A building with a book value of $46,349 is sold for $61,396 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as anincrease ofa. $46,349 in the investing activities section and an addition of $15,047 to net income in the operating activities sectionb. $61,396 in the investing activities section and a deduction of $15,047 from net income in the operating activities sectionc. $46,349 in the investing activities sectiond. $61,396 in the investing activities section

The indirect method for the preparation of the statement of cash flows involves the adjustment of…

Answered: A building with a book value of $46,349…

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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Using indirect method, compute for the following: 1. net cash flow from operating activities 2. net cash flow from investing activities 3. net cash flow from financing activities
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Required information Use the following information for the Quick Studies below. (Algo) [The following information applies to the questions displayed below.] Cash Accounts receivable. Equipment, net Land Total assets Cash Accounts receivable Equipment, net Current Year $ 12,200 63,000 62,000 100,500 $ 237,700 Express the items in common-size percents. (Round your percentage answers to one decimal place.) Land Total assets Current Year Prior Year $ 15,400 28,700 54,400 75,000 $ 173,500 % % % % 0.0 % Prior Year % % % % 100.0 %
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A building with a book value of $41,219 is sold for $57,394 cash. Using the indirect method, choose how this transaction should 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 $16,175 an increase of $41,219 from investing activities an increase of $57,394 from investing activities an increase of $57,394 from investing activities and a deduction from net income of $16,175 4:06 PM 12/20/2019
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?
Jefferson Services Company records the collection of $500 cash for previously accrued revenues and then makes an accrual of $325 for another revenue. The impact of these two entries on total net income and working capital is an increase of: Select one: O a. Net Income $325, Working Capital $175 O b. Net Income $825, Working Capital $325 Oc Net Income $325, Working Capital $500 Od. Net Income $325, Working Capital $325 Oe. Net Income $s00, Working Capital $175
Below 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…
Using the Exhibit below, assume that the balance of Accounts Payable was $60,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Payable is $65,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts payable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of…
How do I figure out how to journalize the cash flow
1. A company uses the indirect method to determine its cash flows from operating activities. Use the following information to determine its net cash provided or used by operating activities: Net income S15,200 Depreciation expense S10,000 Cash payment on note payable $8,000 Gain on sale of land $3,000 Increase in inventory S1,500 Increase in accounts payable $2,850

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