Compute the amount Stansfield should report as net cash

Assignment Help Financial Accounting

Reference no: EM132405542

Assignment - Statement of Cash Flows Questions

Q1. Wainwright Corporation had the following activities in 2015.

1. Sale of land $180,000.

2. Purchase of inventory $845,000.

3. Purchase of treasury shares $72,000.

4. Purchase of equipment $415,000.

5. Issuance of ordinary shares $320,000.

6. Purchase of investments-equity $59,000.

Compute the amount Wainwright should report as net cash provided (used) by investing activities in its statement of cash flows.

Q2. Stansfield Corporation had the following activities in 2015.

1. Payment of accounts payable €770,000.

2. Issuance of ordinary shares €250,000.

3. Payment of dividends €350,000.

4. Collection of note receivable €100,000.

5. Issuance of bonds payable €510,000.

6. Purchase of treasury shares €46,000.

Compute the amount Stansfield should report as net cash provided (used) by financing activities in its 2015 statement of cash flows.

Q3. Novak Corporation is preparing its 2015 statement of cash flows, using the indirect method. The following is a list of items that may affect the statement. Using the code letters provided, indicate how each item will affect Novak's 2015 statement of cash flows.

Code Letter	Effect
A	Added to net income in the operating section
D	Deducted from net income in the operating section
R-I	Cash receipt in investing section
P-I	Cash payment in investing section
R-F	Cash receipt in financing section
P-F	Cash payment in financing section
N	Non-cash investing and/or financing activity in notes

Items -

(a) Purchase of land and building.

(b) Decrease in accounts receivable.

(d) Depreciation expense.

(e) Sale of land at book value.

(f) Sale of land at a gain.

(g) Payment of dividends.

(h) Increase in accounts receivable.

(i) Purchase of an equity investment.

(j) Increase in accounts payable.

(k) Decrease in accounts payable.

(l) Loan from bank by signing note.

(m) Purchase of equipment using a note.

(n) Increase in inventory.

(o) Issuance of bonds.

(p) Retirement of bonds payable.

(q) Sale of equipment at a loss.

(r) Purchase of treasury shares.

Q4. Bloom Corporation had the following 2015 income statement.

Sales revenue €200,000

Cost of goods sold 120,000

Gross profit 80,000

Operating expenses (includes depreciation of €21,000) 50,000

Net income € 30,000

The following accounts increased during 2015: accounts receivable €12,000, inventory €11,000, and accounts payable €13,000. Prepare the cash flows from operating activities section of Bloom's 2015 statement of cash flows using the direct method.

Q5. Use the information from Q4 for Bloom Corporation. Prepare the cash flows from operating activities section of Bloom's 2015 statement of cash flows using the indirect method.

Q6. At January 1, 2015, Eikenberry Inc. had accounts receivable of $72,000. At December 31, 2015, accounts receivable is $54,000. Sales for 2015 total $420,000. Compute Eikenberry's 2015 cash receipts from customers.

Q7. Moxley Corporation had January 1 and December 31 balances as follows.

	1/1/15	12/31/15
Inventory	€95,000	€113,000
Accounts payable	61,000	69,000

For 2015, cost of goods sold was €500,000. Compute Moxley's 2015 cash payments to suppliers.

Q8. In 2015, Elbert Corporation had net cash provided by operating activities of £531,000, net cash used by investing activities of £963,000, and net cash provided by financing activities of £585,000. At January 1, 2015, the cash balance was £333,000. Compute December 31, 2015, cash.

Q9. Loveless Corporation had the following 2015 income statement.

Revenues	$100,000
Expenses	60,000
	$40,000

In 2015, Loveless had the following activity in selected accounts.

Accounts Receivable
1/1/15	20,000
Revenue	100,000	1,000	Write-offs
		90,000	Collections
12/31/15	29,000

Allowance for Doubtful Accounts
		1,200	1/1/15
Write-offs	1,000	1,840	Bad debt expense
		2,040	12/31/15

Prepare Loveless's cash flows from operating activities section of the statement of cash flows using (a) the direct method and (b) the indirect method.

Q10. Hendrickson Corporation reported net income of $50,000 in 2015. Depreciation expense was $17,000. The following working capital accounts changed.

Accounts receivable - $11,000 increase

Non-trading equity investment - 16,000 increase

Inventory - 7,400 increase

Non-trade notes payable - 15,000 decrease

Accounts payable - 12,300 increase

Compute net cash provided by operating activities.

Q11. In 2015, Shaw Corporation reported a net loss of €70,000. Shaw's only net income adjustments were depreciation expense €81,000, and increase in accounts receivable €8,100. Compute Shaw's net cash provided (used) by operating activities.

Q12. In 2015, Leppard Inc. issued 1,000 ordinary shares of $10 par value for land worth $40,000.

(a) Prepare Leppard's journal entry to record the transaction.

(b) Indicate the effect the transaction has on cash.

Q13. Indicate in general journal form how the items below would be entered in a worksheet for the preparation of the statement of cash flows.

(a) Net income is ¥317,000,000.

(b) Cash dividends declared and paid totaled ¥120,000,000.

(d) Equipment that originally cost ¥40,000,000 and had accumulated depreciation of ¥32,000,000 was sold for ¥10,000,000.

Reference no: EM132405542

Questions Cloud

Describe the compensation packages for employees : You have recently been promoted and are the company's new Human Resources Manager! You have offices in several countries, so how would you evaluate different.

Would you remove these duplicates or not : A decision tree can contain some duplicates, i.e. there are at least two sequences of branches that are indicating the same outcome.

How are employees motivated in the organization : How are employees motivated in the organization? Some of the motivation techniques used may be encompassed in pay and benefits

What does the organization do : What does the organization do? What line of business are they in? What products/services do they offer?

Compute the amount Stansfield should report as net cash : Compute the amount Stansfield should report as net cash provided (used) by financing activities in its 2015 statement of cash flows

You work as a communication specialist at warby parker : You work as a communication specialist at Warby Parker, reporting to co-CEO David Gilboa. Using the skills you've been practicing in this course

What is the role of healthcare marketing : Today, healthcare marketing is a pervasive reality. What is the role of healthcare marketing and social responsibility in health care today? In what ways can

Manager work to resolve conflict or anxiety about change : How can a manager work to resolve conflict or anxiety about change? Are there any ways you can proactively help avoid the potential conflicts associated

Explain what obligations the us government has : Explain what obligations the U.S. government has towards its citizens and how these obligations impact individual and group rights.

User Account

All Pages