Effect of Transactions on Cash FlowsState the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows:a. Retired $310,000 of bonds, on which there was $3,100 of unamortized discount, for $322,000.b. Sold 7,000 shares of $30 par common stock for $59 per share.c. Sold equipment with a book value of $48,700 for $70,100.d. Purchased land for $406,000 cash.e. Purchased a building by paying $51,000 cash and issuing a $110,000 mortgage note payable.f. Sold a new issue of $180,000 of bonds at 99.g. Purchased 2,900 shares of $25 par common stock as treasury stock at $46 per share.h. Paid dividends of $2.00 per share. There were 25,000 shares issued and 4,000 shares of treasury stock.a.b.C.d.e.f.9.h.EffectAmount

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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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Statement of Cash Flows (Indirect Method)Use the following information regarding the Lund Corporation to (a) prepare a statement of cash flows using the indirect method and (b) compute Lund’s operating-cash-flow-to-current-liabilities ratio. Accounts payable increase $9,000 Accounts receivable increase 4,000 Accrued liabilities decrease 3,000 Amortization expense 6,000 Cash balance, January 1 22,000 Cash balance, December 31 15,000 Cash paid as dividends 29,000 Cash paid to purchase land 90,000 Cash paid to retire bonds payable at par 60,000 Cash received from issuance of common stock 35,000 Cash received from sale of equipment 17,000 Depreciation expense 29,000 Gain on sale of equipment 4,000 Inventory decrease 13,000 Net income 76,000 Prepaid expenses increase 2,000 Average current liabilities 100,000 a. Use negative signs with cash outflow answers. LUND CORPORATIONStatement of Cash FlowsFor Year Ended December 31 Cash Flow from…
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Complete the statement of sources and uses of cash from the following entries: Net income $ 2,000 Dividends 800 Additions to inventory 170 Additions to receivables 200 Depreciation 140 Reduction in payables 600 Net issuance of long-term debt 350 Sale of fixed assets 110
Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: Retired $320,000 of bonds, on which there was $3,200 of unamortized discount, for $333,000. Sold 7,000 shares of $20 par common stock for $31 per share. Sold equipment with a book value of $49,800 for $71,700. Purchased land for $300,000 cash. Purchased a building by paying $50,000 cash and issuing a $90,000 mortgage note payable. Sold a new issue of $250,000 of bonds at 97. Purchased 6,400 shares of $25 par common stock as treasury stock at $47 per share. Paid dividends of $2.50 per share. There were 32,000 shares issued and 5,000 shares of treasury stock. Effect Amount a. $ b. $ c. $ d. $ e. $ f. $ g. $ h. $
Wolff Company’s income statement and comparative balance sheets follow: Cash dividends of $29,000 were declared and paid during 20X7. Also in 20X7, PPE was purchased for cash, and bonds payable were issued for cash. Bond interest is paid semiannually on June 30 and December 31. Accounts payable relate to merchandise purchases. Compute the change in cash that occurred during 20X7. Prepare and 20X7 statement of cash flows using the indirect method.
Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $300,000 of bonds, on which there was $3,000 of unamortized discount, for $312,000. b. Sold 12,000 shares of $10 par common stock for $25 per share. c. Sold equipment with a book value of $61,500 for $88,600. d. Purchased land for $462,000 cash. e. Purchased a building by paying $45,000 cash and issuing a $100,000 mortgage note payable. f. Sold a new issue of $170,000 of bonds at 98. g. Purchased 3,600 shares of $35 par common stock as treasury stock at $68 per share. h. Paid dividends of $1.80 per share. There were 27,000 shares issued and 4,000 shares of treasury stock. a. b. C. d. e. f. g. h. Effect ▼ $ $ $ $ $ $ Amount
company purchases stock for $40,000 cash. This transaction should be shown on the statement of cash flows under Select one: a. Investing activities b. Noncash investing and financing activities c. Financing activities d. Operating activities
Indicate the effect, if any, that each separate transaction has on financing cash flows. Note: Select "No Effect" if there is no effect. a. Long-term notes payable with a carrying value of $17,600 are retired for $19,900 cash, resulting in a $2,300 loss. b. Paid cash dividends of $13,600 to common stockholders. c. Acquired $22,600 worth of machinery in exchange for common stock. Items a. Long-term notes payable b. Dividends c. Machinery Amount $ $ $ Effect on financing cash flows 19,900 Decrease 13,600 Decrease 22,600 No effect
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For Exercise 16-2, note (1) the section of the statement the transaction would impact (0,l or F), (2) whether it is an inflow or outflow and (3) the cash amount that would be reported EXERCISE 16-2 Effect of transactions on cash flows State the effect (cash receipt or payment and amount) of each of the following tra actions, considered individually, on cash flows: trans a. Sold 5,000 shares of $30 par common stock for $45 per share. b. Sold equipment with a book value of $42,500 for $41,000. c. Purchased land for $120,000 cash. d. Purchased 5,000 shares of $30 par common stock as treasury stock at $50 per share e. Sold a new issue of $100,000 of bonds at 101. f. Paid dividends of $1.50 per share. There were 30,000 shares issued and 5,00 shares of treasury stock. g. Retired $500,000 of bonds, on which there was $2,500 of unamortized discount for $501,000. h. Purchased a building by paying $30,000 cash and issuing a $90,000 mortgage noe payable. Objective 1 /b. Cash receipt, $41,000

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