Question

55. Servo industries net income was $300,000. Given the account information De the net cash flows from operating activities for Servo Industries? the account information below, what is Decrease in Accounts Receivable Decrease in Salaries Payable Decrease in Inventory Depreciation Expense Increase in Interest Payable $ 50,000 $ 75,000 $ 20,000 $ 35,000 $ 7,000 A) $487,000 B) $323,000. C) $337,000 D) $237,000. 56. Listed below are several transactions. For each transaction, indicate by letter whether the cash effect of each transaction is reported in a statement of cash flows as an operating (O), investing (), financing (F), or noncash (NC) activity. Also, indicate whether the transaction is a cash inflow (CI), cash outflow (CO), or no effect on cash (NE). The first answer is provided as an example. Type of Activity Cash Inflow or Outflow Transaction CI 1. Issuance of common stock 2. Issuance of bonds 3. Investment in bonds 4. Collection of a note receivable 5. Sale of inventory 6. Repayment of note payable 7. Payment of a cash dividend 8. Purchase of land for cash 9. Reissue of treasury stock 10. Collection of an account receivable 11. Issuance of a note payable 12. Payment of employee salaries 13. Sale of equipment for a note receivable 14. Payment of interest on bonds payable 15. Sale of a building

Answer 1

Tuesday 09 300000 35000 335000 Net Income Add depreciation Operating Expense change in working capital - Add! Decrease in Renewable Decrease in inventory - Increase in interest less: Decrease in salary Net cash flow from c) 1 33 70 operating 30000 20000 7000 (75000) 337000 Ophon 01 02 CI 03 CI co 04 CI CI co co co C2 GT CI TonorHT TOOH Transaction 1. Inuance of stock 2.) Invanu of bonds 3. Invest in bonds 4) Covention of relicable 5.) sale of Inventory 6.) Repayment of Note 7. Payment of Cash dividing 8.) Purchase of land 9.) Reissue of treasury stock to 10.) Countion of Alo reciewable 1. Inue of Do te payable 12. Salary Payment 13.) sale of equipment for - note rei wable 14. Payment of Interest on bonds Payable 15. Sale of buildin ening NE ری - T 1 F 2 F 9 S 10 S 11 M 12 T 13 W 14 T 15 F 16 S 17 S 18 M 19 T W T 20 21 22 F 23 S 24 S 25 M 26 T W 27 28 T 29 F 30 S 31 S S M T W T 3 4 5 6 7 8 Scanned_with_ CamScanner