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15. _____. On the statement of cash flows, the cash flows from investing activit

ID: 2504728 • Letter: 1

Question

15. _____. On the statement of cash flows, the cash flows from investing activities section would include all of the following exept:

A.    receipts from the sale of plant assets

B.    payments to acquire plant assets

C.    payments to acquire land for plant expansion

D.    receipts from the sale bonds payable

E.     None of the above

II. WRITE THE SOLUTION(S) IN THE SPACE PROVIDED.Mark your answer A, B, C, or D on the scantron sheet.Indicate the statement of cash flows section:
(A) operating activities,
(B) investing activities,
(C) financing activities, or
(D) none of the above, in which each of the following item would be reported on the statement of cash flows:

16. Purchase of plant assets

17. Operating income

18. Retirement of long-term debt

19. Sale of capital stock

20. Sale of plant assets

21. Payment of cash dividends

22. Gain on sale of plant assets23. Payment of stock dividends24. Receipt of interest income25. Payment of interest expense

26. An analysis of the general ledger accounts indicates that equipment, which had cost $50,000 and on which accumulated depreciation totaled $46,000 on the date of sale, was sold for $6,000 during the year.

Show the dollar amount and the type of activity (operating, financing, or investing,) for the above items on the Statement of Cash Flows.

27-28. The cash flows from operating activities are reported by the direct method on the Statement of Cash Flows. Determine the following:

27. If sales for the current year were $700,000 and trade receivables increased by $25,000 during the year, what was the amount of cash received from customers?

28. If income tax for the current year was $70,000 and income tax payable decreased by $10,000 during the year, what was the amount of cash payments for income tax?

29. If an analysis of the general ledger accounts indicates that equipment, which had cost $168,000 and on which accumulated depreciation totaled $135,000 on the October 1st was sold for $20,000. During 2009 the depreciation on the equipment was $30,000.                                                                                                                   
                                                                                                            
Required: How will the above items be shown (operating, financing, investing) on the statement of cash flows and are they added or subtracting in the statement of cash flows?
  

Explanation / Answer

15 D.    receipts from the sale bonds payable

16 (B) investing activities

17 (A) operating activities

18 (C) financing activities,

19 (C) financing activities,

20 (B) investing activities

21 (C) financing activities

22 (A) operating activities

23 (C) financing activities

24 (B) investing activities

25 (C) financing activities

26 Gain on Sale $2000 in operating activities
Sale of $6000 in investing activities

27 Collection = 700,000

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