In Year 2, Lansing Company purchased equipment for $357,000 and also sold some special purpose machinery with a book value of $152,600 for$177,000. In its statement of cash flows for Year 2, the company should report the following with respect to the above transactions:5Multiple Choice$180,000 net cash used by investing activities.Jhm$357,000 net cash used by investing avities.$180,000 net cash used by investing activities; $24,400 net cash provided by operating activities.$357,000 cash used by investing activities; $177,000 cash provided by financing activities.

The cash flow statement is prepared to record the cash flow from various activities during the…

Answered: m Year 2, Lansing Company purchased…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 8MCQ: Which item is added to net income when computing cash flows from operating activities? a. Gain on...

See similar textbooks

Similar questions

In the current year, Harrisburg Corporation collected 100,000 from its customers and paid out 30,000 to suppliers, 20,000 to employees, and 8,000 for income taxes. Using the direct method, prepare the operating activities section of its statement of cash flows based on this information.
Which item is added to net income when computing cash flows from operating activities? a. Gain on the disposal of property, plant, and equipment b. Increase in wages payable c. Increase in inventory d. Increase in prepaid rent Use the following information for Multiple-Choice Questions 11-9 and 11-10: Cornett Company reported the following information: cash received from the issuance of common stock, $150,000; cash received from the sale of equipment, $14,800; cash paid to purchase an investment, $20,000; cash paid to retire a note payable, $50,000; and cash collected from sales to customers, $225,000.
Swasey Company earned net income of 1,800,000 in 20X2. Swasey provided the following information: Required: Compute the financing cash flows for the current year.
Thompson Company sold a piece of equipment that had an original cost of 22,000 and a carrying value of 10,000 for 13,000 in cash. How would this information be reported on a statement of cash flows prepared using the indirect method?
Shown below are totals of the three sections from the SCF for the Sivad Motel for the year just ended. Analyze this information and prepare a report indicating your opinion regarding its sources and uses of cash and their impact on the future of the company. Your conclusions and recommendations should be supported with proper explanations and assumptions. Statement of Cash Flows Net cash provided by operating activities $10,000 Net cash used by investing activities (15,000) Net cash used by financing activities (5,000) Decrease in cash for the year (10,000) Cash at beginning of year 15,000 Cash at end of…
Shown below are totals of the three sections from the SCF for the Nanged Motel for the year just ended. Analyze this information and prepare a report indicating your opinion regarding its sources and uses of cash and their impact on the future of the company. Your conclusions and recommendations should be supported with proper explanations and assumptions. Statement of Cash Flows Net cash provided by operating activities $505,000 Net cash provided by investing activities 150,000 Net cash used by financing activities (50,000) Increase in cash for the year 605,000 Cash at beginning of year…
Shown below are totals of the three sections from the SCF for the Nanood Motel for the year just ended. Analyze this information and prepare a report indicating your opinion regarding its sources and uses of cash and their impact on the future of the company. Your conclusions and recommendations should be supported with proper explanations and assumptions. Statement of Cash Flows Net cash provided by operating activities $5,000 Net cash used by investing activities (50,000) Net cash provided by financing activities. $100,000 Increase in cash for the year 55,000 Cash at beginning of year…
Based on the following information, compute cash flows from financing activities under GAAP.Purchase of investments $ 250Dividends paid 1,200Interest paid 400Additional borrowing from bank 2,800
Strawbale, Incorporated purchases a $329,800 building, paying $228,000 in cash and signing a $101,800 promissory note. What will be reported on the statement of cash flows as a result of this transaction? Multiple Choice A $228,000 cash outflow from investing activities and a $101,800 noncash transaction A $329,800 cash outflow from investing activities A $228,000 cash outflow from investing activities and a $101,800 cash inflow from financing activities A $329,800 cash outflow from investing activities and a $101,800 cash inflow from financing activities
The cash balance of GMC Company is 32700 $ at the beginning of the year. The cash flows during the year are given as follows; Operating cash inflow:37800 Investing outflow: 29000 Financing cash inflow: 22300 Which of the following is the cash balance at the end of the year.Select one: a. 63800b. 64000 C. 68300d. 121800
Use the following excerpts from Nutmeg Company's financial records to determine net cash flows from operating activities and net cash flows from investing activities. Net income this year Purchased land this year Sold investments this year Original cost of investments that were sold $83,700 20,000 31,500 33,000 PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). Net cash flows from operating activities Net cash flows from investing activities
Based on the following information, compute cash flows from investing activities under GAAP.Cash collections from customers $800Purchase of used equipment 200Depreciation expense 200Sale of investments 450Dividends received 100Interest received 200

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS