Requirement-a: To calculate: The Net cash provided by or used in investing activities Introduction: Cash Flow statement: The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows: Cash flows from operating activities Cash Flows from investing activities Cash flows from financing activities (Note: Cash flows from operating activities can be prepared using direct or indirect method)

Question

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Answer 1

Question

Chapter 14, Problem 2PS

Summary Introduction

Requirement-a:

To calculate:

The Net cash provided by or used in investing activities

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net cash provided by investing activities is $39,000

Explanation of Solution

The Net cash provided by or used in investing activities is explained as follows:

Cash Flow From Investing Activities:
Purchase of Bus	$ (33,000)
Sale of old equipment	$ 72,000
Cash Provided by Investing Activities		$ 39,000

Summary Introduction

Requirement-b:

To calculate:

The Net cash provided by or used in financing activities

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net cash used in financing activities is $160,000

Explanation of Solution

The Net cash provided by or used in financing activities is explained as follows:

Cash Flow From Financing Activities:
Cash Dividend	$ (80,000)
Interest Paid on Debt	$ (25,000)
Repurchase of stock	$ (55,000)
Cash used in Financing Activities		$(160,000)

Summary Introduction

Requirement-c:

To calculate:

The Net increase or decrease in cash for the year

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net increase in cash for the year is $84,000

Explanation of Solution

The Net increase or decrease in cash for the year is explained as follows:

Cash Flow From Operating Activities:
Cash Payment to Suppliers	$ (95,000)
Cash collected from Customers	$ 300,000
Cash Provided by Operating Activities		$ 205,000

Cash Flow From Investing Activities:
Purchase of Bus	$ (33,000)
Sale of old equipment	$ 72,000
Cash Provided by Investing Activities		$ 39,000

Cash Flow From Financing Activities:
Cash Dividend	$ (80,000)
Interest Paid on Debt	$ (25,000)
Repurchase of stock	$ (55,000)
Cash used in Financing Activities		$(160,000)

Net Increase in Cash for the year		$ 84,000

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Answer 2

Question

Chapter 14, Problem 2PS

Summary Introduction

Requirement-a:

To calculate:

The Net cash provided by or used in investing activities

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net cash provided by investing activities is $39,000

Explanation of Solution

The Net cash provided by or used in investing activities is explained as follows:

Cash Flow From Investing Activities:
Purchase of Bus	$ (33,000)
Sale of old equipment	$ 72,000
Cash Provided by Investing Activities		$ 39,000

Summary Introduction

Requirement-b:

To calculate:

The Net cash provided by or used in financing activities

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net cash used in financing activities is $160,000

Explanation of Solution

The Net cash provided by or used in financing activities is explained as follows:

Cash Flow From Financing Activities:
Cash Dividend	$ (80,000)
Interest Paid on Debt	$ (25,000)
Repurchase of stock	$ (55,000)
Cash used in Financing Activities		$(160,000)

Summary Introduction

Requirement-c:

To calculate:

The Net increase or decrease in cash for the year

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net increase in cash for the year is $84,000

Explanation of Solution

The Net increase or decrease in cash for the year is explained as follows:

Cash Flow From Operating Activities:
Cash Payment to Suppliers	$ (95,000)
Cash collected from Customers	$ 300,000
Cash Provided by Operating Activities		$ 205,000

Cash Flow From Investing Activities:
Purchase of Bus	$ (33,000)
Sale of old equipment	$ 72,000
Cash Provided by Investing Activities		$ 39,000

Cash Flow From Financing Activities:
Cash Dividend	$ (80,000)
Interest Paid on Debt	$ (25,000)
Repurchase of stock	$ (55,000)
Cash used in Financing Activities		$(160,000)

Net Increase in Cash for the year		$ 84,000

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Answer 3

Question

Chapter 14, Problem 2PS

Summary Introduction

Requirement-a:

To calculate:

The Net cash provided by or used in investing activities

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net cash provided by investing activities is $39,000

Explanation of Solution

The Net cash provided by or used in investing activities is explained as follows:

Cash Flow From Investing Activities:
Purchase of Bus	$ (33,000)
Sale of old equipment	$ 72,000
Cash Provided by Investing Activities		$ 39,000

Summary Introduction

Requirement-b:

To calculate:

The Net cash provided by or used in financing activities

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net cash used in financing activities is $160,000

Explanation of Solution

The Net cash provided by or used in financing activities is explained as follows:

Cash Flow From Financing Activities:
Cash Dividend	$ (80,000)
Interest Paid on Debt	$ (25,000)
Repurchase of stock	$ (55,000)
Cash used in Financing Activities		$(160,000)

Summary Introduction

Requirement-c:

To calculate:

The Net increase or decrease in cash for the year

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net increase in cash for the year is $84,000

Explanation of Solution

The Net increase or decrease in cash for the year is explained as follows:

Cash Flow From Operating Activities:
Cash Payment to Suppliers	$ (95,000)
Cash collected from Customers	$ 300,000
Cash Provided by Operating Activities		$ 205,000

Cash Flow From Investing Activities:
Purchase of Bus	$ (33,000)
Sale of old equipment	$ 72,000
Cash Provided by Investing Activities		$ 39,000

Cash Flow From Financing Activities:
Cash Dividend	$ (80,000)
Interest Paid on Debt	$ (25,000)
Repurchase of stock	$ (55,000)
Cash used in Financing Activities		$(160,000)

Net Increase in Cash for the year		$ 84,000

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Answer 4

Question

Chapter 14, Problem 2PS

Summary Introduction

Requirement-a:

To calculate:

The Net cash provided by or used in investing activities

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net cash provided by investing activities is $39,000

Explanation of Solution

The Net cash provided by or used in investing activities is explained as follows:

Cash Flow From Investing Activities:
Purchase of Bus	$ (33,000)
Sale of old equipment	$ 72,000
Cash Provided by Investing Activities		$ 39,000

Summary Introduction

Requirement-b:

To calculate:

The Net cash provided by or used in financing activities

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net cash used in financing activities is $160,000

Explanation of Solution

The Net cash provided by or used in financing activities is explained as follows:

Cash Flow From Financing Activities:
Cash Dividend	$ (80,000)
Interest Paid on Debt	$ (25,000)
Repurchase of stock	$ (55,000)
Cash used in Financing Activities		$(160,000)

Summary Introduction

Requirement-c:

To calculate:

The Net increase or decrease in cash for the year

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net increase in cash for the year is $84,000

Explanation of Solution

The Net increase or decrease in cash for the year is explained as follows:

Cash Flow From Operating Activities:
Cash Payment to Suppliers	$ (95,000)
Cash collected from Customers	$ 300,000
Cash Provided by Operating Activities		$ 205,000

Cash Flow From Investing Activities:
Purchase of Bus	$ (33,000)
Sale of old equipment	$ 72,000
Cash Provided by Investing Activities		$ 39,000

Cash Flow From Financing Activities:
Cash Dividend	$ (80,000)
Interest Paid on Debt	$ (25,000)
Repurchase of stock	$ (55,000)
Cash used in Financing Activities		$(160,000)

Net Increase in Cash for the year		$ 84,000

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Answer 5

Chapter 14, Problem 2PS

Summary Introduction

Requirement-a:

To calculate:

The Net cash provided by or used in investing activities

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net cash provided by investing activities is $39,000

Explanation of Solution

The Net cash provided by or used in investing activities is explained as follows:

Cash Flow From Investing Activities:
Purchase of Bus	$ (33,000)
Sale of old equipment	$ 72,000
Cash Provided by Investing Activities		$ 39,000

Summary Introduction

Requirement-b:

To calculate:

The Net cash provided by or used in financing activities

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net cash used in financing activities is $160,000

Explanation of Solution

The Net cash provided by or used in financing activities is explained as follows:

Cash Flow From Financing Activities:
Cash Dividend	$ (80,000)
Interest Paid on Debt	$ (25,000)
Repurchase of stock	$ (55,000)
Cash used in Financing Activities		$(160,000)

Summary Introduction

Requirement-c:

To calculate:

The Net increase or decrease in cash for the year

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net increase in cash for the year is $84,000

Explanation of Solution

The Net increase or decrease in cash for the year is explained as follows:

Cash Flow From Operating Activities:
Cash Payment to Suppliers	$ (95,000)
Cash collected from Customers	$ 300,000
Cash Provided by Operating Activities		$ 205,000

Cash Flow From Investing Activities:
Purchase of Bus	$ (33,000)
Sale of old equipment	$ 72,000
Cash Provided by Investing Activities		$ 39,000

Cash Flow From Financing Activities:
Cash Dividend	$ (80,000)
Interest Paid on Debt	$ (25,000)
Repurchase of stock	$ (55,000)
Cash used in Financing Activities		$(160,000)

Net Increase in Cash for the year		$ 84,000

Answer 6

Chapter 14, Problem 2PS

Summary Introduction

Requirement-a:

To calculate:

The Net cash provided by or used in investing activities

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net cash provided by investing activities is $39,000

Explanation of Solution

The Net cash provided by or used in investing activities is explained as follows:

Cash Flow From Investing Activities:
Purchase of Bus	$ (33,000)
Sale of old equipment	$ 72,000
Cash Provided by Investing Activities		$ 39,000

Answer 7

Chapter 14, Problem 2PS

Summary Introduction

Requirement-a:

To calculate:

The Net cash provided by or used in investing activities

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Answer 8

Expert Solution

Answer to Problem 2PS

The Net cash provided by investing activities is $39,000

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

The Net cash provided by or used in investing activities is explained as follows:

Cash Flow From Investing Activities:
Purchase of Bus	$ (33,000)
Sale of old equipment	$ 72,000
Cash Provided by Investing Activities		$ 39,000

Answer 13

Summary Introduction

Requirement-b:

To calculate:

The Net cash provided by or used in financing activities

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net cash used in financing activities is $160,000

Explanation of Solution

The Net cash provided by or used in financing activities is explained as follows:

Cash Flow From Financing Activities:
Cash Dividend	$ (80,000)
Interest Paid on Debt	$ (25,000)
Repurchase of stock	$ (55,000)
Cash used in Financing Activities		$(160,000)

Answer 14

Summary Introduction

Requirement-b:

To calculate:

The Net cash provided by or used in financing activities

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Answer 15

Expert Solution

Answer to Problem 2PS

The Net cash used in financing activities is $160,000

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

The Net cash provided by or used in financing activities is explained as follows:

Cash Flow From Financing Activities:
Cash Dividend	$ (80,000)
Interest Paid on Debt	$ (25,000)
Repurchase of stock	$ (55,000)
Cash used in Financing Activities		$(160,000)

Answer 20

Summary Introduction

Requirement-c:

To calculate:

The Net increase or decrease in cash for the year

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Expert Solution

Answer to Problem 2PS

The Net increase in cash for the year is $84,000

Explanation of Solution

The Net increase or decrease in cash for the year is explained as follows:

Cash Flow From Operating Activities:
Cash Payment to Suppliers	$ (95,000)
Cash collected from Customers	$ 300,000
Cash Provided by Operating Activities		$ 205,000

Cash Flow From Investing Activities:
Purchase of Bus	$ (33,000)
Sale of old equipment	$ 72,000
Cash Provided by Investing Activities		$ 39,000

Cash Flow From Financing Activities:
Cash Dividend	$ (80,000)
Interest Paid on Debt	$ (25,000)
Repurchase of stock	$ (55,000)
Cash used in Financing Activities		$(160,000)

Net Increase in Cash for the year		$ 84,000

Answer 21

Summary Introduction

Requirement-c:

To calculate:

The Net increase or decrease in cash for the year

Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities

Cash Flows from investing activities

Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

Answer 22

Expert Solution

Answer to Problem 2PS

The Net increase in cash for the year is $84,000

Answer 23

Expert Solution

Answer 24

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

The Net increase or decrease in cash for the year is explained as follows:

Cash Flow From Operating Activities:
Cash Payment to Suppliers	$ (95,000)
Cash collected from Customers	$ 300,000
Cash Provided by Operating Activities		$ 205,000

Cash Flow From Investing Activities:
Purchase of Bus	$ (33,000)
Sale of old equipment	$ 72,000
Cash Provided by Investing Activities		$ 39,000

Cash Flow From Financing Activities:
Cash Dividend	$ (80,000)
Interest Paid on Debt	$ (25,000)
Repurchase of stock	$ (55,000)
Cash used in Financing Activities		$(160,000)

Net Increase in Cash for the year		$ 84,000

Answer 27

Ch. 14 - Prob. 2PS Ch. 14 - The Crusty Pie Co., which specializes in apple...Ch. 14 - The ABC Corporation has a profit margin on sales...Ch. 14 - A company’s current ratio is 2. If the company...Ch. 14 - Cash flow from investing activities excludes:...Ch. 14 - Cash flow from operating activities includes:...Ch. 14 - Prob. 8PS Ch. 14 - Prob. 9PS Ch. 14 - Prob. 10PS Ch. 14 - Prob. 11PS

Answer to Problem 2PS

Explanation of Solution

Answer to Problem 2PS

Explanation of Solution

Answer to Problem 2PS

Explanation of Solution

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Chapter 14 Solutions