Digman Co. had retained earnings of $400,000 and $50,000 in cash on January 1st. It made a net income of $300,000 in the year. The amortization expense was $250,000. Digman Co. issued additional common shares for $500,000 and borrowed $600,000 from the Bank of Toyland. Cash from financing activities was: Select one: $1,100,000 none of the above $ 600,000 $ 900,000

Digman Co. had retained earnings of $400,000 and $50,000 in cash on January 1st. It made a net income of $300,000 in the year. The amortization expense was $250,000. Digman Co. issued additional common shares for $500,000 and borrowed $600,000 from the Bank of Toyland. Cash from financing activities was: Select one: $1,100,000 none of the above $ 600,000 $ 900,000

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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Janus Company had the following journal entry: Debit Credit Cash $30,000 Common Stock $30,000 From this entry, we can determine that Janus: a Purchased $30,000 of another company’s common stock b Repurchased $30,000 of their own common stock. c Issued $30,000 of their own common stock d urchased $30,000 of Investments.
During 20X5, LAL Corp. had the following cash flows: (1) received cash of $10,000 billed to a customer in 20X5; (2) earned $120,000 of net income; (3) paid interest of $15,000 on a corporate bond issue; (4) paid dividends of $25,000 to its stockholders; (5) borrowed $150,000 from a local bank; and (6) purchased its own shares of common stock for $50,000. What is LAL's net cash flows from financing activities for 20X5? Select one: a. $60,000 b. $75,000 c. $190,000 d. $195,000 e. $70,000
During 20X6, LAL Corp. had the following cash flows: (1) received cash of $10,000 billed to a customer in 20X6; (2) earned $120,000 of net income; (3) paid interest of $15,000 on a corporate bond issue; (4) paid dividends of $30,000 to its stockholders; (5) borrowed $150,000 from a local bank; and (6) purchased its own shares of common stock for $50,000. What is LAL's net cash flows from financing activities for 20X6?
Swifty Corporation's transactions for the year ended December 31, 2021 included the following:• Purchased real estate for $1245000 cash which was borrowed from a bank.• Sold available-for-sale securities for $1080000.• Paid dividends of $1180000.• Issued 550 shares of common stock for $550000.• Purchased machinery and equipment for $250000 cash.• Paid $908000 toward a bank loan.• Reduced accounts receivable by $195000.• Increased accounts payable $396000.Swifty's net cash used in financing activities for 2021 was $843000. $445000. $908000. $293000.
A company issues $1.1 million of new stock and pays $201,000 in cash dividends during the year. In addition, the company took advantage of falling interest rates to borrow $1.51 million in a new bond issue and paid off existing bonds with a face value of $2.05 million. The company bought 501 of another company's $1,010 bonds at a $101,000 premium. The net cash flow provided by financing activities is: A) An outflow of $201,000. B) An inflow of $359,000. C) An inflow of $540,000. D) An outflow of $101,000
During the current year, Royal Industries sold treasury stock for $32,000 cash. The treasury stock was purchased last year for $28,000. The company also issued bonds payable for $430,000 cash and declared and paid dividends of $40,000. What amount did Royal report on its statement of cash flows for cash provided by financing activities? O $390,000 O $394,000 O $422,000 O $434,000
10. The January 31, 2022 Statement of Financial Position of Pink Corporation follows: Cash 800,000 Accounts receivable ( net of P2,000 allowance for bad debts) 3,800,000 Inventory 1,600,000 Property, plant and equipment (net of P6,000,000 accumulated dep'n) 4,000,000 Total assets 10,200,000 Accounts payable 8,250,000 Ordinary shares 5,000,000 Retained earnings (Deficit) (3,050,000) Total Liabilities and Shareholders' equity…
Ace Co. issued 1,000 shares of its $10 par value common stock for $15 per share in cash. How should this transaction be reported in Ace's statement of cash flows for the year of issuance? A. $15,000 cash inflow from financing activities. B. $10,000 cash inflow from financing activities and $5,000 adjustment to arrive at cash flows from operating activities. C. $15,000 cash flow from investing activities. D. $10,000 cash flow from investing activities and $5,000 adjustment to arrive at cash flows from operating activities
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Renaldo Cross Company paid $2,000 interest on short-term notes payable, $10,000 principal of long-term bonds, and $6,000 in dividends on its common stock. Renaldo Cross Company would report cash outflows from activities, as follows: Multiple Choice Operating, $0; investing, $10,000; financing, $8,000. Operating, $0; investing, $0; financing, $18,000. Operating, $2,000; investing, $10,000; financing, $6,000. Operating, $2,000; investing, $0; financing, $16,000. 身

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4. What is the amount of total assets on December 31?