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11. A corporation purchased and retired 5,000 shares of its $15 par common stock

ID: 2589427 • Letter: 1

Question

11.   A corporation purchased and retired 5,000 shares of its $15 par common stock, originally issued at par, for $35. Cash flows amounted to $_________

     12.   If a loss of $2,000 is incurred in selling (for cash) a fixed asset having a book value of $25,000, the total amount reported as a cash flow in Investing Activities is $_________

     13.   The $97,000 net income for the year included a charge of $8,000 for the amortization of a patent. Excluding the effect of other adjustments, the amount of net cash flows from operating activities is $_________.

     14.   A corporation issued $2,000,000 of bonds payable at 104. Cash
flow was $________

     15.   25,000 shares of $10 par common stock were issued at $16. The total amount reported in the cash flows from financing activities section of the statement of cash flows is $________

11.   A corporation purchased and retired 5,000 shares of its $15 par common stock, originally issued at par, for $35. Cash flows amounted to $_________

     12.   If a loss of $2,000 is incurred in selling (for cash) a fixed asset having a book value of $25,000, the total amount reported as a cash flow in Investing Activities is $_________

     13.   The $97,000 net income for the year included a charge of $8,000 for the amortization of a patent. Excluding the effect of other adjustments, the amount of net cash flows from operating activities is $_________.

     14.   A corporation issued $2,000,000 of bonds payable at 104. Cash
flow was $________

     15.   25,000 shares of $10 par common stock were issued at $16. The total amount reported in the cash flows from financing activities section of the statement of cash flows is $________

Explanation / Answer

the following are the calculations of cash flows: (nejgative cash flows are indicated with minus (-) sign).

question working cash flow 11 purchse of shares will result in cash out flow =>5,000 * $35 =>$175,000 (outflow) - $175,000 12 amount to be reported as investing activities = ($25,000 - 2,000)=>$23,000 (inflow) $23,000 13 net income + amortization of patent will be reported as net cash flow from operating activity (97,000 + 8,000) (inflow) $105,000 14 cash inflow = $2,000,000 *104% =>$2,080,000 (inflow) $2,080,000 15 25,000 * $16 =>$400,000 (inflow) $400,000
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