Finch Company had the following balance sheet accounts at December 31, 20X1 and 20X2: Assets 20X2 20X1 Cash $484,000 $220,000 Short-term investments (AFS debt securities) 660,000 Accounts receivable (net) 1,122,000 1,122,000 Inventory 1,518,000 1,320,000 Long-term investments 440,000 660,000 Property, plant & equipment 3,740,000 2,200,000 Accumulated depreciation (990,000) (990,000) Patent 198,000 220,000 Accounts payable & accrued liabilities 826,000 584,000 Bonds Payable 1,000,000 1,000,000 Notes payable (due 20X6) 638,000 Common stock, $1 par 1,760,000 1,540,000 Additional paid-in capital 880,000 550,000 Retained earnings 2,068,000. 1,078,000 The following additional information is available for 20X2 activities: Net income was $1,650,000. Cash dividends of $660,000 were declared and paid. Equipment with a cost of $1,200,000 and accumulated depreciation of $848,000 was sold for $396,000. A long-term equity investment was sold for $352,000. There were no other transactions affecting long-term investments. Common stock was sold for proceeds of $550,000. Finch will report net cash flows from operating activities for 20X2 of O $2,498,000. O $2,288,000. O $2,388,000. O $2,564,000.
Finch Company had the following balance sheet accounts at December 31, 20X1 and 20X2: Assets 20X2 20X1 Cash $484,000 $220,000 Short-term investments (AFS debt securities) 660,000 Accounts receivable (net) 1,122,000 1,122,000 Inventory 1,518,000 1,320,000 Long-term investments 440,000 660,000 Property, plant & equipment 3,740,000 2,200,000 Accumulated depreciation (990,000) (990,000) Patent 198,000 220,000 Accounts payable & accrued liabilities 826,000 584,000 Bonds Payable 1,000,000 1,000,000 Notes payable (due 20X6) 638,000 Common stock, $1 par 1,760,000 1,540,000 Additional paid-in capital 880,000 550,000 Retained earnings 2,068,000. 1,078,000 The following additional information is available for 20X2 activities: Net income was $1,650,000. Cash dividends of $660,000 were declared and paid. Equipment with a cost of $1,200,000 and accumulated depreciation of $848,000 was sold for $396,000. A long-term equity investment was sold for $352,000. There were no other transactions affecting long-term investments. Common stock was sold for proceeds of $550,000. Finch will report net cash flows from operating activities for 20X2 of O $2,498,000. O $2,288,000. O $2,388,000. O $2,564,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Finch Company had the following balance sheet accounts at December 31, 20X1 and 20X2:
Assets
20X2
20X1
Cash
$484,000
$220,000
Short-term investments (AFS debt securities)
660,000
Accounts receivable (net)
1,122,000
1,122,000
Inventory
1,518,000 1,320,000
Long-term investments
440,000
660,000
Property, plant & equipment
3,740,000 2,200,000
Accumulated depreciation
(990,000) (990,000)
Patent
198,000
220,000
Accounts payable & accrued liabilities
826,000
584,000
Bonds Payable
1,000,000
1,000,000
Notes payable (due 20X6)
638,000
Common stock, $1 par
1,760,000
1,540,000
Additional paid-in capital
880,000
550,000
Retained earnings
2,068,000.
1,078,000
The following additional information is available for 20X2 activities:
Net income was $1,650,000.
Cash dividends of $660,000 were declared and paid.
Equipment with a cost of $1,200,000 and accumulated depreciation of $848,000 was sold for $396,000.
A long-term equity investment was sold for $352,000. There were no other transactions affecting long-term
investments.
Common stock was sold for proceeds of $550,000.
Finch will report net cash flows from operating activities for 20X2 of
O $2,498,000.
O $2,288,000.
O $2,388,000.
O $2,564,000.
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