Classifying cash flows-cash from operating activities

Assignment Help Financial Accounting

Reference no: EM13792354

Classifying Cash Flows

The company provided the following information:

a. Cash sales for the year were $50,000; sales on account totalled $60,000

b. Cost of goods sold was $55,000

c. All inventory is purchased on account

d. Depreciation on building was $31,000 for the year

e. Depreciation on equipment was $2,000

f. Cash collections of accounts receivable were $38,000

g. Cash payments on accounts payable for inventory equaled $39,000

h. Rent expense paid in cash was $11,000

i. 20,000 shares of common stock were issued for $240,000 in cash

j. Land valued at $106,000 was acquired in exchange for signing a mortgage note payable

k. Equipment was purchased for cash at a cost of $84,000

l. Dividends of $46,000 were declared but not yet paid

m. $15,000 of dividends that had been declared the previous year were paid in cash

n. Interest totalling $16,000 was paid in cash during the year

o. A machine used on the assembly line was sold for $12,000 in cash. The machine had a book value of $7,000

p. On January 1, the company entered into an operating lease to secure the use of a building having a cash price of $200,000. The first lease payment of $19,000 in cash was made on January 1.

1. Compute cash from operating activities.

2. Compute cash from investing activities.

3. Compute cash from financing activities.

Reference no: EM13792354

Questions Cloud

Why is the business location important : Why is the business location important? Explain why Forecasting and Capacity Planning are essential in all businesses.

Draft the income tax expense section of the income statement : Prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for 2015. (1-6 above) Draft the income tax expense section of the income statement, beginning with Income before income taxes.

Responsible for the manufacturing-marketing departments : 1. Which of these managers are responsible for the manufacturing and marketing departments that make or sell the product or service?

Assignment on leadership approach : Leadership Approach

Classifying cash flows-cash from operating activities : Classifying Cash Flows- Compute cash from operating activities. Compute cash from investing activities. Compute cash from financing activities.

Define the meaning of foreign exchange : You need to order US $100,000 reams of paper from China to complete an order from an important commercial customer in 30 days. The current rate of exchange is USD/CNY 6.5766. Ignoring other transaction expenses associated with the order, how many ..

Compute the degree of operating leverage : Compute the degree of operating leverage to two decimal places. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from an 8% increase in sales. Prove your answer by preparing a new contr..

Monique leroux-leading change at desjardins : There are a number of different types of OD interventions. Some look at making changes at very specific aspects of the organizations and others look at changes that will be very encompassing of the entire organization.

Write a paper about the personal branding philosophy : Write a paper about The personal branding philosophy.

User Account

All Pages