What is the total amount of stockholders\' equity as of December 31, 2015? $610,
ID: 2722117 • Letter: W
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What is the total amount of stockholders' equity as of December 31, 2015? $610,000 $750,000 $1,010,000 $1,150,000 Too difficult to calculate from the data given. On February 3,2015 Bombard Corporation acquired 4,000 shares of its own SI par value common stock for $30 per share. On May 24. 2015 1,500 shares of the treasury stock were sold for $35 per share. Required: Prepare the Journal entries to record the purchase and sale of the treasury stock. Omit explanations. The statement of cash flows will NOT report: cash payments In the current year. cash receipts in the current year. noncash investing and financing activities. revenues and expenses for the current year. the relationship of net income to changes in the company's cash. Independent Support. Inc. issued common stock for $500,000 cash in 2015. The company declared and paid cash dividends of $50.000 and purchased treasury stock at a cost of $20,000. The financing section of the statement of cash flows will report Net Cash Provided by Financing Activities of: $430,000. $450,000. $500,000. $520.000. My answer is: The most important type of cash flows on the statement of cash flows Is The least important type of cash Hows on the statement of cash flows is operating activities: investing activities investing activities: Financing activities Financing activities: investing activities operating activities: financing activities This question requires thinking; I can only eat. sleep and dream. Positive signs of a successful company as seen on the statement of cash flows do NOTExplanation / Answer
Feb 3 Treasury stock A/C Dr 120000
To Cash A/C 120000
May 24 Cash A/C Dr 52500
To Additional paid in capital A/C 7500
To Treasury stock A/C 45000
Statement of cash flows reflects only those operating , investing and financing activities which have an impact on cash.
For example, depreciation is a non cash expense ,hence it is added back to profits while calculating cash flow from operations from net income.
4.
Cash flow from financing activities
Share issue 500,000
Less: Cash dividend 50,000
Less: Treasury stock 20,000
Cash flow from financing activities 430,000
Least important section is cash from financing activities because more important for success of business is how the invested capital is being utilized .It is reflected in the form of return on capital ,return on equity etc.
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