Cash dividends declared in the current year and paid in the next year are recorded as...
Cash dividends declared in the current year and paid in the next year are recorded as a cash payment in
a.financing activities in the current year.
b.operating activities in the current year.
c.financing activities in the year paid.
d.investing activities in the year paid.
Which of the following would be added to net income in computing cash flows from operating activities?
a.An increase in accounts receivable
b.An increase in inventories
c.A decrease in accrued expenses
d.A decrease in prepaid expenses
During the year, Michael Company paid $10,000 to retire
bonds with a face value of $11,000 and a book value of $10,700.
Michael Company recorded the following entry at the time of the
retirement:
| Bonds Payable | 11,000 | |
| Discount on Bonds Payable | 300 | |
| Cash | 10,000 | |
| Gain on Retirement of Bonds Payable | 700 |
The cash paid of $10,000 is a cash payment for a(n)
__________ activity and the gain decreased __________
activities.
a.investing; operating
b.operating; financing
c.financing; operating
d.financing; investing
Which of the following is not a category of operating cash flows?
a.Payments to employees
b.Payment of bonds
c.Payment of interest taxes
d.Collections from customers
Which of the following items would be deducted from net income to determine net cash provided by operating activities using the indirect method?
a.Loss on sale of plant assets and amortization of bond payable discount
b.Amortization of bond payable premium and gain on sale of equipment
c.Amortization expense and gain on sale of equipment
d.Decrease in income taxes payable and amortization of goodwill
In the statement of cash flows, depreciation is a(n)
a.increase to net income in the operating section.
b.deduction from net income in the operating section.
c.increase in cash flow in the investing section.
d.decrease in cash flow in the investing section.
Homework Answers
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Cash dividends declared in the current year and paid in
the next year are recorded as...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremont Corporation to prepare...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremont Corporation to prepare a statement of cash flows using the indirect method: Accounts payable increase $14,000 Accounts receivable increase 7,000 Accrued liabilities decrease 5,000 Amortization expense 31,000 Cash balance, January 1 21,000 Cash balance, December 31 141,000 Cash paid as dividends 41,000 Cash paid to purchase land 81,000 Cash paid to retire bonds payable at par 70,000 Cash received from issuance of common stock 75,000 Cash received...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremantle Corporation to prepare...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremantle Corporation to prepare a statement of cash flows using the indirect method Accounts payable increase Accounts receivable increase Accrued liabilities decrease Amortization expense Cash balance, January 1 Cash balance, December 31 Cash paid as dividends Cash paid to purchase land Cash paid to retire bonds payable at par Cash received from issuance of common stock 75,000 Cash received from sale of equipment Depreciation expense Gain on sale...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare a statement of cash flows using the indirect method: Accounts payable decrease $7,000 Accounts receivable increase 9,800 Wages payable decrease 4,200 Amortization expense 22.400 Cash balance, January 1 42,000 Cash balance, December 31 9,800 Cash paid as dividends 8,400 Cash paid to purchase land 140,000 Cash paid to retire bonds payable at par 105,000 Cash received from issuance of common stock 63,000 Cash received...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Lund Corporation to (a)...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Lund Corporation to (a) prepare a statement of cash flows using the indirect method and (b) compute Lund's operating-cash-flow-to-current-liabilities ratio. Accounts payable increase Accounts receivable increase Accrued liabilities decrease Amortization expense Cash balance, January 1 $11,000 4,000 3,000 7,000 22,000 16,000 1,000 90,000 60,000 35,000 17,000 29,000 5,000 13,000 78,000 3,000 120,000 Cash balance, December 31 Cash paid as dividends Cash paid to purchase land Cash paid to...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremont Corporation to prepare...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremont Corporation to prepare a statement of cash flows using the indirect method: Accounts payable increase $14,000 Accounts receivable increase 7,000 Accrued liabilities decrease 5,000 Amortization expense 31,000 Cash balance, January 1 21,000 Cash balance, December 31 141,000 Cash paid as dividends 41,000 Cash paid to purchase land 81,000 Cash paid to retire bonds payable at par 70,000 Cash received from issuance of common stock 75,000 Cash received...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare...
Statement of Cash Flows (Indirect Method)
Use the following information regarding the Newcastle Corporation
to prepare a statement of cash flows using the indirect method:
Remember to use negative signs with answers when
appropriate.
Accounts payable decrease Accounts receivable increase Wages payable decrease Amortization expense Cash balance, January 1 Cash balance, December 31 Cash paid as dividends Cash paid to purchase land Cash paid to retire bonds payable at par Cash received from issuance of common stock Cash received from...
Accounts payable increase Accounts recevable increase Accrued abilities decrease Amortization expense Cash balance january 1 Cash...
Accounts payable increase Accounts recevable increase Accrued abilities decrease Amortization expense Cash balance january 1 Cash balance December 31 Carcha das duidends Cash paid to purchase land Cash paid to retire bonds payable at par Cash received from issuance of common stock Cash received from sale of equipment Deprecation expense Gain on sale of equipment Inventory decrease 515.300 6.800 5.100 10.200 37.400 25,500 49.300 15 000 102.000 59.500 28.900 49.300 6,800 22.100 129.200 3.400 Support Prepsd expenses increase Averare current...
Additional Information for 2018 The parent issued bonds during the year for cash. Amortization of...
We were unable to transcribe this imageAdditional Information for 2018 The parent issued bonds during the year for cash. Amortization of databases amounts to $26,000 per year. The parent sold a building with a cost of $102,000 but a $51,000 book value for cash on May 11 . The subsidiary purchased equipment on July 23 for $249,000 in cash .Late in November, the parent issued stock for cash During the year, the subsidiary paid dividends of $52,000. Both parent and...
Accounts payable increase Accounts receivable increase Accrued liabilities decrease Amortization expense Cash balance, January 1 Cash...
Accounts payable increase Accounts receivable increase Accrued liabilities decrease Amortization expense Cash balance, January 1 Cash balance, December 31 Cash paid as dividends Cash paid to purchase land Cash paid to retire bonds payable at par Cash received from issuance of common stock Cash received from sale of equipment Depreciation expense Gain on sale of equipment Inventory decrease Net income Prepaid expenses increase Average current liabilities $13,500 6,000 4,500 9,000 33,000 22,500 43.500 135,000 90,000 52,500 25,500 43,500 6,000 19,500...
Statement of Cash Flows (Indirect Method) Dair Company's income statement and comparative balance sheets follow. DAIR...
Statement of Cash Flows (Indirect Method) Dair Company's income statement and comparative balance sheets follow. DAIR COMPANY Income Statement For Year Ended December 31,2011 Sales $ 700,000 Cost of goods sold $ 440,000 Wages and other operating expenses 95,000 Depreciation expense 21,000 Amortization expense 6,000 Interest expense 10,000 Income tax expense 36,000 Loss on bond retirement 5,000 613,000 Net income $87,000 DAIR COMPANY Balance Sheets Dec. 31, 2011 Dec. 31, 2010 Assets Cash $ 22,000 $ 18,000 Accounts receivable 54,000...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremont Corporation to prepare a statement of cash flows using the indirect method: Accounts payable increase $14,000 Accounts receivable increase 7,000 Accrued liabilities decrease 5,000 Amortization expense 31,000 Cash balance, January 1 21,000 Cash balance, December 31 141,000 Cash paid as dividends 41,000 Cash paid to purchase land 81,000 Cash paid to retire bonds payable at par 70,000 Cash received from issuance of common stock 75,000 Cash received...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremantle Corporation to prepare a statement of cash flows using the indirect method Accounts payable increase Accounts receivable increase Accrued liabilities decrease Amortization expense Cash balance, January 1 Cash balance, December 31 Cash paid as dividends Cash paid to purchase land Cash paid to retire bonds payable at par Cash received from issuance of common stock 75,000 Cash received from sale of equipment Depreciation expense Gain on sale...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare a statement of cash flows using the indirect method: Accounts payable decrease $7,000 Accounts receivable increase 9,800 Wages payable decrease 4,200 Amortization expense 22.400 Cash balance, January 1 42,000 Cash balance, December 31 9,800 Cash paid as dividends 8,400 Cash paid to purchase land 140,000 Cash paid to retire bonds payable at par 105,000 Cash received from issuance of common stock 63,000 Cash received...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Lund Corporation to (a) prepare a statement of cash flows using the indirect method and (b) compute Lund's operating-cash-flow-to-current-liabilities ratio. Accounts payable increase Accounts receivable increase Accrued liabilities decrease Amortization expense Cash balance, January 1 $11,000 4,000 3,000 7,000 22,000 16,000 1,000 90,000 60,000 35,000 17,000 29,000 5,000 13,000 78,000 3,000 120,000 Cash balance, December 31 Cash paid as dividends Cash paid to purchase land Cash paid to...
Statement of Cash Flows (Indirect Method)
Use the following information regarding the Newcastle Corporation
to prepare a statement of cash flows using the indirect method:
Remember to use negative signs with answers when
appropriate.
Accounts payable decrease Accounts receivable increase Wages payable decrease Amortization expense Cash balance, January 1 Cash balance, December 31 Cash paid as dividends Cash paid to purchase land Cash paid to retire bonds payable at par Cash received from issuance of common stock Cash received from...
Accounts payable increase Accounts recevable increase Accrued abilities decrease Amortization expense Cash balance january 1 Cash balance December 31 Carcha das duidends Cash paid to purchase land Cash paid to retire bonds payable at par Cash received from issuance of common stock Cash received from sale of equipment Deprecation expense Gain on sale of equipment Inventory decrease 515.300 6.800 5.100 10.200 37.400 25,500 49.300 15 000 102.000 59.500 28.900 49.300 6,800 22.100 129.200 3.400 Support Prepsd expenses increase Averare current...
We were unable to transcribe this imageAdditional Information for 2018 The parent issued bonds during the year for cash. Amortization of databases amounts to $26,000 per year. The parent sold a building with a cost of $102,000 but a $51,000 book value for cash on May 11 . The subsidiary purchased equipment on July 23 for $249,000 in cash .Late in November, the parent issued stock for cash During the year, the subsidiary paid dividends of $52,000. Both parent and...
Accounts payable increase Accounts receivable increase Accrued liabilities decrease Amortization expense Cash balance, January 1 Cash balance, December 31 Cash paid as dividends Cash paid to purchase land Cash paid to retire bonds payable at par Cash received from issuance of common stock Cash received from sale of equipment Depreciation expense Gain on sale of equipment Inventory decrease Net income Prepaid expenses increase Average current liabilities $13,500 6,000 4,500 9,000 33,000 22,500 43.500 135,000 90,000 52,500 25,500 43,500 6,000 19,500...
Statement of Cash Flows (Indirect Method) Dair Company's income statement and comparative balance sheets follow. DAIR COMPANY Income Statement For Year Ended December 31,2011 Sales $ 700,000 Cost of goods sold $ 440,000 Wages and other operating expenses 95,000 Depreciation expense 21,000 Amortization expense 6,000 Interest expense 10,000 Income tax expense 36,000 Loss on bond retirement 5,000 613,000 Net income $87,000 DAIR COMPANY Balance Sheets Dec. 31, 2011 Dec. 31, 2010 Assets Cash $ 22,000 $ 18,000 Accounts receivable 54,000...
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