ACC Final Chapter 12

Assume that the Quinn Corporation uses the indirect method to depict cash flows. Indicate where, if at all, interest paid on a note would be reported on the statement of cash flows

Operating activities section

When equipment is sold for cash, the amount received is reflected as a cash

inflow in the investing section

During 2022, Metlock, Inc. sold equipment with a book value of $105600 for proceeds of $127600. The company purchased new equipment for $281600 by signing a long-term note payable. No other transactions impacted long-term asset accounts during 2022. The investing section of the statement of cash flows will report

net cash inflows of $127600

Sheridan Company reported a net loss of $12600 for the year ended December 31, 2022. During the year, accounts receivable decreased $6300, inventory increased $10080, accounts payable increased by $12600, and depreciation expense of $7560 was recorded. During 2022, operating activities

provided net cash of $3780

Kingbird, Inc. issued 22800 shares of $1 par common stock for $40 per share during 2022. The company paid dividends of $55000 and issued long-term notes payable of $502000 during the year. What amount of cash flows from financing activities will be reported on the statement of cash flows?

$1359000 net cash inflow

In Metlock, Inc., land decreased $245700 because of a cash sale for $245700, the equipment account increased $81900 as a result of a cash purchase, and bonds payable increased $273000 from issuance for cash at face value. The net cash provided by investing activities is

$163800

Land costing $135000 was sold for $383400 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

$383400

The net income reported on the income statement for the current year was $298000. Depreciation was $64000. Accounts receivable and inventories decreased by $6000 and $19000, respectively. Prepaid expenses and accounts payable increased, respectively, by $600 and $17000. Investments were sold at a loss of $22500. How much cash was provided by operating activities?

$425900

In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is

deducted from net income

Which of the following changes in retained earnings during a period will be reported in the financing activities section of the statement of cash flows? 1. Declaration and payment of a cash dividend during the period. 2. Net income for the period

1

Vaughn Manufacturing reported net income of $316000 for the year. During the year, accounts receivable increased by $23000, accounts payable decreased by $10000 and depreciation expense of $49000 was recorded. Net cash provided by operating activities for the year is

332000

Assume that the Zahler Corporation uses the indirect method to depict cash flows. Indicate where, if at all, treasury stock purchased with cash would be classified on the statement of cash flows

Financing activities section

The acquisition of land by issuing common stock is

a noncash transaction that is not reported in the body of a statement of cash flows

In calculating cash flows from operating activities using the indirect method, a loss on the sale of equipment is

added to net income

If a company has both an inflow and outflow of cash related to property, plant, and equipment, the ______________ in the investing activities section.

cash inflow and cash outflow must be reported separately