Required information Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3 [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Investment securities Machinery Land Exercise 12-10A (Algo) Part b Year 2 $ 102,100 527,300 143,500 Other information drawn from the accounting records: 1. Delsey incurred a $1,300 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,070 (cost of $25,390 minus accumulated depreciation of $21,320) was sold. The income statement showed a gain on the sale of machinery of $4,220. 3. Delsey did not sell land during the year. Year 1 $ 112,700 427,100 98,000 Cost of machinery purchased b. Compute the amount of cash flow associated with the purchase of machinery.

Required information Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3 [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Investment securities Machinery Land Exercise 12-10A (Algo) Part b Year 2 $ 102,100 527,300 143,500 Other information drawn from the accounting records: 1. Delsey incurred a $1,300 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,070 (cost of $25,390 minus accumulated depreciation of $21,320) was sold. The income statement showed a gain on the sale of machinery of $4,220. 3. Delsey did not sell land during the year. Year 1 $ 112,700 427,100 98,000 Cost of machinery purchased b. Compute the amount of cash flow associated with the purchase of machinery.

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Description: 5Required informationExercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3[The following information applies to the questions displayed below.]The following accounts and corresponding balances were drawn from Delsey Company

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.24MCE

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! Required information Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3 [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Investment securities Machinery Land Exercise 12-10A (Algo) Part c Year 2 $ 102, 100 527,300 143,500 Other information drawn from the accounting records: 1. Delsey incurred a $1,300 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,070 (cost of $25,390 minus accumulated depreciation of $21,320) was sold. The income statement showed a gain on the sale of machinery of $4,220. 3. Delsey did not sell land during the year. Amount of cash flow Year 1 $ 112,700 427,100 98,000 c. Compute the amount of cash flow associated with the sale of machinery.
Required Information Exercise 12-10A (Algo) Determining cash flows from Investing activities LO 12-3 [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Investment securities Machinery Land Other Information drawn from the accounting records: Year 2 $ 104,300 524,400 143,300 1. Delsey Incurred a $1,210 loss on the sale of Investment securities during Year 2. 2. Old machinery with a book value of $4,860 (cost of $25.120 minus accumulated depreciation of $20,260) was sold. The Income statement showed a gain on the sale of machinery of $4,670. 3. Delsey did not sell land during the year. Exercise 12-10A (Algo) Part e e. Prepare the investing activities section of the statement of cash flows. Note: Amounts to be deducted should be indicated with a minus sign. DEL SEY COMPANY Statement of Cash Flows (Investing Activities) For the Year…
5 ! Required information Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3 [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Investment securities Machinery Land Exercise 12-10A (Algo) Part b Year 2 $ 102,100 527,300 143,500 Other information drawn from the accounting records: 1. Delsey incurred a $1,300 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,070 (cost of $25,390 minus accumulated depreciation of $21,320) was sold. The income statement showed a gain on the sale of machinery of $4,220. 3. Delsey did not sell land during the year. Year 1 $ 112,700 427,100 98,000 Cost of machinery purchased b. Compute the amount of cash flow associated with the purchase of machinery. Prev 4 5 6 7 - of 9 Next
of 5 ok t ! Required information Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3 [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Investment securities Machinery Land Exercise 12-10A (Algo) Part a Year 2 $ 102,100 527,300 143,500 Year 1 $ 112,700 Other information drawn from the accounting records: 1. Delsey incurred a $1,300 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,070 (cost of $25,390 minus accumulated depreciation of $21,320) was sold. The income statement showed a gain on the sale of machinery of $4,220. 3. Delsey did not sell land during the year. Amount of cash flow 427,100 98,000 Required a. Compute the amount of cash flow associated with the sale of investment securities. S h
QUESTION 12 When using the indirect method to determine operating cash flows, how would the retirement of bonds payable at their maturity date be shown on the statement of cash flows? a. an investing activity b. not reported on the statement of cash flows c. a noncash investing and financing activity d. an operating activity e. a financing activity
Classifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. AnswerOperatingInvestingFinancing AnswerAddSubtract 2. Repurchases of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 3. Purchases of property and equipment. AnswerOperatingInvestingFinancing AnswerAddSubtract 4. Sale of investments classified as long-term. AnswerOperatingInvestingFinancing AnswerAddSubtract 5. Proceeds from the issuance of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 6. Increase in prepaid expenses and other current assets. AnswerOperatingInvestingFinancing AnswerAddSubtract 7. Acquisition for cash of a competitor.…
Statement of Cash Flows—Direct Method applied to PR 16-1A The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 Assets Cash $ 251,860 $ 238,290 Accounts receivable (net) 92,610 84,960 Inventories 261,030 250,990 Investments 0 97,660 Land 133,790 0 Equipment 285,270 224,620 Accumulated depreciation-equipment (67,800) (60,500) Total assets $956,760 $836,020 Liabilities and Stockholders' Equity Accounts payable $ 172,940 $ 164,700 Accrued expenses payable 17,390 21,740 Dividends payable 9,400 7,500 Common stock, $1 par 51,100 39,290 Paid-in capital: Excess of issue price over par-common stock 194,400 113,700 Retained earnings 511,530 489,090 Total liabilities and stockholders’ equity $956,760 $836,020 The income statement for the year ended December 31, 20Y3, is as…
Classifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. Answer Answer 2. Repurchases of common stock. Answer Answer 3. Purchases of property and equipment. Answer Answer 4. Sale of investments classified as long-term. Answer Answer 5. Proceeds from the issuance of common stock. Answer Answer 6. Increase in prepaid expenses and other current assets. Answer Answer 7. Acquisition for cash of a competitor. Answer Answer 8. Increase in current income tax payable. Answer Answer 9. Decrease in accounts payable. Answer Answer 10. Dividends paid to stockholders. Answer Answer 11.…
ces Exercise 12-1 (Algo) Indirect: Classifying Cash flows LO C1 Indicate where each item would appear on a statement of cash flows using the indirect method by placing an X in the appropriate column(s). Note: More than one column may be used. a. Purchased treasury stock with cash b. Inventory increased in the year c Issued bonds in return for cash d. Accounts payable decreased in the year e. Income taxes payable increased in the year f. Purchased land by issuing common stock g. Sold merchandise to customer for cash h. Purchased a building with cash i. Received a cash dividend from investment Statement of Cash Flows Operating Investing Financing Activities Activities Activities Dini # Noncash Investing & Financing. Activities Navt Not Reported on Statement or in Notes
In an statement of cash flows what is included in the operating activities section? In the investment section? In the financial activities section? One or two paragraph minimum per section CH 15
Refer to the information for Cornett Company above. What amount should Cornett report on its statement of cash flows as net cash flows provided by investing activities? a. $(5,200) b. $55,200 c. $144,800 d. None of these