EXERCISE 13.13 Cash Flows from Investing Activities LO13-4Sorensen Company provides the following information related to its investing and financing activities for the current year.Cash receipts:Sale of common stockSale of equipment (at $34,000 loss)Sale of land (at $50,000 gain)Cash payments:Purchase of equipmentPurchase of treasury stockRetirement of debtDividends on preferred and common stock$250,000156,000160,000$178,00045,00036,50075,000a. Calculate the net amount of cash provided by or used for investing activities for the year.b. What impact, if any, do the following facts have on your calculation? (1) Equipment was sold at a $34,000 loss, and (2) land was sold at a$50,000 gain.c. Briefly explain your decision to exclude any of the items listed if they were not included in your calculation in part a.

Name: EXERCISE 13.13 Cash Flows from Investing Activities LO13-4Sorensen Co
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: EXERCISE 13.13 Cash Flows from Investing Activities LO13-4Sorensen Company provides the following information related to its investing and financing activities for the current year.Cash receipts:Sale of common stockSale of equipment (at $34,000 loss

Investing Activities are those activities which are performed by the Business Entity for the…

Business

Accounting

a. Calculate the net amount of cash provided by or used for investing activities for the year. b. What impact, if any, do the following facts have on your calculation? (1) Equipment was sold at a $34,000 loss, and (2) land was sold at a $50,000 gain. c. Briefly explain your decision to exclude any of the items listed if they were not included in your calculation in part a.

a. Calculate the net amount of cash provided by or used for investing activities for the year. b. What impact, if any, do the following facts have on your calculation? (1) Equipment was sold at a $34,000 loss, and (2) land was sold at a $50,000 gain. c. Briefly explain your decision to exclude any of the items listed if they were not included in your calculation in part a.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1. Why does the company add back depreciation to compute net cash flows from operating activities? 2. Why are there changes in accounts receivable and inventories as adjustments to net earnings. Are accounts receivable and inventories balances increasing or decreasing during the year? 3. It is reported that the company invested $572 million in property, plant, and equipment. Is this an appropriate type of expenditure for the company to make? What relation should expenditures for PPE have with depreciation expense? 4. Stryker paid $300 million to repurchase its common stock in fiscal 2018 and, in addition, paid dividends of $703 million. Thus, it paid $1.003 million of cash to its stockholders during the year. How do we evaluate that use of cash relative to other possible uses for the company's cash? 5. Provide an overall assessment of the company's cash flows for fiscal 2018. In the analysis, consider the sources and uses of cash.
26.A gain on the sale of a plant asset in the ordinary course of business should be presented in a statement of cash flows prepared using the indirect method as an addition to net income Group of answer choices True False
Need help please
Th e sale of a building for cash would be classifi ed as what type of activity on the cash fl ow statement? B . Investing.
Required information E12-13 (Algo) (Supplement B) Computing and Reporting Cash Flow Effects of Sale of Plant and Equipment [The following information applies to the questions displayed below.] During two recent years, Perez Construction, Inc., disposed of the following plant and equipment: Year 1 $ 76,200 Plant and equipment (at cost) Accumulated depreciation on equipment disposed of Cash received Gain (loss) on sale E12-13 Part 1 42,785 20,264 (13, 151) Year 2 $15,900 4,973 14,563 3,636 Required: 1. Determine the cash flow from the sale of property for each year that would be reported in the investing activities section of the cash flow statement. (List cash outflows as negative amounts.)
Please give me answer
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?
Which of the following is not reported as a cash flow from investing activities? A- Selling a long-term investment at a loss for cash B- Sale of depreciable asset for cash C- Purchase of a patent in exchange for cash D- Purchasing land in exchange for common stock
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 (trading
Please help me to solve this problem
During 2023, Bird Company sold a building with a book value of $162.093 for proceeds of $179.332. The company also sold long-term investments for proceeds of $33.521. The company purchased land and a new building for $365,175 by signing a long-term note payable. No other transactions impacted long-term asset accounts during 2023. Instructions Compute net cash flows from investing activities.
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