Lamar Corporation purchased land for $150,000. Later in the year, the company sold land with a book value of $190,000 for $200,000. Show how the effects of these transactions are reported on the statement of cash flows using the indirectmethod.TransactionGain on sale of landCash received for sale of landCash paid for purchase of land$$AmountIncrease or DecreaseStatement of Cash Flows Section

A cash flow statement is a statement that is prepared to analyze the movement of cash during the…

Answered: ansaction of land Amount Increase or…

Business

Accounting

ansaction of land Amount Increase or Decrease Statement of Cash Flows Section

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Cash decreases due to the purchase of equipment would be found in which section of the statement of…

A: Equipment is a fixed asset, which helps in the regular working of the business. it a long term…

Q: Explain how depreciation expense is reported in the Statement of Cash Flows using the indirect…

A: Definition: Statement of cash flows: Statement of cash flow is a financial statement that shows the…

Q: Does gross fixed assets belong to operating, investing, or financing activities on the statement of…

A: Gross Fixed assets belongs to Investing Activities on the statement of cash flows.

Q: Question Content Area Which of the following should be deducted from net income in computing the…

A: The objective of the question is to identify which item should be deducted from net income when…

Q: Cash paid to purchase long-term investments would be reported in a. a separate schedule of…

A: The objective of the question is to identify where the cash paid to purchase long-term investments…

Q: What are the major sources of cash (inflows) in a statement of cash flows? What are the major uses…

Q: Justification for adding depreciation expenditures to net income in the operating activities portion…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: The cash flows from investment activities portion of the statement of cash flows would comprise the…

A: The Answer :

Q: Preparation of Cash flow statement operational section - indirect method

A: In cashflow there are 2 methods for calculating operating cash flow, they are: Direct Method…

Q: Classifying transactions on the statement of cash flows—indirect method Consider the following…

Q: Explain why depreciation expenditure, depletion expense, and amortization expense are added to net…

A: Depreciation is the wear and tear of the asset which is charged to the profit and loss account…

Q: In preparing the operating activities section of the statement of cash flows by the indirect method,…

A: Statement of Cash Flows: A financial statement known as a "statement of cash flows" compiles the…

Q: Give the format of consolidated statement of cash flows.

Q: Accounts Receivable Inventory Accounts Payable Salaries Payable Sales Cost of Goods Sold…

Q: the different tranches of CDOs and the distribution rules of Income and Principa

A: Collateralized Debt Obligations (CDOs) A Collateralized Debt Obligation or CDO is a specialized…

Q: How do successive balance sheets and the income statements determine cash inflows and outflows for a…

A: The information contained in successive balance sheets and income statements is useful for analyzing…

Q: Explain why depreciation, depletion, and amortization cost in the operational activities part of the…

A: The Answer

Q: In an statement of cash flows what is included in the operating activities section? In the…

A: The cash flow statement is an essential part of the financial statements of the organization. It is…

Q: Prepare statment of cash flows using indirect method

A: Statement of cash flows is one of financial statement being prepared in business. It shows all cash…

Q: Why do we exclude depreciation expense and the gain or loss on sale of an asset from the operating…

A: Operating activities are the activities that are related to the ongoing business of an individual or…

Q: What category in the statement of cash flows is used when reporting cash spent on long-lived assets,…

A: Statement of cash flow : It consists of three activities which is operating activity, investing…

Q: Explain why depreciation, depletion, and amortization cost are added to net income in the operating…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: When completing the statement of cash flows using the indirect method, an increase in an asset…

A: Cash flows statement: To know the cash position of the company statement of cash flows are prepared.…

Q: Classify following cash flows as operating, investing, or financing activities. Cash paid for…

A: Statement of cash flows Statement of cash flow is a financial statement that shows the cash and cash…

Q: Why is depreciation an addition in the operating section of the statement of cash flows, when…

A: Statement of cash flows: It is one of the financial statements that shows the cash and cash…

Q: Please tell me what statement or statments the following appears on DEPRECIATION EXPENSE Income…

A: The income statement is drawn to show all the revenues earned and expenses incurred during the…

Q: General ledgeR Casw DATE BALANCE PARTICULARS DEBIT CREDIT DEBIT CREDIT reaUre pank lpan MAntes…

A: Cash Flow Statement: It is a financial statement that summarizes cash inflows and outflows of a…

Q: Cash paid to purchase long-term investments would be reported in the Statement of Cash Flows as:…

A: Definition: Statement of cash flows: This statement reports all the cash transactions which are…

Q: n the statement of cash flows, the operating activities section would include a.cash paid for the p

A: Cash flow can be broken down into three categories: operating cash flow, investing cash flow, and…

Q: Using the direct method of preparing the statement of cash flows, to determine the cash effects of…

A: Statement of cash flows: Statement of cash flows is one among the financial statement of a Company…

Q: Statement of Cash Flows 12/15/2024 November 2024 Nov 24 OPERATING ACTIVITIES Net Income 16,507.99…

A: Highlight the Net cash provided by Operating Activities for the Statement of Cash Flows…

Q: STATEMENT OF PROFIT AND LOSS PT UHUY FOR THE YEAR ENDED 31ST DECEMBER 2019 Sales 1,246,000 Cost of…

A: Statement of cash flowsFor the year December 31, 2019 Cash flow from operating activities:…

Q: Can you give some explanation of why Amortization Expense is included as a source of cash in a cash…

A: In indirect method of cash flow statement we add back amortization expense to net income in…

Q: The purchase of a long-term asset is classified in the statement of cash flows as a(n) a. Operating…

Q: In funds flow statement, funds from operations is [A] application of fund [B] source of cash [C]…

Q: What is the largest item impacting reconciliation of net income to net cash for the most recent…

A: A cash flow statement is one of the three primary financial statements used by companies to provide…

Q: How is valuation of any financial asset related to future cash flows?

A: Valuation of a financial asset=Present value of expected future cash flows

Q: What is the amount and direction (+ or −) of the income taxes payable adjustment to net income in…

A: Cash flow statement indicates inflow and outflow of cash in a business. It categorizes the business…

Question

Lamar Corporation purchased land for $150,000. Later in the year, the company sold land with a book value of $190,000 for $200,000. Show how the effects of these transactions are reported on the statement of cash flows using the indirect
method.
Transaction
Gain on sale of land
Cash received for sale of land
Cash paid for purchase of land
$
$
Amount
Increase or Decrease
Statement of Cash Flows Section

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Answer

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What is the proper order for the different categories of cash flows reported on the statement of cash flows?
The statement of cash flows reports on what major activities?
Classifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. AnswerOperatingInvestingFinancing AnswerAddSubtract 2. Repurchases of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 3. Purchases of property and equipment. AnswerOperatingInvestingFinancing AnswerAddSubtract 4. Sale of investments classified as long-term. AnswerOperatingInvestingFinancing AnswerAddSubtract 5. Proceeds from the issuance of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 6. Increase in prepaid expenses and other current assets. AnswerOperatingInvestingFinancing AnswerAddSubtract 7. Acquisition for cash of a competitor.…
The net income reported on an income statement for the current year was $63,000. Depreciation recorded on fixed assets for the year was $24,000. Balances of the current asset and current liability accounts at the end and beginning of the year are listed below. Prepare the Cash Flows from Operating Activities section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. End Beginning Cash $65,000 $70,000 Accounts receivable (net) 70,000 57,000 Inventories 86,000 102,000 Prepaid expenses 4,000 4,500 Accounts payable (merchandise creditors) 51,000 58,000 Cash dividends payable 4,500 6,500 Salaries payable 6,000 7,500
RECONCILIATION OF NET INCOME TO NET CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities
How is the information reported on the statement of cash flows used for decision-making purposes?
View Policies Current Attempt in Progress Indicate where the purchase of land for cash would appear, if at all, on the indirect statement of cash flows. O Does not represent a cash flow O Financing activities section O Investing activities section O Operating activities section Save for Later Attempts: 0 of 1 used Submit Answer
using the data below make a statement of cash flow using an indirect method