FRANK CORPORATIONStatement of Cash FlowsFor the Year Ended December 31, 2020Cash flows from operating activities:Net earningsAdd (deduct) items not affecting cash:Decrease in accounts payableNet cash flow from operating activitiesCash flows from investing activities:Net cash flow from investing activitiesCash flows from financing activities:Borrowing on long-term noteNet cash inflow from financing activitiesNet increase in cash during 2020Cash, beginning of 2020Cash, end of 20206600000 Selected 2020 transactions are as follows:a. Purchased investment securities for $6,000 cash.b. Borrowed $17,000 on a two-year, 8 percent interest-bearing note.c. During 2020, sold machinery for its carrying amount; received $12,500 in cash.d. Purchased machinery for $52,000; paid $10,000 in cash and signed a four-year note payable to the dealer for $42,000.e. Declared and paid a cash dividend of $11,000 on December 31, 2020.Selected account balances at December 31, 2019 and 2020 are as follows:CashAccounts receivableInventoryAccounts payableAccrued wages payableIncome taxes payableOne-fourth of the sales and one-third of the purchases were made on credit.FRANK CORPORATIONStatement of EarningsFor the Year Ended December 31, 2020Sales revenueCost of salesGross profitExpensesSalaries and wagesDepreciationRent (no accruals)December 3120202019$83,000 $22,00018,000 12,50053,00062,0008,000 12,0001,300 2,0006,000 3,500Interest (no accruals)Income taxTotal expensesNet earnings$52,00010,2006,80013,20012,800$420,000278,000142,00095,000$ 47,000

A cash flow statement is an important tool used to manage finances by tracking the cash flow for an…

TRANK CORPORATION Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities: Net earnings Add (deduct) items not affecting cash: Decrease in accounts payable Net cash flow from operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Borrowing on long-term note Net increase in cash during 2020 Cash, beginning of 2020 Cash, end of 2020 Net cash inflow from financing activities FA 0 0 0 0 O

TRANK CORPORATION Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities: Net earnings Add (deduct) items not affecting cash: Decrease in accounts payable Net cash flow from operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Borrowing on long-term note Net increase in cash during 2020 Cash, beginning of 2020 Cash, end of 2020 Net cash inflow from financing activities FA 0 0 0 0 O

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Entity L reported net income of $125,000 for the current year and uses the indirect method to report operating activities cash flow. Accounts Receivable increased by $14,000 during the year. Choose the appropriate category on the statement of cash flows to report the increase in Accounts Receivable. Cash Flows From Operating Activities-Add to Net Income Cash Flows From Operating Activities-Deduct from Net Income Cash Flows From Investing Activities Cash Flows From Financing Activities Non-cash
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Current Attempt in Progress Vaughn Corporation had the following activities in 2020. 1. Payment of accounts payable $774,000 Issuance of common stock $270,000 Payment of dividends $384,000 2. 3. 4. Net cash 5. 6. Compute the amount Vaughn should report as net cash provided (used) by financing activities in its 2020 statement of cash flows. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) by financing activities $ Collection of note receivable $92,000 Issuance of bonds payable $548,000 Purchase of treasury stock $43,000 LA
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Statement of Cash Flow Problem The Statement of Cash Flows for the fiscal year ended November 30, 2019, and other data for Metro Corporation are shown below: Cash flows from operating activities: Cash collections from customers 330,000 Dividends received 20,000 Cash outflows for: Merchandise (100,000) Salaries (50,000) Taxes (25,000) Other operating expenses (20,000) Net cash provided by operating activities 155,000 Cash flows from investing activities: Sales of investments 30,000 Purchased machinery…
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Statement of Cash Flows The following is a list of the items for Lombardo Company's 2019 statement of cash flows: a. depreciation expense, $4,300 b. proceeds from sale of land, $5,500 c. payment of dividends, $5,000 d. net income, $7,800 e. conversion of bonds to common stock, $7,000 k. ending cash balance, $13,800 f. increase in accounts payable, $3,000 Required: Prepare the statement of cash flows. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments. LOMBARDO COMPANY Statement of Cash Flows For Year Ended December 31, 2019 Operating Activities: Adjustment for noncash income items: g. proceeds from issuance of note, $6,100 h. gain on sale of land, $1,900 1. payment for purchase of building, $13,000 j. increase in accounts receivable, $2,800 Adjustments for cash flow effects from working capital items: Investing Activities: Financing Activities: 00 00
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