5Required informationExercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3[The following information applies to the questions displayed below.]The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-endbalance sheets:Account TitleInvestment securitiesMachineryLandYear 2$ 103,400521,300145, 100Year 1$ 114,400425, 10091,800Other information drawn from the accounting records:1. Delsey incurred a $1,330 loss on the sale of investment securities during Year 2.2. Old machinery with a book value of $4,130 (cost of $25,010 minus accumulated depreciation of $20,880) was sold. Theincome statement showed a gain on the sale of machinery of $4,980,3. Delsey did not sell land during the year. Exercise 12-10A (Algo) Part ee. Prepare the investing activities section of the statement of cash flows.Note: Amounts to be deducted should be indicated with a minus sign.DELSEY COMPANYStatement of Cash Flows (Investing Activities)For the Year Ended December 31, Year 2Cash flows from investing activities:Net cash outflow from investing activities$0

A cash flow statement denotes total amount cash is inflows and cash outflows your business in a…

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e. Prepare the investing activities section of the statement of cash flows.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.24MCE

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! Required information Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3 [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Investment securities Machinery Land Exercise 12-10A (Algo) Part c Year 2 $ 102, 100 527,300 143,500 Other information drawn from the accounting records: 1. Delsey incurred a $1,300 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,070 (cost of $25,390 minus accumulated depreciation of $21,320) was sold. The income statement showed a gain on the sale of machinery of $4,220. 3. Delsey did not sell land during the year. Amount of cash flow Year 1 $ 112,700 427,100 98,000 c. Compute the amount of cash flow associated with the sale of machinery.
5 ! Required information Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3 [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Investment securities Machinery Land Exercise 12-10A (Algo) Part b Year 2 $ 102,100 527,300 143,500 Other information drawn from the accounting records: 1. Delsey incurred a $1,300 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,070 (cost of $25,390 minus accumulated depreciation of $21,320) was sold. The income statement showed a gain on the sale of machinery of $4,220. 3. Delsey did not sell land during the year. Year 1 $ 112,700 427,100 98,000 Cost of machinery purchased b. Compute the amount of cash flow associated with the purchase of machinery. Prev 4 5 6 7 - of 9 Next
5 Required information Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3 [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Investment securities. Machinery Land Exercise 12-10A (Algo) Part b Year 2 $ 102,100 527,300 143,500 Year 1 $ 112,700 Other information drawn from the accounting records: 1. Delsey incurred a $1,300 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,070 (cost of $25,390 minus accumulated depreciation of $21,320) was sold. The income statement showed a gain on the sale of machinery of $4,220. 3. Delsey did not sell land during the year. Cost of machinery purchased 427, 100 98,000 b. Compute the amount of cash flow associated with the purchase of machinery.
Required Information Exercise 12-10A (Algo) Determining cash flows from Investing activities LO 12-3 [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Investment securities Machinery Land Other Information drawn from the accounting records: Year 2 $ 104,300 524,400 143,300 1. Delsey Incurred a $1,210 loss on the sale of Investment securities during Year 2. 2. Old machinery with a book value of $4,860 (cost of $25.120 minus accumulated depreciation of $20,260) was sold. The Income statement showed a gain on the sale of machinery of $4,670. 3. Delsey did not sell land during the year. Exercise 12-10A (Algo) Part e e. Prepare the investing activities section of the statement of cash flows. Note: Amounts to be deducted should be indicated with a minus sign. DEL SEY COMPANY Statement of Cash Flows (Investing Activities) For the Year…
QUESTION 12 When using the indirect method to determine operating cash flows, how would the retirement of bonds payable at their maturity date be shown on the statement of cash flows? a. an investing activity b. not reported on the statement of cash flows c. a noncash investing and financing activity d. an operating activity e. a financing activity
Statement of Cash Flows—Direct Method applied to PR 16-1A The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 Assets Cash $ 251,860 $ 238,290 Accounts receivable (net) 92,610 84,960 Inventories 261,030 250,990 Investments 0 97,660 Land 133,790 0 Equipment 285,270 224,620 Accumulated depreciation-equipment (67,800) (60,500) Total assets $956,760 $836,020 Liabilities and Stockholders' Equity Accounts payable $ 172,940 $ 164,700 Accrued expenses payable 17,390 21,740 Dividends payable 9,400 7,500 Common stock, $1 par 51,100 39,290 Paid-in capital: Excess of issue price over par-common stock 194,400 113,700 Retained earnings 511,530 489,090 Total liabilities and stockholders’ equity $956,760 $836,020 The income statement for the year ended December 31, 20Y3, is as…
ces Exercise 12-1 (Algo) Indirect: Classifying Cash flows LO C1 Indicate where each item would appear on a statement of cash flows using the indirect method by placing an X in the appropriate column(s). Note: More than one column may be used. a. Purchased treasury stock with cash b. Inventory increased in the year c Issued bonds in return for cash d. Accounts payable decreased in the year e. Income taxes payable increased in the year f. Purchased land by issuing common stock g. Sold merchandise to customer for cash h. Purchased a building with cash i. Received a cash dividend from investment Statement of Cash Flows Operating Investing Financing Activities Activities Activities Dini # Noncash Investing & Financing. Activities Navt Not Reported on Statement or in Notes
Refer to the information for Cornett Company above. What amount should Cornett report on its statement of cash flows as net cash flows provided by investing activities? a. $(5,200) b. $55,200 c. $144,800 d. None of these
Statement of cash flowsindirect method The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as follows: Dec 31, 20Y2 Dec. 31, 20Y1 Assets Cash 300,600 337,800 Accounts receivable (net) 704,400 609,600 inventories 918,600 865,800 Prepaid expense 18,600 26,400 Land 990,000 1,386,000 Buildings 1,980,000 990,000 Accumulated depreciationbuildings (307,200) (366,000) Equipment 660,600 529,800 Accumulated depreciationequipment (133,200) (162,000) Total assets 5,042,400 4,217,400 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) 594,000 631,300 Income taxes payable 26,400 21,600 Bonds payable 330,000 0 Common stock, 20 par 320,000 180,000 Paid-in capital: Excess of issue price over parcommon stock 950,000 8 10,000 Retained earnings 2,822,000 2,574,600 Total liabilities and stockholders' equity 5,042,400 4,217,400 The noncurrrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flow s, using the indirect method of presenting cash flows from operating activities.
Classifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. AnswerOperatingInvestingFinancing AnswerAddSubtract 2. Repurchases of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 3. Purchases of property and equipment. AnswerOperatingInvestingFinancing AnswerAddSubtract 4. Sale of investments classified as long-term. AnswerOperatingInvestingFinancing AnswerAddSubtract 5. Proceeds from the issuance of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 6. Increase in prepaid expenses and other current assets. AnswerOperatingInvestingFinancing AnswerAddSubtract 7. Acquisition for cash of a competitor.…
MC Qu. 12-40 Which of the following would be... Which of the following would be classified as an operating activity on the statement of cash flows using the direct method? Multiple Cholce Cash dividends pald. Cash recelved from selling equlpment. Cash pald to retire bonds payable at maturity. Cash recelved from accounts recelvable collections. < Prev 30 of 30 Next Type here to search W Trop storm warning DELL
Problem 10-2 (IAA) Star Company provided the following data for the preparation of statement of cash flows for the current year: Cash balance, beginning Cash paid to purchase inventory Cash received from sale of trading securities Cash paid for interest on bank loan Cash paid to repay principal amount of bank loan Cash collected from customers Cash received from issuance of ordinary shares Cash paid for dividend Cash paid for income taxes Cash paid to purchase trading securities 1,500,000 7,800,000 2,500,000 450,000 1,000,000 10,000,000 1,200,000 2,000,000 1,350,000 1,000,000 1. What is the net cash provided by operating activities? a. 1,900,000 b. 2,900,000 c. 2,350,000 d. 400,000 2. What is the net cash used in financing activites? a. 3,000,000 b. 2,000,000 c. 1,800,000 d. 4,200,000 3. What is the cash balance at year-end? a. 3,400,000 b. 1,600,000 c. 1,400,000 d. 2,400,000