Homework answers / question archive / Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows: a

Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows: a

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Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows:

a. Purchase of investments    

b. Purchase of equipment      

c. Payment for selling expenses        

d. Collection of accounts receivable  

e. Cash received from customers       

f. Issuance of bonds payable

 

2.    Adjustments to net income—indirect method

Ripley Corporation's accumulated depreciation—furniture account increased by $6,750, while $2,660 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a loss of $4,390 from the sale of land.

Reconcile a net income of $106,850 to net cash flow from operating activities. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

 

Amount Descriptions

·      Amortization of patents         

·      Decrease in accounts receivable       

·      Depreciation  

·      Gain from sale of land           

·      Increase in accounts receivable         

·      Loss from sale of land

·      Net cash flow from operating activities        

 

3.    Changes in current operating assets and liabilities—indirect method

Zwilling Corporation's comparative balance sheet for current assets and liabilities was as follows:

           

Dec. 31, Year 2

           

Dec. 31, Year 1

Accounts receivable  $35,000          $39,500

Inventory       22,500 18,450

Accounts payable      18,500 16,300

Dividends payable     43,200 53,100

Adjust net income of $320,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.

 

Amount Descriptions

·      Cash paid for dividends         

·      Decrease in accounts payable

·      Decrease in accounts receivable       

·      Decrease in dividends payable          

·      Decrease in inventory

·      Increase in accounts payable 

·      Increase in accounts receivable         

·      Increase in dividends payable

·      Increase in inventory 

·      Net cash flow from operating activities        

 

 

4.    Changes in current operating assets and liabilities—indirect method

Zwilling Corporation's comparative balance sheet for current assets and liabilities was as follows:

           

Dec. 31, Year 2

           

Dec. 31, Year 1

Accounts receivable  $26,140          $31,790

Inventory       17,310 15,380

Accounts payable      16,750 14,210

Dividends payable     47,070 51,830

Adjust net income of $201,050 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.

 

Amount Descriptions

·      Cash paid for dividends         

·      Decrease in accounts payable

·      Decrease in accounts receivable       

·      Decrease in dividends payable          

·      Decrease in inventory

·      Increase in accounts payable 

·      Increase in accounts receivable         

·      Increase in dividends payable

·      Increase in inventory 

·      Net cash flow from operating activities        

 

5.    Cash Flows from Operating Activities—Indirect Method

Staley Inc. reported the following data:

Net income    $363,500

Depreciation expense 60,900

Loss on disposal of equipment          20,100

Increase in accounts receivable         21,900

Increase in accounts payable 10,500

 

Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Staley Inc.

Statement of Cash Flows (partial)

Cash flows from operating activities:           

           

Adjustments to reconcile net income to net cash flow from operating activities:               

                       

                       

Changes in current operating assets and liabilities:              

                       

                       

Net cash flow from operating activities

 

 

6.    Cash Flows from Operating Activities—Indirect Method

 

Staley Inc. reported the following data:

Net income    $280,000

Depreciation expense 48,000

Loss on disposal of equipment          19,520

Increase in accounts receivable         17,280

Increase in accounts payable 8,960

 

Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Staley Inc.

Statement of Cash Flows (partial)

Cash flows from operating activities:           

 

Adjustments to reconcile net income to net cash flow from operating activities:               

                       

                       

Changes in current operating assets and liabilities:              

                       

                       

Net cash flow from operating activities