24 For a recent year a corporation's financial statements reported the following: Based on the following information, what amount will the corporation report as Net Cash Provided (Used) by Operating Activities on the statement of cash flows? Net Income $ 100,000 Depreciation $ 10,000 Increase in accounts receivable Decrease in accounts payable $ 30,000 $15,000 A) B) C) Net cash provided by operating activities Net cash provided by operating activities Net cash provided by operating activities Net cash provided by operating activities E) None of the above D) 25 The acquisition of land by issuing common stock is omm A) a noncash transaction which is not reported in the body of a statement of cash flows. B) a cash transaction and would be reported in the body of a statement of cash flows. C) a noncash transaction and would be reported in the body of a statement of cash flows. D) only reported if the statement of cash flows is prepared using the direct method. E) none of the above qnibns 26 The board of directors of Irondale Corporation declared a cash dividend of $2.50 per share on 57,000 shares of common stock on June 14, 2022. The dividend is to be paid on July 15, 2022, to onib shareholders of record on July 1, 2022. The proper entry to be recorded on July 15, 2022 is, no e10s bris A) Cash $or 142,500 Dividends Payable B) Dividends Payable $.000 142,500 Cash C) Cash Dividends D) Dividends Cash E) None of the above me $ $ $ $ 130,000 65,000 85,000 155,000 $ .000,02 bos $ ovods a $ 142,500 $ $00 142,500 $ 142,500 142,500 142,500 142,500
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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