Question

a. G 4)A company acquired a building for $500.000, paying $50,000 in cash and issuing common stocks to finance the remaining balance. In a statement of cash flows, what amount is included in investing activities for the above transaction? $0 $50,000 $450,000 $500,000 5) Foxx Corp's comparative balance sheet at December 31, 2018 and 2017 reported accumulated depreciation balances of $1,245,000 and $900,000, respectively. Property with a cost of $75,000 and a book value of $57,000 was the only property sold in 2018. The amount of depreciation expense taken in 2018 was $327,000 $345.000 $363.000 S402,000, 6) During 2014, Stewart Company reported sales revenues of $70,000. All of these sale were made on account, Accounts receivable was $35,000 at the beginning and $24,500 at the end. How much cash was provided by collections from customers during the year? a. 45.500 59,500 70,000 80,500

Answer 1

4)

Building acquired = $500,000

Cash paid = $50,000

Common stock issued = $450,000

Building acquired of $450,000 by issuing common stock is a non cash investing and financing activity.

Hence, in the cash flows from investing activities, $50,000 will be included.

Correct option is (b)

5.

Accumulated depreciation on property sold = Cost price of property - Book value of property

= 75,000 - 57,000

= $18,000

Depreciation expense for 2018 = Accumulated depreciation on December 31, 2018 + Accumulated depreciation on property sold - Accumulated depreciation on December 31, 2017

= 1,245,000 + 18,000 - 900,000

= $363,000

Correct option is (c)

6.

Cash collections from customers = Accounts receivables in the beginning + Sales on account - Accounts receivables in the end

= 35,000 + 70,000 - 24,500

= $80,500

Correct option is (d)

Kindly give a positive rating if you are satisfied with the answer. Feel free to ask if you have any doubt. Thanks.