connections to right of entry them. Instructions1. Obtaining a building by donation. Cash flows from investing activities include each of the following except: Multiple Choice-Payments to purchase plant assets.-Proceeds from collecting accounts receivable that arise from customer sales.-Payments to buy intangible assets.-Payments to acquire long-term investments.-Proceeds from the sale of equipment. \text{Instructions}\\ -Source of cash used to finance investing activities. The equity securities are sold on January 1, 2022 at P42. $15,000 \hline \text { Interest Payable } & & -0 \\ - In reporting cash flows from operating activities, entities are encouraged to report major classes of gross cash receipts and gross cash payments \end{array} $14,000 $82,600. What is the company's increase in cash flows provided by financing activities for the year? The following selected information is available for Ford Company from its comparative balance sheet. -A financial statement that presents information about changes in equity during a period. Ace prepares its statement of cash flows using the indirect method. On July 1, 2016, Merideth Industries Inc. issued $28,500,000 of 10-year, 8% bond at a market (effective) interest rate of 9%, receiving cash of$26,646,292. A payment for employee salaries. operating expenses. Gain on sale of land (6,500) Indirect method of calculating net cash provided or used by operating activities. Cash outflows from operating activities include cash payments to employees for services and creditors for interest. Investing, financing, operating. Cash flows from Financing Activities. "Acquisitions, Net of Cash Acquired" is a very common line item on the Cash Flow Statement. \hspace{23pt}\text{present value tables in Appendix A at the end of the text. What if your company hits hard times or the economy, once again, experiences a meltdown? ObservationNamePeterWarrickPlaxicoBurressSylvesterMorrisTravisTaylorLaveranuesColesDezWhiteJerryPorterRonDugansToddPinkstonDennisNorthcuttAnthonyLucasDarrellJacksonDannyFarmerSherrodGideonTrevorGaylorCoseyColemanTravisClaridgeKaulanaNoaLeanderJordanChadCliftonManulaSaveaRyanJohanningmeirMarkTauscherBlaineSaipaiaRichardMercierDamionMcIntoshJenoJamesAlJacksonChrisSamuelsStockarMcDougleChrisMcIngoshAdrianKlemmToddWadeMarvelSmithMichaelThompsonBobbyWilliamsDarnellAlfordTerranceBeadlesTutanReyesGregRobinson-RanPositionWidereceiverWidereceiverWidereceiverWidereceiverWidereceiverWidereceiverWidereceiverWidereceiverWidereceiverWidereceiverWidereceiverWidereceiverWidereceiverWidereceiverWidereceiverGuardGuardGuardGuardGuardGuardGuardGuardGuardGuardGuardGuardGuardOffensivetackleOffensivetackleOffensivetackleOffensivetackleOffensivetackleOffensivetackleOffensivetackleOffensivetackleOffensivetackleOffensivetackleOffensivetackleOffensivetackleWeight194231216199192218221206169175194197217173199322303317330334308310318321295328320304325361315307326320287332334312299333Time4.534.524.594.364.294.494.554.474.374.434.514.564.64.574.575.385.185.345.465.185.325.285.375.255.345.315.645.24.955.55.394.985.25.365.055.265.555.155.355.59Rating98.88.38.187.97.47.1776.96.66.56.46.27.476.86.76.36.16665.85.3558.587.87.67.37.16.86.86.46.36.16. \hline \text { Ron Dugans } & \text { Wide receiver } & 206 & 4.47 & 7.1 \\ Noncash financing and investing activity. d. On March 1, 2012, the company purchases insurance for$18,000 for a one-year policy to cover possible injury to mechanics. \hline \text { Todd Wade } & \text { Offensive tackle } & 326 & 5.2 & 7.3 \\ \text{Store Supplies Expense} & 4,928\\ paying principal to lenders. The FASB has expressed a preference for the direct method. Internal Revenue Service. Why is the Arabian Peninsula considered one of the most strategically important regions in the world? $900,000. \hline \text { Equipment } & 85,000 & \\ Gain on sale of plant asset. Equity financing involves selling a portion of a company's equity in return for capital. 1,000 Cash payments for grants considered to be operating activities of the grantor; Cash payments for quasi-external operating transactions (including payments in lieu of taxes) #6 - Vendor Take-Back Loan (VTB) or seller's financing. $48,000. All of the following are classifications on the statement of cash flows except If you take out a small business loan via debt financing and you turn no profit, you still need to pay back the loan plus interest. A large down payment, for example, may . Net cash provided by operating activities$133,400. Which of the following is not disclosed on the statement of cash flows when prepared under the direct method, either on the face of the statement or in a separate schedule? ii. Cash outflows for investing activities c. Cash inflows from financing activities d. Cash outflows for financing activities. The most common form of debt financing is a loan. Explanation Net cash provided by operating activities$136,400. Cash flows from Investing Activities 3. Table shows the position, weight, time (seconds to run 40 yards), and rating for 40 NFL prospects (USA Today, April 14, 2000), ObservationNamePositionWeightTimeRatingPeterWarrickWidereceiver1944.539PlaxicoBurressWidereceiver2314.528.8SylvesterMorrisWidereceiver2164.598.3TravisTaylorWidereceiver1994.368.1LaveranuesColesWidereceiver1924.298DezWhiteWidereceiver2184.497.9JerryPorterWidereceiver2214.557.4RonDugansWidereceiver2064.477.1ToddPinkstonWidereceiver1694.377DennisNorthcuttWidereceiver1754.437AnthonyLucasWidereceiver1944.516.9DarrellJacksonWidereceiver1974.566.6DannyFarmerWidereceiver2174.66.5SherrodGideonWidereceiver1734.576.4TrevorGaylorWidereceiver1994.576.2CoseyColemanGuard3225.387.4TravisClaridgeGuard3035.187KaulanaNoaGuard3175.346.8LeanderJordanGuard3305.466.7ChadCliftonGuard3345.186.3ManulaSaveaGuard3085.326.1RyanJohanningmeirGuard3105.286MarkTauscherGuard3185.376BlaineSaipaiaGuard3215.256RichardMercierGuard2955.345.8DamionMcIntoshGuard3285.315.3JenoJamesGuard3205.645AlJacksonGuard3045.25ChrisSamuelsOffensivetackle3254.958.5StockarMcDougleOffensivetackle3615.58ChrisMcIngoshOffensivetackle3155.397.8AdrianKlemmOffensivetackle3074.987.6ToddWadeOffensivetackle3265.27.3MarvelSmithOffensivetackle3205.367.1MichaelThompsonOffensivetackle2875.056.8BobbyWilliamsOffensivetackle3325.266.8DarnellAlfordOffensivetackle3345.556.4TerranceBeadlesOffensivetackle3125.156.3TutanReyesOffensivetackle2995.356.1GregRobinson-RanOffensivetackle3335.596\begin{aligned} (Appendix 1) Compute the price of \$26,646,292 received for the bonds by using the }\\ 4. -Purchase of equipment for cash. ( Multiple Choice) Question 15. The acquisition of assets by assuming directly related liabilities. Also, equipment costing $165,000 was sold for its book value in Year 2. ThefirstsemiannualinterestpaymentonDecember31,2016,andtheamortizationofthebonddiscount,usingthestraight-linemethod. Information necessary to prepare the year-end adjusting entries appears below. During the current year, Beck Co. purchased equipment for cash of $47,000, and sold equipment with a $10,000 carrying amount for a gain of $5,000. -Differences between net income and net operating cash flow. 30,000 decrease Issuance of Stock 95,700 Study with Quizlet and memorize flashcards containing terms like The primary purpose of this financial statement is to is to provide relevant information about the cash receipts and cash payments of an entity during the period., The activities on the statement of cash flows should be displayed in this order., True or False. Plus the gain. For the debt financing component, it obtains a business loan from a bank in the amount of $30 million, with an interest rate of 3%. \hline\text { Depreciation Expense } & & -0- & \\ Cash receipts from Sales of equity or debt instruments and interest in joint venture. \text{Office Salaries Expense} & 53,000\\ Debt is a bet on your futureability to payback the loan. 3) Cash payments to govt for taxes, duties, fines, and other fees or penalties. $38,500. If less than 20% of the stock is acquired and no significant . The owner decides to give up 10% of ownership in the company and sell it to an investor in return for capital. To obtain this capital, Company ABC decides it will do so through a combination of equity financing and debt financing. Cash flows include movements between items that constitute cash or cash equivalents because these components are part of the cash management of an entity rather than part of its operating, investing and financing activities. (b) Comment on the relationship between Position and Time based upon the crosstabulation developed in above part. Stock Buybacks: Why Do Companies Buy Back Shares? Show details of net sales and The company uses the perpetual inventory system. (Roundtothenearestdollar.)b. -A financial statement that reports the cash inflows and cash outflows for an accounting period, and that classifies those cash flows as operating activities, investing activities, or financing activities. What other financial statement should be considered, and why? Change from straight-line to accelerated depreciation. A stock dividend declared during the year. The sale of available-for-sale debt securities should be accounted for on the statement of cash flows as a(n) \hline \text { Blaine Saipaia } & \text { Guard } & 321 & 5.25 & 6 \\ Operating activities are transactions and other events not classified as investing and financing activities. You usually get money only for outstanding shares and vested options. -Amortization of intangible assets. In a statement of cash flows of a business enterprise, which of the following will increase reported cash flows from operating activities using the direct method? \hline \text { Accounts Payable } & & 11,000 \\ Thus, the amount to be reported in the financing activities section of the statement of cash flows is $600,000 ($200,000 + $400,000). Operating, financing, investing. When using the statement of cash flows to evaluate a company's continuing solvency, the most important factor to consider is the cash The difference between purchases and the amount paid to suppliers is the change in accounts payable. Equity investors purchase shares of a company with the expectation that they'll rise in value in the form of capital gains, and/or generate capital dividends. Will the bond proceeds always be less than the face amouont of the bonds when the}\\ The shares are currently . 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