Wyoming Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheetWyoming CompanyComparative Balance SheetDecember 31, 2024 and 202320242023Common StockRetained EarningsTreasury StockTotal Equity$17,000114,000(8,200)$122,800$12,50079,000(5,300)$86,200Note:1. There was no retirement of stock during the year.2. There weresales of treasury stock during the year.3. Common Stock was issued for cash.Which of the following statements is correct?Increase/(Decrease)$4,50035,000(2,900)$36,600OA. There was a positive cash flow of $4,500 from the issuance of Common Stock.OB. There was zero net cash flow from transactions involving Common Stock.OC. There was a negative cash flow of $4,500 from the issuance of Common Stock.OD. There was positive cash flow of $17,000 from issuance of Common Stock.

The objective of the question is to determine the correct statement regarding the cash flow from the…

Answered: Wyoming Company uses the indirect…

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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Determining Cash Flows from Financing Activities Nichols Inc. reported the following amounts on its balance sheet at the end of 2019 and 2018 for equity: 12/31/2019 12/31/2018 Common stock $210,000 $135,000 Retained earnings 495,300 412,800 Required: Assume that Nichols did not retire any stock during 2019, it reported $105,610 of net income for 2019, and any dividends declared were paid in cash. Determine the amounts Nichols would report in the financing section of the statement of cash flows. Issuance of common stock $fill in the blank 1 Payment of dividends $fill in the blank 2
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What is the firm's cash flow from financing?
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Effect of Transactions on Cash Flows State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $220,000 of bonds, on which there was $2,200 of unamortized discount, for $229,000. b. Sold 12,000 shares of $30 par common stock for $53 per share. c. Sold equipment with a book value of $52,900 for $76,200. d. Purchased land for $329,000 cash. e. Purchased a building by paying $75,000 cash and issuing a $120,000 mortgage note payable. f. Sold a new issue of $320,000 of bonds at 98. g. Purchased 4,900 shares of $35 par common stock as treasury stock at $63 per share. h. Paid dividends of $2.20 per share. There were 19,000 shares issued and 3,000 shares of treasury stock. Effect Amount а. b. $ С. d. е. $ f. $ g. 2$ h.

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