Question

In: Accounting

During 2019, Xylo Company sells common stock for $260,000; retires a bond at a cost of...

  1. During 2019, Xylo Company sells common stock for $260,000; retires a bond at a cost of $241,000; and pays dividends to shareholders of $29,550. The impact of these activities on the statement of cash flows is
  1. $260,000 increase in the investing section
  2. $10,550 increase in the financing section
  3. $10,550 decrease in the financing section
  4. $19,000 increase in the investing activities section
  1. Common stock issued in exchange for land would be reported in the statement of cash flows in
  1. the cash flows from financing activities section
  2. the cash flows from investing activities section
  3. a separate schedule
  4. the cash flows from operating activities section
  1. Which of the following represents an inflow of cash and therefore would be reported on the statement of cash flows?
  1. retiring of bond payable
  2. acquiring of treasury stock
  3. declaring stock dividends
  4. issuing long-term debt
  1. A five-year bond was issued at par for $640,000 cash.  This transaction should be shown on a statement of cash flows under
  1. investing activities
  2. operating activities
  3. financing activities
  4. noncash activities

Solutions

Expert Solution

Answer- 1)- During 2019, Xylo Company sells common stock for $260,000; retires a bond at a cost of $241,000; and pays dividends to shareholders of $29,550. The impact of these activities on the statement of cash flows is = $10,550 decrease in the financing section.

Explanation-

Cash Flow from Financing activities
Cash dividends paid -29550
Common stock issued 260000
Bonds paid -241000
Net cash Flow from Financing activities -10550

2)- Common stock issued in exchange for land would be reported in the statement of cash flows in= a separate schedule.

Explanation- A non cash investing and financing activities.

3)- The following represents an inflow of cash and therefore would be reported on the statement of cash flows = issuing long-term debt.

4)- A five-year bond was issued at par for $640,000 cash.  This transaction should be shown on a statement of cash flows under= financing activities.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

A bond is convertible into common stock for $50. If the company announces a 50% stock...
A bond is convertible into common stock for $50. If the company announces a 50% stock dividend, what is the new conversion price? $18.18 $22.22 $33.33 $45.45
A bond is convertible into common stock for $20. If the company announces a 10% stock...
A bond is convertible into common stock for $20. If the company announces a 10% stock dividend, what is the new conversion price? $18.00 $22.22 $33.33 $18.18
Murray Motor Company wants you to calculate its cost of common stock. During the next 12...
Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $2.00 per share, and the current price of its common stock is $40 per share. The expected growth rate is 3 percent. a. Compute the cost of retained earnings (Ke). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) cost of retained earnings_____________% b. If a $3 flotation...
During January 2019, Mindy, Inc. acquired 30% of the outstanding common stock of Milton Co. for...
During January 2019, Mindy, Inc. acquired 30% of the outstanding common stock of Milton Co. for $1,500,000. This investment gave Mindy the ability to exercise significant influence over Milton. Milton’s assets on that date were recorded at $6,400,000 with liabilities of $3,000,000. Any excess of cost over book value of Mindy’ investment was attributed to unrecorded patents having a remaining useful life of ten years. In 2019, Milton reported net income of $600,000. For 2020, Milton reported net income of...
The Alford Group had 260,000 shares of common stock outstanding at January 1, 2021. The following...
The Alford Group had 260,000 shares of common stock outstanding at January 1, 2021. The following activities affected common shares during the year. There are no potential common shares outstanding.    2021 Feb. 28 Purchased 6,000 shares of treasury stock. Oct. 31 Sold the treasury shares purchased on February 28. Nov. 30 Issued 24,000 new shares. Dec. 31 Net income for 2021 is $1,419,000. 2022 Jan. 15 Declared and issued a 2-for-1 stock split. Dec. 31 Net income for 2022...
A retailer has yearly sales of $650,000. Inventory on January 1 is $260,000 (at cost). During...
A retailer has yearly sales of $650,000. Inventory on January 1 is $260,000 (at cost). During the year, $500,000 of merchandise (at cost) is purchased. The ending inventory is $265,000 (at cost). Operating costs are $90,000. a. Calculate the cost of goods sold b. Calculate the net profit
Overland Corporation is authorized to issue 250,000 shares of $1 par value common stock. During 2019,...
Overland Corporation is authorized to issue 250,000 shares of $1 par value common stock. During 2019, Overland Corporation took part in the following selected transactions March 1 Issued 55,000 shares of stock for cash at $76 per share. Overland had to pay $27,000 of stock issue costs to issue these shares. June 1 Overland issued 10,000 shares of stock in exchange for land that was appraised at $815,000. On that date, Overland’s stock was being actively traded on a national...
Parsons Company acquired 90% of the outstanding common stock of Shea Company on June 30, 2019,...
Parsons Company acquired 90% of the outstanding common stock of Shea Company on June 30, 2019, for $426,000. On that date, Shea Company had retained earnings in the amount of $60,000, and the fair value of its recorded assets and liabilities was equal to their book value. The excess of implied over the fair value of the recorded net assets was attributed to an unrecorded manufacturing formula held by Shea Company, which had an expected remaining useful life of five...
cost of common stock equity.Ross Textiles wishes to measure its cost of common stock equity. The​...
cost of common stock equity.Ross Textiles wishes to measure its cost of common stock equity. The​ firm's stock is currently selling for $35.41 . The firm expects to pay a $3.25 dividend at the end of the year​ (2016). The dividends for the past 5 years are shown in the following​ table: Year   Dividend per share 2015   2.97 2014   2.65 2013   2.44 2012   2.14 2011   2.06 After underpricing and flotation​ costs, the firm expects to net $32.93 per share on...
A bond is convertible into common stock for $25. The bond trades at 120 and the...
A bond is convertible into common stock for $25. The bond trades at 120 and the stock trades at $32. Which of the following are true? I. The stock trades above parity II. The stock trades below parity III. Converting the bond would be profitable IV. Converting the bond would not be profitable I & III II & IV I & IV II & III
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT