Question

In: Accounting

Denton Corp.’s statement of financial position accounts as at 31 December 20X4 and 20X5 and information relating to 20X5 activities are presented below.

Denton Corp.’s statement of financial position accounts as at 31 December 20X4 and 20X5 and information relating to 20X5 activities are presented below.

 

Information relating to 20X5 activities:
• Net earnings for 20X5 were $690,000.
• Cash dividends were declared and paid in 20X5.
• Equipment costing $400,000 and having a net book value of $150,000 was sold for $150,000.
• A long-term investment was sold for $135,000. There were no other transactions affecting long-term investments in the year.
• Short-term investments consist of treasury bills with an original term of three months.

 

Required:

Determine the following amounts for Denton for the year 20X5:

1. Net cash from operating activities (indirect method)

2. Net cash from investing activities

3. Net cash from financing activities

Solutions

Expert Solution

DENTON CORPORATION

Statement of Cash Flows

For the year ended 31 December 20x5

 

 

Assumed: short-term bank debt is not an overdraft and thus is not included in the cash definition.

 

*    Accumulated depreciation 20x5..............................................        $450,000

      Accumulated depreciation on equipment sold........................     + 250,000

      Less: Accumulated depreciation 20x4.....................................        - 450,000

      Depreciation expense...............................................................       $ 250,000

 

**  Equipment 20x5.......................................................................     $1,700,000

      Cost of equipment sold............................................................          400,000

      Less: equipment 20x4..............................................................     - 1,000,000

  Purchase of equipment.............................................................     $1,100,000

Junaid answered 1 year ago
Next > < Previous

Related Solutions

Fantasy Corp. Statement of financial position As at December 31 20X4 20X3 Cash $ 43,000 $...
Fantasy Corp. Statement of financial position As at December 31 20X4 20X3 Cash $ 43,000 $ 28,000 Accounts receivable 117,000 104,000 Inventory 59,000 64,000 Prepaid expenses 8,000 6,000 Investment in financial assets at amortized cost 44,000 42,000 Investment in associate 260,000 224,000 Property, plant and equipment (net) 479,000 325,000 Land 200,000 200,000 $ 1,210,000 $ 993,000 Accounts payable $ 30,000 $ 20,000 Income taxes payable 4,000 7,000 Dividends payable 16,000 13,000 Other current liabilities 68,000 54,000 Finance lease 200,000 0...
Fantasy Corp. Statement of financial position As at December 31 20X4 20X3 Cash $ 43,000 $...
Fantasy Corp. Statement of financial position As at December 31 20X4 20X3 Cash $ 43,000 $ 28,000 Accounts receivable 117,000 104,000 Inventory 59,000 64,000 Prepaid expenses 8,000 6,000 Investment in financial assets at amortized cost 44,000 42,000 Investment in associate 260,000 224,000 Property, plant and equipment (net) 479,000 325,000 Land 200,000 200,000 $ 1,210,000 $ 993,000 Accounts payable $ 30,000 $ 20,000 Income taxes payable 4,000 7,000 Dividends payable 16,000 13,000 Other current liabilities 68,000 54,000 Finance lease 200,000 0...
Selected accounts from the SFP of Gentron Ltd. at 31 December 20X5 and 20X4 are presented below. Gentron declared $100,000 of cash dividends during
Selected accounts from the SFP of Gentron Ltd. at 31 December 20X5 and 20X4 are presented below. Gentron declared $100,000 of cash dividends during the year, and purchased $200,000 of machinery in direct exchange for common shares. Required:List the items that would be included in the SCF from these accounts for 20X5. Include the appropriate section (operating, investing, or financing). Use the indirect method of presentation in the operating activities section. List the non-cash item disclosure. Make logical assumptions about...
3020 Corp.'s balance sheet accounts as of December 31, 2020 and 2019 and information relating to...
3020 Corp.'s balance sheet accounts as of December 31, 2020 and 2019 and information relating to 2020 activities are presented below.                                                                                                                   December 31                                                                                                           2020            2019          Assets          Cash                                                                                    $1,040,000    $   200,000          Accounts receivable (net) 1,000,000      1,020,000          Inventory 1,300,000      1,200,000          Long-term investments(carried at cost) 400,000         600,000          Plant assets 3,400,000      2,000,000          Accumulated depreciation (800,000) (900,000)          Patent                                                                                       180,000     200,000                   Total assets                                                              $6,520,000   $ 4,320,000          Liabilities and Stockholders' Equity          Accounts payable and accrued liabilities $1,660,000   ...
Rory Co.'s prepaid insurance was $50,000 at December 31, 20X5 and $25,000 at December 31, 20X4....
Rory Co.'s prepaid insurance was $50,000 at December 31, 20X5 and $25,000 at December 31, 20X4. Insurance expense was $20,000 for 20X5 and $15,000 for 20X4. What amount of cash disbursements for insurance should be reported in Rory's 20X5 net cash flows from operating activities presented on a direct basis? The answer is $45,000. *how to get $45,000? **how are insurance payment and insurance expense different? It's asking cash disbursements...is it the same as insurance payment or expense? Please help,...
QUESTION 2 Noor Corp.'s statements of financial position at December 31, 2020 and 2019 and information...
QUESTION 2 Noor Corp.'s statements of financial position at December 31, 2020 and 2019 and information relating to 2020 activities are presented below:     December 31, ___    2020                       2019 Assets          Cash.............................................................................................    $ 110,000               $ 50,000          Temporary investments.................................................................          150,000                            —          Accounts receivable (net)..............................................................          255,000                255,000          Inventory......................................................................................       345,000                300,000          Long-term investments..................................................................       100,000                150,000          Property, plant and equipment......................................................      850,000                500,000          Accumulated depreciation............................................................       (225,000)             (225,000)          Goodwill.......................................................................................             45,000                   50,000                    Total assets............................................................................   $ 1,630,000         $ 1,080,000 Liabilities and Shareholders' Equity          Accounts payable..........................................................................       $ 415,000             $ 360,000          Long-term note payable................................................................          145,000                            —          Common shares............................................................................          600,000                475,000          Retained earnings.........................................................................          470,000                245,000                    Total liabilities and shareholders' equity................................   $ 1,630,000         $...
Using the historical financial statement information provided for KAJ Manufacturing, calculate the 20X4 to 20X5 percentage...
Using the historical financial statement information provided for KAJ Manufacturing, calculate the 20X4 to 20X5 percentage changes for these income statement items: AMOUNTS in MILLIONS Fiscal Year Ended December 31,20X5 December 31, 20X4 Sales $31,037 $25,333 Net Income $1,792 $1,398 a. Sales b. Net Income
Ayayai Corp.’s balance sheet at December 31, 2021, is presented below. AYAYAI CORP. Balance Sheet December...
Ayayai Corp.’s balance sheet at December 31, 2021, is presented below. AYAYAI CORP. Balance Sheet December 31, 2021 Cash $68,880 Accounts payable $71,680 Accounts receivable 127,400 Common stock ($10 par) 224,000 Allowance for doubtful accounts (4,200 ) Retained earnings 356,720 Supplies 12,320 Land 112,000 Buildings 397,600 Accumulated depreciation—buildings (61,600 ) $652,400 $652,400 During 2022, the following transactions occurred. 1. On January 1, Ayayai issued 3,360 shares of $40 par, 7% preferred stock for $137,760. 2. On January 1, Ayayai also...
Marigold Corp.’s balance sheet at December 31, 2021, is presented below. MARIGOLD CORP. Balance Sheet December...
Marigold Corp.’s balance sheet at December 31, 2021, is presented below. MARIGOLD CORP. Balance Sheet December 31, 2021 Cash $31,980 Accounts payable $33,280 Accounts receivable 59,150 Common stock ($10 par) 104,000 Allowance for doubtful accounts (1,950 ) Retained earnings 165,620 Supplies 5,720 Land 52,000 Buildings 184,600 Accumulated depreciation—buildings (28,600 ) $302,900 $302,900 During 2022, the following transactions occurred. 1. On January 1, Marigold issued 1,560 shares of $40 par, 7% preferred stock for $63,960. 2. On January 1, Marigold also...
Sheffield Corp.’s balance sheet at December 31, 2021, is presented below. SHEFFIELD CORP. Balance Sheet December...
Sheffield Corp.’s balance sheet at December 31, 2021, is presented below. SHEFFIELD CORP. Balance Sheet December 31, 2021 Cash $51,660 Accounts payable $53,760 Accounts receivable 95,550 Common stock ($10 par) 168,000 Allowance for doubtful accounts (3,150 ) Retained earnings 267,540 Supplies 9,240 Land 84,000 Buildings 298,200 Accumulated depreciation—buildings (46,200 ) $489,300 $489,300 During 2022, the following transactions occurred. 1. On January 1, Sheffield issued 2,520 shares of $40 par, 7% preferred stock for $103,320. 2. On January 1, Sheffield also...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT