ssssssssss The Harbaugh Corporation paid a $39,000 cash dividend this year but also received $11,000 as a dividendfrom one of the company's investments. If U.S. GAAP is applied, how are these two transactions reportedwithin a statement of cash flows? If IFRS is applied, how are these two transactions reported within astatement of cash flows?

Statement of Cash Flow is a part of financial statements that shows the inflow and outflow of cash…

Answered: The Harbaugh Corporation paid a $39,000…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 6DQ

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A long-term investment in bonds with a cost of $500,000 was sold for $600,000 cash. (a) What was the gain or loss on the sale? (b) What was the effect of the transaction on cash flows? (c) How would the transaction be reported on the statement of cash flows if cash flows from operating activitiesare reported by the indirect method?
U.S. GAAP designates cash outflows for interest payments and cash inflows from interest and dividends receivedas operating cash flows. Dividends paid to shareholders are classified as financing cash flows. How are thesecash flows reported under IFRS?
Which of the following transactions would not appear on a statement of cash flows prepared by the direct method? A net loss from operations O The payment of cash dividends that were declared last year The amount paid to acquire treasury stock Payment of last year's income tax liability
What amount should be reported as net cash provided by investing activities? What amount should be reported as cash balance at year-end?
Below are several transactions for Meyers Corporation for 2021.Required: 1. For each transaction, determine the amount of cash flows (indicate inflows with a “+” and outflows with a “−”). If cash is involved in the transaction, indicate whether Meyers should classify it as operating, investing, or financing in a statement of cash flows. Enter N/A if the question is not applicable to the statement. 2. Calculate net cash flows for the year. 3. Assuming the balance of cash on January 1, 2021, equals $5,400, calculate the balance of cash on December 31, 2021.
How are cash inflows from dividends and interest and cash outflows for dividends andinterest classified in AF’s cash flow statements? Is this classification the same as ordifferent from cash flow statements prepared in accordance with U.S. GAAP?
Consistent with U.S GAAP, we classify cash flows as operating, investing, or financing activities under IFRS. However, with regard to interest and dividend inflows and outflows, IFRS a. permits companies to report cash outflows from interest payments as either operating or investing cash flows. b. permits companies to report cash inflows from interest and dividends as either operating or financing cash flows. c. permits companies to report dividends paid as either financing or operating cash flows. d. requires companies to report cash outflows for interest payments and cash inflows from interest and dividends received as operating cash flows.
Using the information in the table below (note that the balance sheet accounts listed below are the only items on the company's balance sheet for each year and the income statement accounts are the only items on the company's income statement for each year), what did this company report as Cash flow from Operating Activities on its 2021 statement of cash flows? Account Accounts payable Accounts receivable Accruals Additional paid in capital Cash Common Stock COGS Depreciation expense Interest expense Inventories Long-term debt Net fixed assets Notes payable. O Operating expenses (excl. depr.) Retained earnings Sales Taxes 1) 57,780 2) 53,480 3) 54,780 4) 56,480 5) 55,080 2020 34,400 35,800 20,840 36,000 50,400 8,000 151,640 10,000 20,000 20,780 30,240 209,700 17,600 93,960 169,600 322,000 13,200 2021 33,200 30,960 22,840 38,800 46,840 10,000 165,920 17,600 24,000 21,560 ? 247,680 15,600 102,960 192,800 359,200 16,400
22. Dolan Company reports its income from investments under the equity method and recognized income of $25,000 from its investment in Moss Co. during the current year, even though no dividends were declared or paid by Moss during the year. On Dolan's statement of cash flows (indirect method), the $25,000 should be shown as cash inflow from investing activities. be shown as cash outflow from financing activities. be shown as a deduction from net income in the cash flows from operating activities section. not be shown.
Assume the company purchases land for $1,000,000, paying $ 400,000 cash and borrowing the remainder with long-term notes payable. How should this transaction be reported on a statement of cash flows?
Which of the following should be deducted from net incomein calculating net cash flow from operating activities using the indirect method? Group of answer choices a loss on sale of long-term investments a increase in accounts payable a increase in accounts receivable preferred dividends declared and paid
On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale of investments would be a. deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends b. added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends c. deducted from net income in converting the net income reported on the income statement to cash flows from operating activities d. added to net income in converting the net income reported on the income statement to cash flows from operating activities

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