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22 Nov 2018

22. Which of the following would be included in the calculation of net cash flows from financing activities? A. Cash proceeds from sales. B. Cash received from a sale of land. C. Dividends paid to stockholders. D. Cash used to purchases of equipment.

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Related questions

Statement of Cash Flows

The following is a list of the items to be included in thepreparation of Warrick Company's 2016 statement of cash flows:

Net income, $59,200

Payment for purchase of building, $98,000

Increase in accounts receivable, $7,400

Proceeds from issuance of common stock, $37,100

Increase in accounts payable, $4,500

Proceeds from sale of land, $7,000

Depreciation expense, $12,600

Payment of dividends, $36,000

Gain on sale of land, $5,300

Decrease in inventory, $3,700

Payment for purchase of long-term investments, $9,600

Amortization of discount on bonds payable, $1,900

Proceeds from issuance of note, $18,000

Increase in deferred taxes payable, $5,000

Equipment acquired by capital lease, $19,500

Decrease in salaries payable, $2,300

Beginning cash balance, $20,300

Required

1. Prepare the statement of cash flows.

WARRICK COMPANY
Statement of Cash Flows
For Year Ended December 31, 2016
Operating Activities:
Net income $
Adjustment for noncash income items:
Add: Depreciation expense
Add: Amortization of discount on bonds payable
Add: Accumulated depreciation
Less: Gain on sale of land
Adjustments for cash flow effects
from working capital items:
Increase in accounts receivable
Decrease in inventory
Increase in accounts payable
Decrease in salaries payable
Net cash provided by operating activities $
Investing Activities:
Payment for purchase of building $
Proceeds from sale of land
Payment for purchase of long-term investments
Net cash used for investing activities
Financing Activities:
Proceeds from issuance of common stock $
Payment of accounts payable
Proceeds from issuance of note
Net cash provided by financing activities
Net Decrease in Cash $
Cash, January 1, 2016
Cash, December 31, 2016 $
Investing and Financing Activities Not Affecting Cash
Investing Activities:
Acquisition of equipment under capital lease $
Financing Activities:
Incurrence of capital lease obligation for equipment

21-7 Tifton & Co. had the following cash transactions duringthe current year: Proceeds from issuance of common stock $400,000Payment of dividends 100,000 Payment for purchase of land 75,000Proceeds from issuance of bonds payable 300,000 Payment forpurchase of treasury stock 80,000 Proceeds from sale of equipment100,000 Payment for purchase of building 500,000 Prepare thefinancing activities section of Tifton & Co.'s statement ofcash flows. Use the minus sign to indicate cash outflows, adecrease in cash or cash payments. TIFTON & CO.

Statement of Cash Flows Current Year Financing Activities:

Proceeds from issuance of common stock $ 400,000

Payment of dividends $?

Proceeds from issuance of bonds payable $?

Payment for purchase of treasury stock $ ?

Net cash provided by financing activities $?

Net income $7,000

Cash dividends paid to stockholders 2,000

Cash proceeds from sale of land 3,000

Cash proceeds from bank loan 5,000

Cash payment (principal) on bank loan1,000

Cash paid to purchase equipment 4,000

Use the information above to answer the following question. Thecompany would report net cash provided by (used in) financingactivities of:

$(2,500).

$6,000.

$5,000.

$2,000.

Use the information above to answer the following question. Thecompany would report net cash provided by (used in) investingactivities of:

$(2,000).

$7,000.

$5,000.

$(1,000).

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