Question

In: Finance

1.) Indicate whether each of the following items would result in net cash flow from operating...

1.) Indicate whether each of the following items would result in net cash flow from operating activities being higher (H) or lower (L) than net income.

a.) Decrease in accounts payable.

b.) Depreciation expense.

c.) Decrease in inventory.

d.) Gain on sale of assets.

e.) Increase in accounts receivable.

f.) Increase in deferred tax liabilities.

g.) Decrease accrued liabilities.

h.) Increase in prepaid expenses.

i.) Increase in deferred revenue.

j.) Decrease in interest receivable.

2.) Indicate whether each of the following events would cause an inflow or an outflow of cash and whether it would affect the investing (I) or financing (F) activities on the statement of cash flows.

a.) Repayments of long-term debt.

b.) Sales of marketable securities.

c.) Repurchase of company’s common stock.

d.) Sales of common stock to investors.

e.) Purchase of equipment.

f.) Payment of dividends.

g.) Purchase of marketable securities.

h.) Borrowing from bank.

i.) Sale of building.

j.) Acquisition of company.

Expert Solution

Requirement (1)

(a) Decrease in Accounts Payable – Lower (L)

(b) Depreciation Expense – Higher (H)

(c) Decrease in Inventory - Higher (H)

d) Gain on sale of assets – Lower (L)

(e) Increase in Accounts Receivable – Lower (L)

(f) Increase in Deferred Tax Liabilities – Higher (H)

(g) Decrease in Accrued Liabilities – Lower (L)

(h) Increase in Prepaid Expenses – Lower (L)

(i) Increase in Deferred Revenue – Higher (H)

(j) Decrease in Interest Receivable – Higher (H)

Requirement (2)

(a)Repayments of Long-term debt – Financing Activity - Outflow

(b) Sales of Marketable Securities – Investing Activity - Inflow

(c) Repurchase of company’s common stock – Financing Activity - Outflow

(d) Sales of common stock to investors – Financing Activity - Inflow

(e) Purchase of Equipment – Investing Activity - Outflow

(f) Payment of Dividends – Financing Activity - Outflow

(g) Purchase of Marketable Securities – Financing Activity - Outflow

(h) Borrowing from Bank – Financing Activity – Inflow

(i) Sale of Building – Investing Activity - Inflow

(j) Acquisition of a Company – Investing Activity - Outflow

jeff jeffy answered 1 year ago

For each of the following items, indicate whether it would be classified as an (O) operating...

For each of the following items, indicate whether it would be classified as an (O) operating activity, an (I) investing activity, a (F) financing activity, or a significant (N) noncash investing or financing activity. __________Received cash dividends from an investment in the stock of another corporation. __________Received interest from an investment in the bonds of another corporation. __________Purchase of land for cash. __________Purchased a building in exchange for common stock. __________Purchased treasury stock. __________Paid interest on a note payable. __________Collected...

Q5 For each of the following transactions, indicate whether net cash flows from operating activities (O),...

Q5 For each of the following transactions, indicate whether net cash flows from operating activities (O), investing activities (I), or financing activities (F) are affected and whether the effect is an inflow (+) or outflow (-), or write NE if the transaction has no effect on cash. (Hint: determine the journal entry recorded for the transaction. The transaction affects net cash flows if, and only if, the cash account is affected.) ______1. Paid a building rent for the following period....

Indicate whether the account is an Operating Cash Flow (O); Cash Flow From Investment (I) or...

Indicate whether the account is an Operating Cash Flow (O); Cash Flow From Investment (I) or Cash Flow from Financing (F) also indicate whether the activity is a Source (+) or Use (-) of funds. __________ Increase in Accounts Receivable __________ Increase in Accounts Payable ___________ Increase in Notes Payable ___________Payment of Cash Dividends to Shareholders ___________ Increase or purchase of equipment

Which of the following items would not be included as a cash flow from operating activities...

Which of the following items would not be included as a cash flow from operating activities in a statement of cash flows? Multiple Choice Collections from customers. Interest on note payable. Purchase of equipment. Purchase of inventory.

1. For each of the following items, indicate whether it would be classified as an (O)...

1. For each of the following items, indicate whether it would be classified as an (O) operating activity, an (I) investing activity, a (F) financing activity, or a significant (N) noncash investing or financing activity. __________Received cash dividends from an investment in the stock of another corporation. __________Collected accounts receivable from customers. __________Issued bonds payable for cash. __________Paid wages to employees. __________Issued stock for cash. __________Sold equipment for cash. __________Purchased land in exchange for a note payable. __________Paid cash...

Indicate whether each of the following items increases or decreases cash flow. Decrease in accrued expenses...

Indicate whether each of the following items increases or decreases cash flow. Decrease in accrued expenses Dividend payment Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in investments Depreciation expense Decrease in notes payable Decrease in accounts receivable Increase in notes receivable Increase in bonds payable Increase in Plant and equipment (gross) Increase in common stock Increase in preferred stock Decrease in income tax payable

Indicate whether each of the following would be added to or deducted from net income in...

Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method: a. Increase in prepaid expenses b. Amortization of patents c. Increase in salaries payable d. Gain on sale of fixed assets e. Decrease in accounts receivable f. Increase in notes receivable due in 60 days g. Amortization of discount on bonds payable h. Decrease in merchandise inventory i. Depreciation of fixed assets j....

Net Cash Flow From Operating Activities The following are accounting items taken from Tyrone Shoelaces Company's...

Net Cash Flow From Operating Activities The following are accounting items taken from Tyrone Shoelaces Company's records for 2016: Net income, $22,700 Payment for purchase of land, $4,000 Payment for retirement of bonds, $6,000 Depreciation expense, $7,800 Receipt from issuance of common stock, $7,000 Patent amortization expense, $3,700 Increase in accounts receivable, $4,300 Payment of dividends, $5,000 Decrease in accounts payable, $2,700 Required: Prepare the net cash flow from operating activities section of Tyrone's 2016 statement of cash flows using...

PART A Indicate whether each of the following items should be classified as an operating, investing,...

PART A Indicate whether each of the following items should be classified as an operating, investing, or financing activity on the statement of cash flows. If an item does not belong on the statement, indicate as "NA" (Not applicable). a. Declaration of dividends on common shares, to be paid later b. Payment of dividends on common shares c. Purchase of equipment d. Receipt of cash from the sale of a warehouse e. Receipt of cash through a long-term bank loan...

With respect to the Cash Flow statement indicate whether the following listed items are categorized under:...

With respect to the Cash Flow statement indicate whether the following listed items are categorized under: (O)Cash Flow from Operating Activity (I)Cash Flow from Investing Activity (F)Cash Flow From Financing Activity: a) Cash received:Sale of Property,Plant and Equipment.__ b) Cash Received From Customers___ c) Cash Paid to repurchase Outstanding shares Common Stock___ d)Cash Paid to Retire Bonds___ e)Cash received sale of reporting firm’s Common Stock.____ f)Cash Paid for employee wages.___ g)Cash Dividends Paid___ h)Cash Paid for Property Plant and Equipment___...