4. A company acquires a $3m plot of land in order to build a warehouse. They pay cash for the land. How would this be handled on the statement of cash flows.
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- Land costing $40,631 was sold for $79,720 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?Match the cash flow effect with the correct transaction or event. Assume the indirect method is used. Column A 1. Purchased land for cash: Purchased land for cash 2. Issued a twenty year mortgage note for cash: Issued a twenty year mortgage note for cash 3. Increase in the inventory balance: Increase in the inventory balance 4. Resold treasury stock for cash: Resold treasury stock for cash 5. Declared cash dividends: Declared cash dividends 6. Recorded depreciation expenses for the year: Recorded depreciation expenses for the year 7. Issued long-term bonds: Issued long-term bonds 8. Repaid principal on a note payable: Repaid principal on a note payable 9. Paid cash dividends: Paid cash dividends 10. Issued common stock for land: Issued common stock for land Column B a. Not reported on the Statement of Cash Flows b. Inflow from Operating Activities c.…Shown below are totals of the three sections from the SCF for the Sivad Motel for the year just ended. Analyze this information and prepare a report indicating your opinion regarding its sources and uses of cash and their impact on the future of the company. Your conclusions and recommendations should be supported with proper explanations and assumptions. Statement of Cash Flows Net cash provided by operating activities $10,000 Net cash used by investing activities (15,000) Net cash used by financing activities (5,000) Decrease in cash for the year (10,000) Cash at beginning of year 15,000 Cash at end of…
- In a statement of cash flows, indicate which of the following does NOT correspond to investment activities: Select one: a. Purchase of property, plant and equipment assets. b. Loan granted to company officials. c. Compensation received from the insurer for warehouse destroyed by fire. d. Sale of investments to negotiate (tradingBelow is a list of independent transactions. For each transaction, identify which section of the statement of cash flows it is to be reported and indicate if it is a cash in-flow (a positive number) or cash out-flow (negative number). (Hint: recall the use of the accounting equation A=L+E to help determine if an amount is a positive or negative number.) Description Section Amount Issue of bonds payable of $500 cash Sale of land and building of $60,000 cash Retirement of bonds payable of $20,000 cash Current portion of long-term debt changed from $56,000 to $50,000 Repurchase of company's own shares of $120,000 cash Issuance of common shares of $80,000 cash Payment of cash dividend of $25,000 recorded to retained earnings Purchase of land of $60,000 cash and a $100,000 note Cash dividends received from a trading investment of $5,000 Interest income received in cash from an investment of…Review the statement of cash flows for Tesla Motors Inc. in ATC 14-1 on page 688. Discuss the cash position of the company by considering the following: Review the statement of cash flows for Tesla Motors Inc. in ATC 14-1 on page 688. Discuss the cash position of the company by considering the following: How can you explain the difference between cash flow from operating activities and the net loss for this company?
- Clint M. Invests $30,000 into Merle Company. The Effect to Assets would be: Clint M. Invests $30,000 into Merle Company. The effect to Liabilities would be: Clint M. invests $30,000 into Merle Company. The effect to Equity would be: Merle Company purchased a piece of equipment for $5,000 on account. The effect to Assets would be: Merle Company purchases a piece of equipment for $5,000 on account. The effect to Liabilities would be: Merle Company Purchases a piece of equipment for $5,000 on account. The effect to Equity would be: Merle Company pays $1,000 for this month’s rent in cash. The effect to Assets would be:ACTIVITY 1. MODIFIED MATCHING TYPE: From the line items in a box, prepare a pro-forma statement of cash flows. Classify the line items as to operating, investing, financing activities. Cash received from customers Salaries paid Interest paid Utilities paid Cash drawings of owners Payment for acquisition of equipment Cash contributions from owners Depreciation Payments to supplier Amortization Principal payments for bank Cash received from sale of land42. What is the net cash provided by operating activities? a. P90,000 b. P108,000 c. P153,000 d. P75,000 43. Using the data in no. 42, what is the net cash provided (used) by investing activities? a. (P108,000) b. P18,000 c. P90,000 d. (P132,000) 44. Using the data in no. 42, what is the net cash provided (used) by financing activities? a. P18,000 b. P72,000 c. (P90,000) d. (P162,000)
- A building with a book value of $36,213 is sold for $60,055 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as an increase of a.$36,213 from investing activities b.$60,055 from investing activities and a deduction from net income of $23,842 c.$36,213 from investing activities and an addition to net income of $23,842 d.$60,055 from investing activities26.Land costing $96,832 was sold for $69,017 cash. The loss on the sale was reported on the income statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?Indicate whether each of the following activities would be reported on the statement of cash flows as (a) an operating activity, (b) an investing activity, or (c) a financing activity:1. Cash received from fees earned.2. Cash paid for expenses.3. Cash paid for land.4. Cash paid to owner for personal use.
