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What is the net cash from operating activities for the year ended December 31, 20X6? a) $30,120 b) $33,120 c) $35,520 d) $42,500

What is the net cash from operating activities for the year ended December 31, 20X6? a) $30,120 b) $33,120 c) $35,520 d) $42,500

FINANCIAL ACCOUNTING
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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Additional information is as follows: During the year, Logistical sold equipment for proceeds of $50,000. The equipment had a cost of $80,000 and accumulated depreciation of $35,000. During the year, a review of Logistical's goodwill was completed, and it was determined that the asset was impaired and should be written down by $3,000. Logistical did not purchase any additional investments in the year. Any changes in the fair value of investments have been adjusted through other comprehensive income. These securities are not cash equivalents. During the year, a new lease was signed for equipment that had a fair market value of $45,000. Depreciation expense for the year totalled $1,000. The new lease was signed in the year, which required a $7,000 payment at the start of the lease. Logistical elects to classify any interest paid and dividends paid as financing activities. During the year, Logistical declared dividends of $5,620. What is the net cash from operating activities for the year ended December 31, 20X6? a) $30,120 b) $33,120 c) $35,520 d) $42,500
Transcribed Image Text:Additional information is as follows: During the year, Logistical sold equipment for proceeds of $50,000. The equipment had a cost of $80,000 and accumulated depreciation of $35,000. During the year, a review of Logistical's goodwill was completed, and it was determined that the asset was impaired and should be written down by $3,000. Logistical did not purchase any additional investments in the year. Any changes in the fair value of investments have been adjusted through other comprehensive income. These securities are not cash equivalents. During the year, a new lease was signed for equipment that had a fair market value of $45,000. Depreciation expense for the year totalled $1,000. The new lease was signed in the year, which required a $7,000 payment at the start of the lease. Logistical elects to classify any interest paid and dividends paid as financing activities. During the year, Logistical declared dividends of $5,620. What is the net cash from operating activities for the year ended December 31, 20X6? a) $30,120 b) $33,120 c) $35,520 d) $42,500
2. Select financial information for Logistical Corp. as at December 31, 20X6, follows: Logistical Corp. Statement of comprehensive income For the year ended December 31, 20X6 $405,000 (248,000) 157,000 (6,000) (30,100) (95,000) 5,000 (3,000) 27,900 (5,580) 22,320 Sales Cost of goods sold Gross profit Interest expense Depreciation expense Operating expenses Gain on sale of equipment Goodwill impairment Income before income taxes Income tax expense Profit or loss Other comprehensive income: holding gains on investments at fair value through other comprehensive income (FVOCI) Comprehensive income 2,400 24,720 Logistical Corp. Statement of financial position As at December 31, 20X6 20X6 20X5 Change $ 57,000 8,900 45,000 100,000 415,000 (95,100) 15,000 $545,800 $ 76,000 6,500 39,000 80,000 450,000 (100,000) 18,000 $569,500 $(19,000) 2,400 6,000 20,000 (35,000) 4,900 (3,000) Cash Investments at FVOCI - Accounts receivable (A/R) Inventory Property, plant, and equipment Accumulated depreciation Goodwill Total assets Accounts payable Cash dividends payable Bond payable Interest payable Lease liability Long-term debt Deferred income tax liability $ 75,000 10,500 87,000 6,000 38,000 205,000 3,600 10,000 105,300 5,400 $545,800 $ 68,500 6,000 76,000 6,000 6,500 4,500 11,000 38,000 (99,000) (3,800) 304,000 7,400 10,000 88,600 3,000 $569,500 Common shares Retained earnings Accumulated other comprehensive income Total liabilities and equity 16,700 2,400
Transcribed Image Text:2. Select financial information for Logistical Corp. as at December 31, 20X6, follows: Logistical Corp. Statement of comprehensive income For the year ended December 31, 20X6 $405,000 (248,000) 157,000 (6,000) (30,100) (95,000) 5,000 (3,000) 27,900 (5,580) 22,320 Sales Cost of goods sold Gross profit Interest expense Depreciation expense Operating expenses Gain on sale of equipment Goodwill impairment Income before income taxes Income tax expense Profit or loss Other comprehensive income: holding gains on investments at fair value through other comprehensive income (FVOCI) Comprehensive income 2,400 24,720 Logistical Corp. Statement of financial position As at December 31, 20X6 20X6 20X5 Change $ 57,000 8,900 45,000 100,000 415,000 (95,100) 15,000 $545,800 $ 76,000 6,500 39,000 80,000 450,000 (100,000) 18,000 $569,500 $(19,000) 2,400 6,000 20,000 (35,000) 4,900 (3,000) Cash Investments at FVOCI - Accounts receivable (A/R) Inventory Property, plant, and equipment Accumulated depreciation Goodwill Total assets Accounts payable Cash dividends payable Bond payable Interest payable Lease liability Long-term debt Deferred income tax liability $ 75,000 10,500 87,000 6,000 38,000 205,000 3,600 10,000 105,300 5,400 $545,800 $ 68,500 6,000 76,000 6,000 6,500 4,500 11,000 38,000 (99,000) (3,800) 304,000 7,400 10,000 88,600 3,000 $569,500 Common shares Retained earnings Accumulated other comprehensive income Total liabilities and equity 16,700 2,400
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