissuance of treasury stock e. Declaration of a cash dividend f. Payment of a cash dividend previously declared g. Declaration and issuance of a large stock dividend h. Declaration and issuance of a small stock di i. Granting of stock options j. Exercise of stock options k. Granting of RSU l. Issuance of long-term notes payable m. Issuance of convertible bonds n. Conversion of convertible bonds to common stock o. Payment of interest on bonds p. Retirement of bonds at book value q. Retirement of bonds at a gain r. Retirement of bonds at a lossarrow_forwardPlease help me with all answers thankuarrow_forward
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