Homework Answers
Option 'B' is correct
Amortization of Patent for the period.
Amortization of patent does not involve cash flow. It is a non cash expense. It does not create a Cash Flow.
Where as, the company purchasing shares its own stock from a stockholder requires payment of cash. Payment of a cash dividend and sale of equipment at book value do require payment of cash. So Options A, C, D create a cash flow.
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24. Which of the following transactions would not create a cash flow? A) The company purchased...
Need help with these questions. 38. Which of the following would not be a cash flow...
Need help with these questions.
38. Which of the following would not be a cash flow from financing activities? A) Issuance of common stock. B) Borrowing on a long-term note payable. C) Collection of a cash dividend. D) Repayment of principal on a long-term note payable. E) None of the above is correct. 39. Boston Beer reported they sold equipment for $222 million and purchased $1,515 million of new equipment. The equipment sold had a net book value of $150...
cash flow
The following transactions are extracted from MNP Ltd. for the year ended on June 30, 2020:(i) Plant assets sold at Tk. 5,300 which was purchased 6 years before for Tk. 20,000. The plant assetswere depreciated on a straight-line basis assuming useful life of 10 years with no residual value.(ii) Issued 10,000 shares of Tk. 10 each at a price of Tk. 43 per share.(iii) Issued shares for a 70% interest in ABC Co. for Tk. 9,00,000.(iv) Patent amortization for the...
Suppose AF company uses the indirect method to prepare the cash flow statement. Indicate which of...
Suppose AF company uses the indirect method to prepare the cash flow statement. Indicate which of the following items will appear in the cash flow from financing activities section of the cash flow statement. [Tick all that apply]. Cash paid to buy back bonds Cash paid to buy back company's own stock Cash paid to purchase equipment. Cash proceeds from the sale of the equipment Depreciation expense Dividends paid Gain on the sale of the equipment Interest expense
IO Chapter 14,P7 Cash Flow Classification Effect on Cash operating Investing Financing NoncashSoure use Activity Activity...
IO Chapter 14,P7 Cash Flow Classification Effect on Cash operating Investing Financing NoncashSoure use Activity Activity Activity TransactionIncreaseDecrease No Effect Transaction 1. Incurred a net loss. 2. Declared and issued a stock dividend. 3. Paid a cash dividend. 4. Collected accounts recéivable. 5. Purchased inventory with cash. 6. Retired long-term debt with cash. 7. Sold available-for-sale securities at a loss. Issued stock for equipment. 9. 8. Purchased a one-year insurance polilcy with cash. 10. Purchased treasury stock with cash. 11....
Explain briefly how each of the following transactions would affect a company’s balance sheet. Remember, assets...
Explain briefly how each of the following transactions would affect a company’s balance sheet. Remember, assets must equal liabilities plus owners’ equity before and after the transaction. a) Sale of used equipment with a book value of $300,000 for $500,000 cash. b) Purchase of a new $80 million building, financed 40 percent with cash and 60 percent with a bank loan. c) Purchase of a new building for $60 million cash. d) A $40,000 payment to trade creditors. e) A...
25. Which of the following would not be a cash flow from investing activities? A) Purchase...
25. Which of the following would not be a cash flow from investing activities? A) Purchase of long-term investments. B) Sale of a patent. C) Collection of principal from a long-term note receivable. D) Collection of interest revenue on a long-term note. E) None of the above is correct.
Statement of Cash Flows (Indirect Method) The Sky Company's income statement and comparative balance sheets as...
Statement of Cash Flows (Indirect Method) The Sky Company's income statement and comparative balance sheets as of December 31 of 2019 and 2018 follow: SKY COMPANY Income Statement For the Year Ended December 31, 2019 Sales Revenue $800,000 Dividend Income 19,000 819,000 Cost of Goods Sold $440,000 Wages and Other Operating Expenses 130,000 Depreciation Expense 39,000 Patent Amortization Expense 7,000 Interest Expense 13,000 Income Tax Expense 30,000 Loss on Sale of Equipment 5,000 Gain on Sale of Investments (10,000) 654,000...
land transactions on the statement of cash flow Example Exercise 16-5 Land Transactions on the Statement...
land transactions on the statement of cash flow
Example Exercise 16-5 Land Transactions on the Statement of Cash Flows Alpha Corporation purchased land for $125,000. Later in the year, the company sold a different piece of land with a book Obj. 2 value of $165,000 for $200,000. How are the effects of these transactions reported on the statement of cash flows? Follow My Example 16-5 The gain on the sale of the land is deducted from net income, as follows:...
QUESTION 23 Which of the following would be classified as a financing activity on a statement...
QUESTION 23 Which of the following would be classified as a financing activity on a statement of cash flows? Declaration and distribution of a stock dividend Sale of equipment O Payment of interest to a creditor Payment of a bond payable QUESTION 24 Net cash flow from operating activities for 2021 for Light Corporation was $990,000. The following items are reported on the financial statements for 2021: Depreciation and amortization Cash dividends paid on common stock $ 60,000 36,000 Increase...
4 Explain briefly how each of the following transactions would affect a company’s balance sheet. Remember,...
4 Explain briefly how each of the following transactions would affect a company’s balance sheet. Remember, assets must equal liabilities plus owners’ equity before and after the transaction. a) Sale of used equipment with a book value of $300,000 for $500,000 cash. b) Purchase of a new $80 million building, financed 40 percent with cash and 60 percent with a bank loan. c) Purchase of a new building for $60 million cash. d) A $40,000 payment to trade creditors. e)...
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38. Which of the following would not be a cash flow from financing activities? A) Issuance of common stock. B) Borrowing on a long-term note payable. C) Collection of a cash dividend. D) Repayment of principal on a long-term note payable. E) None of the above is correct. 39. Boston Beer reported they sold equipment for $222 million and purchased $1,515 million of new equipment. The equipment sold had a net book value of $150...
IO Chapter 14,P7 Cash Flow Classification Effect on Cash operating Investing Financing NoncashSoure use Activity Activity Activity TransactionIncreaseDecrease No Effect Transaction 1. Incurred a net loss. 2. Declared and issued a stock dividend. 3. Paid a cash dividend. 4. Collected accounts recéivable. 5. Purchased inventory with cash. 6. Retired long-term debt with cash. 7. Sold available-for-sale securities at a loss. Issued stock for equipment. 9. 8. Purchased a one-year insurance polilcy with cash. 10. Purchased treasury stock with cash. 11....
25. Which of the following would not be a cash flow from investing activities? A) Purchase of long-term investments. B) Sale of a patent. C) Collection of principal from a long-term note receivable. D) Collection of interest revenue on a long-term note. E) None of the above is correct.
Statement of Cash Flows (Indirect Method) The Sky Company's income statement and comparative balance sheets as of December 31 of 2019 and 2018 follow: SKY COMPANY Income Statement For the Year Ended December 31, 2019 Sales Revenue $800,000 Dividend Income 19,000 819,000 Cost of Goods Sold $440,000 Wages and Other Operating Expenses 130,000 Depreciation Expense 39,000 Patent Amortization Expense 7,000 Interest Expense 13,000 Income Tax Expense 30,000 Loss on Sale of Equipment 5,000 Gain on Sale of Investments (10,000) 654,000...
land transactions on the statement of cash flow
Example Exercise 16-5 Land Transactions on the Statement of Cash Flows Alpha Corporation purchased land for $125,000. Later in the year, the company sold a different piece of land with a book Obj. 2 value of $165,000 for $200,000. How are the effects of these transactions reported on the statement of cash flows? Follow My Example 16-5 The gain on the sale of the land is deducted from net income, as follows:...
QUESTION 23 Which of the following would be classified as a financing activity on a statement of cash flows? Declaration and distribution of a stock dividend Sale of equipment O Payment of interest to a creditor Payment of a bond payable QUESTION 24 Net cash flow from operating activities for 2021 for Light Corporation was $990,000. The following items are reported on the financial statements for 2021: Depreciation and amortization Cash dividends paid on common stock $ 60,000 36,000 Increase...
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