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13 Dec 2019

Which of the following is classified as a financing activity on a statement of cash flows?

A. purchase of a vendor's common stock

B. sale of equipment at a gain

C. payment of dividends to shareholders

D. redemption of a sinking fund

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Tod Thiel
Tod ThielLv2
17 Dec 2019
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Related questions

1.All of the following should be recorded in the operatingactivities section of the statement of cash flows EXCEPT:

a decrease in inventory.

the total credits to the accumulated depreciation account.

a decrease in prepaid expenses.

a purchase of equipment in exchange for cash.

an increase in income taxes payable.

2. Which of the following would be classified as a financingactivity on the statement of cash flows?

Interest paid to a lender.

Dividends paid to the company's common stockholders.

Cash paid to acquire a long-term investment.

Cash received from a loan that was made to another company.

3.In a statement of cash flows, all of the following would beclassified as financing activities except:

the collection of cash related to a loan made to anotherentity.

the payment of a cash dividend on the company's own commonstock.

the cash paid to retire bonds payable.

the sale of the company's own common stock for cash.

4. The statement of cash flows:

serves as a replacement for the income statement and balancesheet.

explains the change in the cash balance at one point intime.

explains the change in the cash balance for one period oftime.

both A and B above.

5.In a statement of cash flows, receipts from sales of property,plant, and equipment should be classified as a(n):

Operating activity.

Financing activity.

Investing activity.

Selling activity.

Which of the following statements regarding the cash flow statement is true or false?

 

  1.  Working capital changes are accounted for as cash flows from operating activities.

  2. The purchase of property, plant, and equipment is classified as a financing activity.

  3. Accounts Payable is classified as a cash flow from financing activities.

1 )

The following events occurred last year at Dorder Corporation:

Purchase of plant and equipment $26,000
Sale of long-term investment $11,000
Dividends received on long-term investments $7,000
Paid off bonds payable $14,500
Depreciation expense $13,000

Based on the above information, the cash provided (used) by investing activities for the year on the statement of cash flows would net to:
$(15,000)
$(13,000)
$(14,500)
$(35,500)
2)

Last year Burch Corporation's cash account decreased by $33,000. Net cash provided by investing activities was $8,800. Net cash used in financing activities was $29,500. On the statement of cash flows, the net cash flow provided by (used in) operating activities was:
$(12,300)
$(33,000)
$20,700
$(53,700)
3)

McCorey Corporation recorded the following events last year:

Repurchase by the company of its own common stock $27,000
Sale of long-term investment $46,000
Interest paid to lenders $8,500
Dividends paid to the company's shareholders $56,000
Collection by McCorey of a loan made to another company $32,000
Payment of taxes to governmental bodies $18,500

On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities.

Based solely on the information above, the net cash provided by (used in) investing activities on the statement of cash flows would be:
$22,000
$(13,500)
$78,000
$(15,500)

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