2.) On January 1, 2011, Webber Company had a balance of $278,000 in its Land acc
ID: 2450083 • Letter: 2
Question
2.)
On January 1, 2011, Webber Company had a balance of $278,000 in its Land account. During 2011, Webber sold land that had cost $94,000 for $120,000 cash. The balance in the Land account on December 31, 2011, was $300,000.
Determine the cash outflow for the purchase of land during 2011. (Input the amount as positive value. Omit the "$" sign in your response.)
Prepare the investing activities section of the 2011 statement of cash flows. (Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)
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The following accounts and corresponding balances were drawn from Winston Company’s 2012 and 2011 year-end balance sheets.
Winston incurred a $2,000 loss on the sale of investment securities during 2012.
Old machinery with a book value of $5,000 (cost of $25,000 minus accumulated depreciation of $20,000) was sold. The income statement showed a gain on the sale of machinery of $4,000.
3.
value:
1.00 points
Required information
Compute the amount of cash flow associated with the sale of investment securities. (Omit the "$" sign in your response.)
References
eBook & Resources
WorksheetDifficulty: MediumLearning Objective: 12-03 Prepare the investing activities section of a statement of cash flows.
Check my work
4.
value:
1.00 points
Required information
Compute the amount of cash flow associated with the purchase of machinery. (Input the amount as positive value. Omit the "$" sign in your response.)
References
eBook & Resources
WorksheetDifficulty: MediumLearning Objective: 12-03 Prepare the investing activities section of a statement of cash flows.
Check my work
5.
value:
1.00 points
Required information
Compute the amount of cash flow associated with the sale of machinery. (Omit the "$" sign in your response.)
References
eBook & Resources
WorksheetDifficulty: MediumLearning Objective: 12-03 Prepare the investing activities section of a statement of cash flows.
Check my work
6.
value:
1.00 points
Required information
Compute the amount of cash flow associated with the purchase of land. (Input the amount as positive value. Omit the "$" sign in your response.)
References
eBook & Resources
WorksheetDifficulty: MediumLearning Objective: 12-03 Prepare the investing activities section of a statement of cash flows.
Check my work
7.
value:
1.00 points
Required information
Prepare the investing activities section of the statement of cash flows. (Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)
The following accounts and corresponding balances were drawn from Berry Company’s 2012 and 2011 year-end balance sheets.
Compute the amount of cash flow associated with the repayment of bond liabilities. (Input the amount as positive value. Omit the "$" sign in your response.)
Compute the amount of cash flow associated with the issue of common stock. (Omit the "$" sign in your response.)
Prepare the financing activities section of the statement of cash flows. (Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)
For each item, indicate whether it would be used in the computation of net cash flows from operating, investing, or financing activities. Also, indicate whether the item would be added or subtracted when determining the net cash flow from operating, investing, or financing activities. Assume the indirect method is used to prepare the operating activities section of the statement of cash flows. The first item has been completed as an example.
Chang Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Chang’s 2012 and 2011 year-end balance sheets.Explanation / Answer
Answer:1) Cash flow from operating Activities:
Answer:2) (a) 278,000 - 94,000 + X = 300,000
X=116000
(b)
Answer:3 (a) Compute the amount of cash flow associated with the sale of machinery.
Deduct gain on sale of machinery $4,000 from net income under Operating activities
Cash inflow being proceeds from sale of machinery $9,000 under Investing activities
Answer:3(b) Compute the amount of cash flow associated with the purchase of machinery
Cash outflow re purchase of machinery $120,000 (425,000 - 25,000 - 520,000) under Investing activities
Answer:3 (c ) Compute the amount of cash flow associated with the sale of investment securities
Add loss on sale of investment securities $2,000 to net income under Operating activities
Cash inflow being proceeds from sale of investment securities $8,000 under Investing activities
Answer:3(d) Compute the amount of cash flow associated with the purchase of land.
=140000-90000=$50000
Answer:3(e) Prepare the investing activities section of the statement of cash flows.
Answer:4 (a) Compute the amount of cash flow associated with the repayment of bond liabilities.
=300000-210000=90000
(b) Compute the amount of cash flow associated with the issue of common stock.
=370000-275000=95000
(c)
Answer:5)
Particulars Amount ($) Cash flow from operating activities: Net income 52000 AdJustment: Depreciation expense 2500 Gain on sale of equipment -1200 Loss on sale of land 900 Dec in Accounts receivable 4000 Inc in prepaid rent -300 Inc in interest receivable -200 Dec in accounts payable -1300 Inc in salaries payable 400 Dec in unearned revenue -2000 Net Cash inflow from operating activities: 54800Related Questions
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