intermediate accounting

22 Jul intermediate accounting

26. (3 points) the following items may be reflected in a company s statement of cash flows. for each item, indicate which, if any, of the 3 sections of the statement of cash flows the item would be reflected in. Assume the statement is prepared using the indirect method.

1. issuing stock in exchange for $ 500,000.

2. using cash to purchase a fixed asset

3.     using cash to buy back our own company stock.

4. selling a fixed asset for more than book value

5. borrowing money.

27. (4 points) Windsor manufacturing company engaged in the following cash transaction during 2016

purchase of treasury stock   $400000

purchase machinery and equipment $250000

sale of land  800000

payment of cash dividend 625000

retirement of bonds 100000

issuance of common stock 500000

compute the net cash provided by (used in) financing activities

 

28. (3 points) for the year ended 12-31-15 Sather reported net income of $750000. during 2015, sather sold a fixed asset for $60000. the book value of this asset at the time of sale was $25000. other information about sather for 2015 follows

increase in accounts receivable $18000

increase in prepaid expense $14000

decrease in accrued wages payable  $22000

decrease in unearned revenues $11000

depreciation expense 45000

what was sather’s net cash provided by (used in) operating activities  for 2015? be sure to label your answer as cash provided by operating activities or cash used in operating activities

 

29. (6 points) diane’s balance sheet as of december 31, 2014 and 2013 are presented bellow

 

2014                   2013

cash                                                                  55000               40000

accounts receivable                                         20000               35000

prepaid expense                                              45000               20000

property plant  and equipment                           100000           60000

accumulated depreciation                                  (35000)      (25000)

total asset                                                            185000       130000

accrued wage payable                                        10000        15000

unearned revenues                                             25000         15000

dividend payable                                               5000                   00

long term debt                                                 15000                25000

common stock                                                      25000          20000

additional paid in capital                                  30000                  20000

retained earnings                                             75000                35000

total liabilities                                                185000                130000

selected other information

1. during 2014, diane reported net income of 60000

2. during 2014, diane  both borrowed on a long term basis and paid back some long term debt, during 2014, diane paid back 12500 of principle

3. during 2014 , diane both bought and sold some property plant and equipment. a machine diane sold during 2014 originally cost her 10000. diane sold the PP&E for 5000. at the time of the sale, the PP&E had accumulated depreciation of 4000

4. during 2014, diane issued additional common stock

5. during 2014, diane did not enter into any non cash investing or financing activities

prepare Diane’s statement of cash flows (in good form ) fir the year ended December 31, 2014. December 31,2014. Diane uses the indirect method.