During Year 1, El Paso Company had the following changes in account balances: • The Accumulated Depreciation account had a beginning balance of $77,500 and an ending balance of $108,500. The increase was due to depreciation expense. • The Long-Term Notes Payable account had a beginning balance of $124,000 and an ending balance of $63,000. The decrease was due to repayment of debt. • The Equipment Account had a beginning balance of $105,000 and an ending balance of $289,500. The increase was due to the purchase of other operational assets. • The Long-Term Investments Account (Marketable Securities) had a beginning balance of $75,600 and an ending balance of $52,500. The decrease was due to the sale of investments at cost. • The Dividends Payable account had a beginning balance of $50,400 and an ending balance of $42,000. There were $84,000 of dividends declared during the period. • The Interest Payable account had a beginning balance of $9,450 and an ending balance of $5,250. The difference was due to the payment of interest. What is the net cash flow from financing activities? $153,400 outflow $92,400 inflow $61,000 inflow $61,000 outflow None of the above.

During Year 1, El Paso Company had the following changes in account balances: • The Accumulated Depreciation account had a beginning balance of $77,500 and an ending balance of $108,500. The increase was due to depreciation expense. • The Long-Term Notes Payable account had a beginning balance of $124,000 and an ending balance of $63,000. The decrease was due to repayment of debt. • The Equipment Account had a beginning balance of $105,000 and an ending balance of $289,500. The increase was due to the purchase of other operational assets. • The Long-Term Investments Account (Marketable Securities) had a beginning balance of $75,600 and an ending balance of $52,500. The decrease was due to the sale of investments at cost. • The Dividends Payable account had a beginning balance of $50,400 and an ending balance of $42,000. There were $84,000 of dividends declared during the period. • The Interest Payable account had a beginning balance of $9,450 and an ending balance of $5,250. The difference was due to the payment of interest. What is the net cash flow from financing activities? $153,400 outflow $92,400 inflow $61,000 inflow $61,000 outflow None of the above.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 85APSA: Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto...

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Determine the bad debt expense for year 2 based on the preceding facts.
Use the following information to answer the next two questions: Harris Company uses the allowance method of handling its credit losses. It estimates credit losses at 1.5% of credit sales, which were $2,700,000 during the year. On December 31, the Accounts Receivable balance was $475,000, and the Allowance for Doubtful Accounts had a balance of $30,600 before adjustment. Indicate the effect (increase / decrease) that recording the bad debt expense for the year will have on the company's assets, liabilities, and equity, respectively. Assets = Liabilities + Equity What would be the Net Realizable Value of Harris Company's Accounts Receivable at year end, after the adjusting entry for bad debts has been recorded? Select one: a. 403,900 b. 465,100 c. 444,400 d. 434,500
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At the end of the prior year, Company reported the following information: Accounts Receivable (Gross) were $125,000 and Allowance for Doubtful Accounts were $2,400. During the current year, sales on account were $150,000, collections on account were $165,000, write-off of bad debts were $6,500, and the bad debt expense adjustment was $5,500. Show how the amounts related to Accounts Receivable would be reported on the balance sheet for the current year. Disregard income tax considerations.
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The net income reported on the income statement for the current year was $311,700. Depreciation recorded on equipment and a building amounted to $93,200 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Line Item Description End of Year Beginning of Year Cash $78,550 $83,260 Accounts receivable (net) 99,600 102,740 Inventories 196,380 177,010 Prepaid expenses 10,920 11,740 Accounts payable (merchandise creditors) 87,740 92,920 Salaries payable 12,650 11,570 Question Content Area a. Prepare the "Cash flows from (used for) operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. blankblankStatement of Cash Flows (partial) Line Item Description Amount Amount Cash flows from (used for) operating activities: $Net income…
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