Ch 11 Intro To Financial Accounting
Borrowed 14,000, issued common stock of 11,000, and paid dividends of 16,000. What was net cash provided?
14,000 + 11,000 = 25,000 - 16,000 = 9,000 <- final answer.
operating expenses = 51,000. Owed 10,000 accured liabilities. At year end, accrued liabilities were 17,000.
51,000-17,000 = 34,000+10,000 = 44,000.
loss of disposal of equipment 1,000 equipment 1,000
operating
The three main categories of cash flows reported on a cash flow statement are
operating, investing, and financing.
a.r = 27,000 at beginning and 56,000 at end. Revenue for the year totaled 106,000.
106,00+27,000=133,000 - 56,000 = 77,000<- final answer
NI = 63,000, Dep. Exp. = 12,000 and all other expesnes. Current assets increased 11,000 and current liabilities decreased 13,000.
11,000+13,000 = 24,000 - 12,000 = 12,000; 63,000-12,000 = 51,000 <- final answer
Book Value =
Beg. Balance + Acquisitions - Dep Expanse - End Balance
Which item does not appear on a statement of cash flows prepared by the indirect method?
Collections from customers
insurance of common stock for cash
F+
insurance of long-term note payable in exchange for cash
F+
payment of cash dividend
F-
payment of long-term debt
F-
purchase of treausry stock
F-
Cash Sale Of Land
I+
Equipment debit 13,000. Cash Credit 13,000.
Investing
acquisition of building by issuance of common stock
NIF
acquisition of building by issuance of notes payable
NIF
decrease in accounts receiveable
O+
depreciation expense of equipment
O+
increase in accounts payable
O+
loss on sale of land
O+
indirect method:
arrives at the same number of the directed method but starts with net income and adjusts it.
investing activities:
by or sell property, plant and equipment, buy or sell investments.
net income:
changes in current assets, changes in current liabilities, non-cash revenues, non-cash expenses.
Operating activities are most closely related to:
current assets and current liabilities.
bonds payable 500,000 debit cash 500,000
finance
cash 80,000 treasury stock 80,000
financing
dividends payable 15,000 cash 15,000
financing
treasury stock 10,000 cash 10,000
financing
cash debit 7,5000 long term investment 7,500
investing
land 83,5000 cash 83,500
investing
direct method:
looks like an income statement
Which item appears on a statement of cash flows prepared by the indirect method?
net income
building 1800,,000 Note payables, long-term 1800,000
no effect
decrease in inventory
o+
net income
o+
increase if accrued liabilities
o-
increase in prepaid expenses
o-
cash 65,000 sales revenue 65,000
operating
dep. expense 9,200 acc. dep 9,200
operating
Financing activities are most closely related to
long-term liabilities and stockholders' equity.
