The following accounts and corresponding balances were drawn from Drea Company’s Year 2 and Year 1 year-end balance sheets.  (See below). Other information drawn from the accounting records: Drea incurred a $1,500 loss on the sale of investment securities during Year 2. The only transaction related to land was a purchase of land in Year 2. Requirements: Calculate the amount of cash inflow or (outflow) related to the investments account for Drea, Year 2. Calculate the amount of cash inflow or (outflow) related to the Land account for Year 2. Based on the above, what is Drea's cash flow from investing activities for Year 2?

Q: Below is a list of independent transactions. For each transaction, identify which section of the…

A: A cash flow statement indicates cash inflow and cash outflow information of a particular time…

Q: The starting and ending balances for relevant asset and liability accounts that changed during the…

A: The investing activities are related to the acquisition and disposal of non-current assets. The…

Q: On the basis of the details of the following fixed asset account, indicate the items to be reported…

A: OPERATING ACTIVITIESOperating activities are Principal revenue Producing Activities & Other…

Q: Strawbale, Incorporated purchases a $329,800 building, paying $228,000 in cash and signing a…

A: The cash flow statement only records those transactions due to which there is cash inflow or…

Q: The following data are available for Mazaya Company. Sale of land R.0.200,000; Sale of equipment…

A: Statement of cash flows Cash flow from financing activities:     Proceeds from issue of…

Q: A building with a book value of $43,555 is sold for $59,366 cash. Using the indirect method, this…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Statement of Cash Flows (partial) Cash flows from (used for) operating activities: Net income…

A: Lets understand the basics. Cashflow statement is mainly divided into three type of activities which…

Q: The double entry Non-current assets Case study no. 1: A VAT payer company has the following…

A: Depreciation refers to the reduction in the hysterical cost of the tangible asset acquired by the…

Q: A building with a book value of $46,349 is sold for $61,396 cash. Using the indirect method, this…

A: Step 1:When an asset is sold for an amount higher than its book value it means that the asset is…

Q: A corporation uses the indirect method of preparing the statement of cash flows. A fixed asset has…

A: Under indirect method of preparing statement of cash flows, all non cash incomes are deducted from…

Q: Kela Corporation reports net income of $550,000 that includes depreciation expense of $77,000. Also,…

A: Note: Amount borrowed through notes payable will be included under cash flow from financing…

Q: The following transactions and events occurred by Smiley Enterprise during year 2019. Assuming that…

A:

Q: ascade Company was started on January 1, Year 1, when it acquired $167,000 cash from the owners.…

A: Financial Statements -Financial statements include Income Statements, Capital statements, Balance…

Q: The net income reported on the income statement for the current year was $80,100. Depreciation…

A: Cash flows from (used for) investing activities = -Purchase of equipment - Purchase of land

Q: During the current year, a business borrowed $60,000 cash from its bank to finance the purchase of…

A: In this question, we are required to determine the transactions contributing to the financing…

Q: a) What was the cost of raw materials purchased during the year?  b) What was the direct-labour cost…

A: Since there is more than 3 question asked, SME is going to answer only 3 subparts only.

Q: The company did not dispose of any property, plant, and equipment during the year. Its net income…

A: Solution: Statement of Cash Flows For Current Year Particulars Details Amount Cash Flow…

Q: A corporation uses the indirect method for preparing the statement of cash flows. A fixed asset has…

A: The cash flow statement is helpful for the stakeholders that they can identify the organization's…

Q: Additional information: 1. 2. 3. Profit for the year was $28,970. Dividends declared and paid were…

A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…

Q: When preparing the Statement of Cash Flow using the indirect method for the current year, which of…

A: Cash Flow Statement: A cash flow statement is a kind of financial statement that offers aggregate…

Q: Identify and describe the various classifications of cash flows presented in astatement of cash…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: The following are the financial statements of Owiki Sdn. Bhd. (Owiki): Owiki Sdn. Bhd. Statement of…

A: Cash Flow Statement - Cash Flow Statement is the statement that shows the cash inflow and outflow of…

Q: Land Transactions on the Statement of Cash Flows Cameron Corporation purchased land for $175,000,…

A: Lets understand the basics. Cashflow statement is divided into three types of activity which are,…

Q: State the section(s) of the statement of cash flows prepared by the indirect method (operating…

A: Dividend paid = Beginning Dividend payable + Dividend declared - Ending Dividend payable = $5,000 +…

Q: orepare a statement of cash flows. Use the indirect method of reporting cash flows from operating…

A: Solution: Statement of cash flows for year 2 is as under:

Q: review the change in one item for each of the key parts of the statement (Operations, Investing,…

A: A cash flow statement refers to that financial statement that reflects the cash inflows and outflows…

Q: (a) Net income for the year was $30,000.           (b) Dividends of $10,000 were declared and paid.…

A: Statement of cash flows is used to show the cash movement in the company. Each cash flow is…

Q: Sheffield's Manufacturing had underapplied overhead totaling $6400 during the period. To dispose of…

A: The overhead is applied to the production on the basis of the pre-determined overhead rate. The…

Q: You were engaged to audit the books of DEF Corporation who is in its first year and is using the…

A: Accrual Basis of Accounting: In the accrual basis of accounting, the revenue is recognized in the…

Q: Proceeds from the sale of equipment by Perkins Nonprofit were $100. The equipment had a historical…

A: This question requires us to state the section or part of Indirect Method Cash Flow Statement which…

Q: Garrett Company had the following activities for a recent year ended December 31: Sold land that…

A: A cash flow statement is a statement of the inflow and outflow of cash for a business during the…

Q: Sideways Company provided the following data: Purchased a building for P1,500,000. Paid P500,000 and…

A: Investing activities of an enterprise refers to acquisition (purchase) and disposal (sale) of long…

Q: using the image attached , please prepare the cash flow statement for the year. Also alongside the…

A: The cash flow statement provides a detailed analysis of how cash moves in and out of a business…

Q: from operating activities if the indirect method is used. 1. Goodwill impairment $400,000. 2. Issued…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Pronghorn Corporation purchased the net assets of Ivanhoe Corporation on January 2, 2020 for…

A: Journal entry It is a record of a business transactions in the business books. In double-entry…

Q: XYZ Corporation pays cash for its Federal Income Taxes, and pays cash to buy a new truck to use in…

A: Payment of taxes comes under cash flow from operating activities. Purchase of an asset is cash flow…

Q: sing indirect method, compute for the following: 1. net cash flow from operating activities 2. net…

A: Cash flow statement is a statement which shows all cash inflows and outflows from operating…

Q: The land was purchased during the year for  RO 60,000 and sold during the year for  RO 25000 . The…

A: Cash flow statement divides into three parts which are, Cashflow from operating activity Cashflow…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is