Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3[The following information applies to the questions displayed below)The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-endbalance sheets:Account TInvestment securitiesMachineryLandYear 2$101,000Year 1520,300145,000$ 116,900425,00093,800Other information drawn from the accounting records:1. Delsey Incurred a $1,340 loss on the sale of investment securities during Year 2.2. Old machinery with a book value of $5,000 (cost of $25,530 minus accumulated depreciation of $20,530) was sold.The income statement showed a gain on the sale of machinery of $4.880.3. Delsey did not sell land during the year.Exercise 12-10A (Algo) Part bb. Compute the amount of cash flow associated with the purchase of machinery.Cs of machinery pathased

To compute the amount of cash flow associated with the purchase of machinery, we need to analyze the…

Answered: Exercise 12-10A (Algo) Determining cash…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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TB MC Qu. 12-133 In preparing a company's statement... In preparing a company's statement of cash flows using the Indirect method, the following information is available: Net income Accounts payable increased by Accounts receivable decreased by Inventories increased by Depreciation expense Net cash provided by operating activities was: Multiple Choice $120,000. $60,000. $70,000. $80,000. $130,000. $52,000 18,000 25,000 5,000 30,000
BIC Penc Cash Dividends Cash 24 For a recent year a corporation's financial statements reported the following: Based on the following information, what amount will the corporation report as Net Cash Provided (Used) by Operating Activities on the statement of cash flows? Net Income Depreciation $ $ Increase in accounts receivable Decrease in accounts payable $ $b A) B) Net cash provided by operating activities Net cash provided by operating activities C) Net cash provided by operating activities D) Net cash provided by operating activities E) None of the above nommon to 201 25 The acquisition of land by issuing common stock is ommi A) a noncash transaction which is not reported in the body of a statement of cash flows. B) a cash transaction and would be reported in the body of a statement of cash flows. C) a noncash transaction and would be reported in the body of a statement of cash flows. D) only reported if the statement of cash flows is prepared using the direct method. E) none of…
P12-5 LO12-2, 12-4, 12-6 Chapter Supplement B) Preparing a Statement of Cash Flows with Gain on Sale of Equipment (Indirect Method) (AP12-5) XS Supply Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Gain on sale of equipment Cost of goods sold Other expenses Net income Additional Data: Current Year 2. Evaluate the statement of cash flows. $ 34,000 35,000 41,000 121,000 (30,000) $201,000 $ 36,000 1,200 38,000 88,600 37,200 $201,000 $120,000 1,000 (70,000) (38,800) $ 12,200 Prior Year $ 29,000 28,000 38,000 100,000…
Required information [The following information applies to the questions displayed below] Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit. (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash Accounts receivable. Inventory Total current assets GOLDEN CORPORATION Comparative Balance Sheets December 31 Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable. Income taxes payable. Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity GOLDEN CORPORATION Income Statement For Current Year Ended…
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MC Qu. 12-124 The net cash flow provided by.. The net cash flow provided by operating activitles is an Inflow of $37,042, the net cash flow used in Investing activities is $16,831, and the net cash flow used in financing activities is $26,397. If the beginning cash account balance is $11,283, what is the ending cash account balance? Multiple Choice $27.476 ($6.186) $38,759 $5,097
Required Information Exercise 12-10A (Algo) Determining cash flows from Investing activities LO 12-3 [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Investment securities Machinery Land Other Information drawn from the accounting records: Year 2 $ 104,300 524,400 143,300 1. Delsey Incurred a $1,210 loss on the sale of Investment securities during Year 2. 2. Old machinery with a book value of $4,860 (cost of $25.120 minus accumulated depreciation of $20,260) was sold. The Income statement showed a gain on the sale of machinery of $4,670. 3. Delsey did not sell land during the year. Exercise 12-10A (Algo) Part e e. Prepare the investing activities section of the statement of cash flows. Note: Amounts to be deducted should be indicated with a minus sign. DEL SEY COMPANY Statement of Cash Flows (Investing Activities) For the Year…
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