Accounting 202

Accounts receivable arising from sales to customers amounted to $40,000 and $55,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $180,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

180,000+40,000-55,000=165,000

Issued 500 shares of preferred stock for 45000

financing activity

sale of building at book value

investing activity

sold land and a building for 250,000

investing ativity

Accounts payable are paid in cash

operating activity

Interest receivable on a short-term note receivable is collected

operating activity

Paid utilities expense

operating activity

Receipt of interest on notes receivable

operating activity

payment of interest on notes payable

operating activity

100 shares of XYZ common stocks are purchased for cash

Investing activity

Land is sold for cash at book vaule

Investing activity

The net income reported on the income statement for the current year was $220,000. Depreciation recorded on plant assets was $35,000. Accounts receivable and inventories increased by $2,000 and $8,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $12,000 respectively. How much cash was provided by operating activities?

$220,000+$35,000- $2,000-$8,000- $2,000 -$12,000=$235,000

The net income reported on the income statement for the current year was $245,000. Depreciation was $40,000. Account receivable and inventories decreased by $12,000 and $35,000, respectively. Prepaid expenses and accounts payable increased, respectively, by $1,000 and $8,000. How much cash was provided by operating activities?

$245,000+$40,000+ $12,000+$35,000- $1,000+$8,000= $339,000

Accounts receivable arising form sales to customers amounted to 86,000$ and 77,000$ at the beginning and end of the year respectively income reported on the income statement for the year was 290,000$ exclusive of the effect of other adjustments, the cash flows from operating activites to be reported on the statement of cash flows is

$290,000+($86,000 - $77,000)=$299,000

Bonds payable are issued for cash at a discount

Financing Activity

Common stock is sold for cash above par vaule

Financing Activity

Cash dividends on common stock are eclared and paid

Financing activity

Issued 200,000 of bonds payable

Financing activity

payment of dividends

Financing activity

Bonds payable are converted into common stock

Noncash activity

Equipment is purchased by signing a 3-year, 10% note payable

Noncash activity

Merchandise is sold to customers for cash

Operating activity