acc ch 12

Zoum Corporation had the following transactions during 2017: 1. Issued $250000 of par value common stock for cash. 2. Recorded and paid wages expense of $120000. 3. Acquired land by issuing common stock of par value $100000. 4. Declared and paid a cash dividend of $20000. 5. Sold a long-term investment (cost $6000) for cash of $6000. 6. Recorded cash sales of $800000. 7. Bought inventory for cash of $320000. 8. Acquired an investment in Zynga stock for cash of $42000. 9. Converted bonds payable to common stock in the amount of $1000000. 10. Repaid a 6-year note payable in the amount of $440000. What is the net cash provided by financing activities? (Cash. st. - iss. div. paid. - N/P. paid)

$(210000).

In Jackson Jones Company, land decreased $270000 because of a cash sale for $270000, the equipment account increased $90000 as a result of a cash purchase, and Bonds Payable increased $300000 from issuance for cash at face value. The net cash provided by investing activities is (Land dec. - equip. inc.)

$180000.

Zoum Corporation had the following transactions during 2017: 1. Issued $250000 of par value common stock for cash. 2. Recorded and paid wages expense of $120000. 3. Acquired land by issuing common stock of par value $100000. 4. Declared and paid a cash dividend of $20000. 5. Sold a long-term investment (cost $6000) for cash of $6000. 6. Recorded cash sales of $800000. 7. Bought inventory for cash of $320000. 8. Acquired an investment in Zynga stock for cash of $42000. 9. Converted bonds payable to common stock in the amount of $1000000. 10. Repaid a 6-year note payable in the amount of $440000. What is the net cash provided by operating activities? (Cash Sal. - inv. pur.- wag. pd.)

$360000.

McLaughlin Company issued common stock for proceeds of $558000 during 2017. The company paid dividends of $99000 and issued a long-term note payable for $375000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $81000. The financing section of the statement of cash flows will report net cash inflows of (Com. st. proc. - div. paid - trea. st. pur.)

$378000.

During 2017, Ecuyer Industries reported cash provided by operations of $794000, cash used in investing of $686000, and cash used in financing of $190000. In addition, cash spent for fixed assets during the period was $276000. Average current liabilities were $650000 and average total liabilities were $1716000. No dividends were paid. Based on this information, what was Ecuyer's free cash flow? Cash from oper. - fix. asset pur.)

$518000.

Zoum Corporation had the following transactions during 2017: 1. Issued $250000 of par value common stock for cash. 2. Recorded and paid wages expense of $120000. 3. Acquired land by issuing common stock of par value $100000. 4. Declared and paid a cash dividend of $20000. 5. Sold a long-term investment (cost $6000) for cash of $6000. 6. Recorded cash sales of $800000. 7. Bought inventory for cash of $320000. 8. Acquired an investment in Zynga stock for cash of $42000. 9. Converted bonds payable to common stock in the amount of $1000000. 10. Repaid a 6-year note payable in the amount of $440000. What is the net cash provided by investing activities? Invest. sale - invest. pur.)

($36000).

Which one of the following items is not necessary in preparing a statement of cash flows?

Determine the cash in each of the bank accounts.

Assume that the Quinn Corporation uses the indirect method to depict cash flows. Indicate where, if at all, income taxes paid would be classified on the statement of cash flows.

Operating activities section.

Preferred stock issued in exchange for land would be reported in the statement of cash flows in

a separate schedule or note to the financial statements.

The information to prepare the statement of cash flows comes from all of the following sources except

adjusted trial balance.

Cash from investing becomes less positive and cash from financing becomes more negative during the

decline phase.

All of the following adjustments would be deducted in determining net cash provided by operating activities except a(n)

depreciation expense.

If accounts payable have increased during a period

expenses on an accrual basis are greater than expenses on a cash basis.

Using the indirect method, patent amortization expense for the period

is added to net income.

The statement of cash flows

is used to assess an entity's ability to pay dividends and meet obligations.

Cash generated from operations exceeds investing needs, and the company can begin retiring debt during the

maturity phase.

The indirect and direct methods of preparing the statement of cash flows are identical except for the

operating activities section.

Cash receipts from interest and dividends are classified as

operating activities.

Catalina Company reported a net loss of $15000 for the year ended December 31, 2017. During the year, accounts receivable decreased $7500, inventory increased $12000, accounts payable increased by $15000, and depreciation expense of $9000 was recorded. During 2017, operating activities ((Net loss) + A/R dec. − inv. inc. + A/P inc.+ dep. exp.)

provided net cash of $4500.