Transaction be reported on the statement of cash flows

Assignment Help Business Economics

Reference no: EM13852052

ABC Company acquired some land (independently appraised at $12,000) and paid for it by issuing 1,000 shares of its common stock (par $10 per share; no market price was quoted). How should this transaction be reported on the Statement of Cash Flows (SCF)?

Question 1 option:

Reported $10,000 as a noncash investing and financing activity on the SCF.

Report the $12,000 as an inflow of cash on the SCF.

Report the $12,000 as a non cash activity

Reference no: EM13852052

Questions Cloud

One-half of the money in college fun for their child : A family that won a $100,000 prize on America’s Funniest Home Videos decided to put one-half of the money in a college fun for their child who was responsible for the prize. If the fund earned interest at 6% per year, how much was in the account 14 y..

Based on contracts the firm has recently won : A bright OU student plans to win first prize in the Ohio University Scripps Innovation Challenge that began Jan 17 and ends March 13. He will invest his $10,000 winnings in a friend’s 5-year-old startup company and expects to gain 10% interest per ye..

Interest is compounded-number of year-long periods : If interest is compounded at 15% per year, how long (i.e., the number of year-long periods) will it take for $50,000 to accumulate to $66,125? Hint: you can check your work using the FV function in Excel with the annual payment set to zero, since we ..

What is the expected profit for barnes & noble? : How many books should Barnes & Noble order? What is their expected profit? How many books do they expect to sell at a discount?

Transaction be reported on the statement of cash flows : ABC Company acquired some land (independently appraised at $12,000) and paid for it by issuing 1,000 shares of its common stock (par $10 per share; no market price was quoted). How should this transaction be reported on the Statement of Cash Flows (S..

Cigarette tax at the persons current level of consumption : Suppose there is a bill to increase tax on cigarettes by $1 per pack coupled with an income tax cut of $500. Suppose a person smokes an average of 500 packs of cigarettes per year--- and would thus face a tax increase of about $500 per year from the ..

Draw the production possibility curve : Suppose Mike and Johnson produce two products- hamburgers and T-shirts. Mike produces 10 hamburgers or 3 T-shirts a day and Johnson produces 7 hamburgers or 4 T-shirts. Assuming they can devote time in making either hamburgers or T-shirts. Draw the p..

Economic growth-high employment and price stability : Important policy objectives of the federal government include economic growth, high employment, price stability, and a balance in international transactions. The achievement of these objectives is the responsibility of monetary policy, fiscal policy,..

Calculate the firms profit : A perfectly competitive firm sells 50,000 units of knives at a price of $3. The firm's average cost at 50,000 units is $2.75. Calculate the firm's profit. Please verify answer twice before sending back to me the steps. I want to make sure I have the ..

User Account

All Pages