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Presented below are shareholders' equity accounts of Minzy Company: 2017 2016 Common stock, 22,000 and 20,000 shares, respectively, for 2017 and 2016 (USD 1 par value) APIC Common P220,000 P200,000 210,000 180,000 Preferred shares, 7,500 and 6,000 shares, 36,700 27,500 respectively, for 2017 and 2016 (USD 5 par value) APIC - Preferred 70,000 45,000 APIC-Treasury 31,000 35,000 Retained earnings 290,000 240,000 These transactions occurred in 2017: Preferred stock was issued for cash. ● A small stock dividend was declared and issued on common stock. ● USD 38,000 in cash dividends were declared and paid. • Treasury shares worth USD 15,000 were also reissued. Determine Minzy's net income/net loss for the year 2017 using the information above and b) what is the net cash flow that Minzy's statement of cash flows for 2017 should show in the financing section? Show solution and explanation.

Presented below are shareholders' equity accounts of Minzy Company: 2017 2016 Common stock, 22,000 and 20,000 shares, respectively, for 2017 and 2016 (USD 1 par value) APIC Common P220,000 P200,000 210,000 180,000 Preferred shares, 7,500 and 6,000 shares, 36,700 27,500 respectively, for 2017 and 2016 (USD 5 par value) APIC - Preferred 70,000 45,000 APIC-Treasury 31,000 35,000 Retained earnings 290,000 240,000 These transactions occurred in 2017: Preferred stock was issued for cash. ● A small stock dividend was declared and issued on common stock. ● USD 38,000 in cash dividends were declared and paid. • Treasury shares worth USD 15,000 were also reissued. Determine Minzy's net income/net loss for the year 2017 using the information above and b) what is the net cash flow that Minzy's statement of cash flows for 2017 should show in the financing section? Show solution and explanation.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Presented below are shareholders' equity accounts of Minzy Company: 2017 2016 Common stock, 22,000 and 20,000 shares, P220,000 P200,000 respectively, for 2017 and 2016 (USD 1 par value) APIC Common 210,000 180,000 Preferred shares, 7,500 and 6,000 shares, 36,700 27,500 respectively, for 2017 and 2016 (USD 5 par value) APIC Preferred 70,000 45,000 APIC - Treasury 31,000 35,000 Retained earnings 290,000 240,000 These transactions occurred in 2017: Preferred stock was issued for cash. A small stock dividend was declared and issued on common stock. • USD 38,000 in cash dividends were declared and paid. • Treasury shares worth USD 15,000 were also reissued. Determine Minzy's net income/net loss for the year 2017 using the information above and b) what is the net cash flow that Minzy's statement of cash flows for 2017 should show in the financing section? Show solution and explanation.
Transcribed Image Text:Presented below are shareholders' equity accounts of Minzy Company: 2017 2016 Common stock, 22,000 and 20,000 shares, P220,000 P200,000 respectively, for 2017 and 2016 (USD 1 par value) APIC Common 210,000 180,000 Preferred shares, 7,500 and 6,000 shares, 36,700 27,500 respectively, for 2017 and 2016 (USD 5 par value) APIC Preferred 70,000 45,000 APIC - Treasury 31,000 35,000 Retained earnings 290,000 240,000 These transactions occurred in 2017: Preferred stock was issued for cash. A small stock dividend was declared and issued on common stock. • USD 38,000 in cash dividends were declared and paid. • Treasury shares worth USD 15,000 were also reissued. Determine Minzy's net income/net loss for the year 2017 using the information above and b) what is the net cash flow that Minzy's statement of cash flows for 2017 should show in the financing section? Show solution and explanation.
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