can someone please explain the steps? HAPTER 13 NAME 0-MINUTE QUIZ B SECTION Use

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can someone please explain the steps?

HAPTER 13 NAME 0-MINUTE QUIZ B SECTION Use the following information for questions 1 through 4 Lester Corporation's statement of cash flows for 2010 shows the following investing activities: Proceeds from sale of equitysecuritics $ 160,000 (250,000) 125.000 Purchase of land Proceeds from sale of land Net cash from investing activities.. tatement for 2010 includes the following Loss on sale of equity securities.. Gain on disposal of land.. 1 Refer to the above data. The cost of the land sold during 2010 was 65,000 Cost e a' $65,000. b $125,000. -c-$190,000. ( $60,000 2 Refer to the above data. The cost (book value) of the equity securities sold during 2010 was: $207,000. b $113,000. $160,000. d Some other amount. c 009 showed Land of the basis of the data presented above, compute the amount to be reported for 3 Referta the above data. Lester's balance sheet at the end of 2 100 and in Lester Corperation's bal c-> $290,000 d Some other amount. +2Sc 250cc 50 ,00 Refer to the above data. Lester's balance sheet at the end of 2009 showed Investment in Equity Securities at 3250,000. On the basis of the data presented above, compute the amount to be reported for Investment in Equity Securities in Lester Corporation's balance 4 sheet at 31 December 2010 a $43,000. b $110,000. c $137,000. d $253,000 Which of the following correctly describes a difference between the direct method and the indirect method of computing operating cash flow? 2 too . 5 a The direct method is used when accounting records are kept on a cash basis; the accrual basis. sed when accounting records are maintained on an The direct method may be used only when a company maintains special journals for cash receipts and cash disbursements; the indirect method is used in all other situations b oth the direct and the indirect methods result in the same net cash from operating activities, but the format of this section of the statement of cash flows is different under the alternative methods d The direct method is used when all accounting records and bank statements are available; the indirect method is used when some accounting records or documents are missing or have been destroyed.

Explanation / Answer

1 Cost of land sold=Proceeds from sale of land-Gain on dispoal of land=125000-65000=60000 2 Cost of equity securities sold=Proceeds from sale of equity securities+loss on sale of equity securities=160000+47000=207000 3 Land Beginning balance 100000 Add: Purchase of land 250000 350000 Less:Cost of land sold 60000 Ending balance 290000 4 Investment in equity securities Beginning balance 250000 Less:Cost of equity securities sold 207000 Ending balance 43000 5 Answer is C.

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