A building with a book value of $41,219 is sold for $57,394 cash. Using the indirect method, choose how this transactionshould be shown on the statement of cash flows.Select the correct answer.an increase of $41,219 from investing activities and an addition to net income of $16,175an increase of $41,219 from investing activitiesan increase of $57,394 from investing activitiesan increase of $57,394 from investing activities and a deduction from net income of $16,1754:06 PM12/20/2019

Cash flow statement: Cash flow statement is a main part of financial statement. It is prepared to…

Answered: A building with a book value of $41,219…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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EXPLORE Name: Time: Instructions: Based on the following data needed for cash flows preparation, 1) indicate whether each item enumerated is an inflow or and an outflow (outflows are enclosed in parenthesis) in operating, investing and financing activity; 2) compute net cash provided by (used in) operating activities. Items O perating Investing Financing 200,000 ExAcquisitio n of Land Initial investment by proprietor -200,000 300,000 300,000 Payment of rental 120,000 2 Cash received from services rende red 50,000 Investment by owner 25,000 4 Payment of utilites expense 65,000 5 Collection from customer's accounts 90,000 6 Proceeds from sale ofequipment Remitance of withholding tax 100,000 2,500 8 W ithdraw al by owner 15,000 9 Purchase ofequipment 5,000 10 Proceeds from a bank loan 100,000 11 Purchase of supplies 25,000 12 Payment of taxes and licenses 13 Remittance of SSS and Philhealth premiums 10,000 and contributions 4,500 14 Payment of accounts to suppliers 28,200 15 Additional…
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D. MATCHING In the following statement of cash flows, each letter represents a specific item which may appear on the statement, using the indirect method. Match the appropriate letter(s) with each transaction listed below. More than one letter may be used for each transaction. 1) 2) 3) 4) 5) 6) 7) 8) 9) Statement of Cash Flows Cash Flows from Operating Activities: Net Income Adjustments to Net Income: Add Deduct Cash Flows from Investing Activities Add Deduct Cash Flows from Financing Activities Add Deduct Significant Non-Cash Transactions Not on the Statement of Cash Flows (A) (B) (D) 30 000€ (H) Sold a short-term, available-for-sale investment at a gain. Temporarily borrowed money by signing a short-term, promissory trade notes payable. Treasury stock was purchased with cash. Declared cash dividends (but did not pay them yet). Purchased land by giving shares of common stock held in treasury. Amortized the premium on bonds payable. Paid off bonds payable before maturity and incurred a…
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.…
Selected information from Peridot Corporation's accounting records and financial statements for 2021 is as follows ($ in millions): Cash paid to acquire machinery Reacquired Peridot common stock Proceeds from sale of land. Gain from the sale of land Investment revenue received Cash paid to acquire office equipment Multiple Choice In its statement of cash flows, Peridot should report net cash outflows from investing activities of: $28 million. $33 59 Prey 92 48 71 87 1 of 10 www. www. Next
How can the owners use the cash flow information or what can the statement of cash flows helps the owners to do?
1. Use the following excerpts from Nutmeg Company’s financial records to determine net cash flows from operating activities and net cash flows from investing activities. Net income this year $83,700 Purchased land this year 20,000 Sold investments this year 31,500 Original cost of investments that were sold 33,000 PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). Net cash flows from operating activities? Net cash flows from investing activities?
Assume a company’s balance sheet showed beginning and ending balances in the Long-Term Investments account of $1,100,000 and $900,000, respectively. The company sold a long-term investment that cost $300,000 and recorded a gain on this sale of $35,000. Based solely on the information provided, the company’s net cash provided by (used in) investing activities would be: Multiple Choice $200,000. $300,000. $235,000. $335,000.
B
How do I figure out how to journalize the cash flow
O On the Statement of Cash Flows a $5,000 gain on the sale of investements would be: Multiple Choice an addition to the Investing section a deduction from the Operating section a deduction from the Investing section an addition to the Financing section
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 activities

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