Saddleback Company paid off $36,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?Multiple CholceAssets, $36,000 Increase; equlty. $36,000 Increase.Assets, $36,000 decrease: liabilitles, $36,000 decrease.Assets, $36,000 decrease; liabilities, $36,000 Increase.Llabilitles, $36,000 decrease; egulty, $36,000 Increase.Assets, $36,000 decrease; gulty $36,000 decrease.

Payment to accounts payable = $36000

Answered: Saddleback Company paid off $36,000 of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1n. Account
The accounting records of EZ Company provided the data below. Net income $ 69,000 Depreciation expense 16,000 Increase in inventory 6,000 Decrease in salaries payable 4,500 Decrease in accounts receivable 8,000 Amortization of patent 1,200 Amortization of premium on bonds 8,900 Increase in accounts payable 13,000 Cash dividends paid 22,000 Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.)
A company has current assets of $475,000 and current liabilities of $325,000. For each action on the right, indicate the effect on the current ratio (Increase, decrease, or no change). Analyze each action independently of the others. v The company uses cash to pay off a bank loan that is not due for two years. A. No change. B. Increase, v The company collects cash from outstanding accounts receivable. C. Decrease. v The company recognizes insurance expense from a prepaid insurance asset. v The company receives cash from issuing new shares of stock. v The company sells $9,500 of products on account. Using FIFO, the cost of goods sold for the products is $5,200. v The company acquires $12,000 of inventory on account. earch 12:01 PM 5/5/2021 DELL F3 F4 F5 F6 F7 F8 F9 F10 F11 F12 PrtScr Insert Delete #3 %2$ 近
A company reported net income of $250,000. Beginning balances in Accounts Recelvable and Accounts Payable were $20,000 and $21,000 respectively. Ending balances in these accounts were $10,500 and $29,000, respectively. Assuming that all relevant information has been presented, what is the company's net cash flows from operating activities? Multiple Cholce $259,500. $232,500. $267,500. $250,000.
Mazaya Company has the following information available: Net Income R.O. 37,500; Cash Provided by Operations R.O. 46,500; Cash Sales R.O. 97,500; Capital Expenditures R.O.16,500; Dividends Paid R.O. 4,500. What is Mazaya's free cash flow?
Jefferson Services Company records the collection of $500 cash for previously accrued revenues and then makes an accrual of $325 for another revenue. The impact of these two entries on total net income and working capital is an increase of: Select one: O a. Net Income $325, Working Capital $175 O b. Net Income $825, Working Capital $325 Oc Net Income $325, Working Capital $500 Od. Net Income $325, Working Capital $325 Oe. Net Income $s00, Working Capital $175
Mazaya Company has the following information available: Net Income R.O. 55,000; Cash Provided by Operations R.O. 68,200; Cash Sales R.O. 143,000; Capital Expenditures R.O.24,200; Dividends Paid R.O. 6,600. What is Mazaya's free cash flow? Select one: a. R.O.61,600 b. R.O.37,400 c R.O.44,000 d. R.O.24,200
A company settles a long-term note payable plus interest by paying $68,000 cash toward the principal amount and $5,440 cash for interest. The amount reported as a use of cash under cash flows from financing activities is:
X Co. reported an ending cash balance of P35,000. An examination of the Cash T-account revealed debits of P60,000 and credits of P45,000 during the period. The company's beginning (normal) cash balance was:
Concord Corporation had the following transactions that took place during the year: I. Recorded credit sales of $3050 I. Collected $1830 from customers III. Recorded sales returns of $610 and credited the customer's account. What is the total effect of these transactions on free cash flow? Cannot be determined O Increase Decrease O No Effect
Saddleback Company paid off $46,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation? Multiple Choice O O Assets decrease $46,000; equity decreases $46,000. Assets decrease $46,000; liabilities decrease $46,000. Assets decrease $46,000; liabilities increase $46,000. Liabilities decrease $46,000; equity increases $46,000. Assets increase $46,000; equity increases $46,000. 11
Hassan Corporation reports the following information: Net income OMR 500,000 Depreciation expense 140,000 Decrease in accounts receivable 60,000 Hasaan should report cash provided by operating activities of Select one: O a. OMR 300,000. O b. OMR 580,000. c. OMR 420,000. d. OMR 700,000.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS