Two years ago, Kathy, Inc. invested $90,000 in bonds from another company. During the current accounting period, Kathy Inc. sold part of those bonds for $45,000, purchased the common stock of another company for $6,000, and received dividends of $3,000 from another stock investment. On the statement of cash flows for this accounting period, Kathy would report a net cash: Multiple Choice O O outflow of $39,000 from investing activities. inflow of $39,000 from investing activities. outflow of $42,000 from financing activities. inflow of $42,000 from investing activities.
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- Oriole Company purchased treasury stock with a cost of $68200 during 2022. During the year, the company paid dividends of $24800 and issued bonds payable for proceeds of $1086200. Cash flows from financing activities for 2022 total $93000 net cash outflow. $993200 net cash inflow. $1129600 net cash inflow. $1061400 net cash inflow.Moore Company is preparing its statement of cash flows for the current year. During the year, the company retired two issuances of debt and properly recorded the transactions. These transactions were as follows: Paid cash of $12,700 to retire bonds payable with a face value of $15,000 and a book value of $13,300. Paid cash of $48,000 to retire bonds payable with a face value of $45,000 and a book value of $47,000. Required: Record, in journal entry form, the entries that Moore would make for the preceding transactions on its spreadsheet to prepare its statement of cash flows. If an amount box does not require an entry, leave it blank.Pearl Co. reported $144,400 of net income for 2025. The accountant, in preparing the statement of cash flows, noted the following items occurring during 2025 that might affect cash flows from operating activities. 1. 2. 3. 4. 5. 6. 7. 8. Pearl purchased 100 shares of treasury stock at a cost of $20 per share. These shares were then resold at $25 per share. Pearl sold 100 shares of IBM common at $180 per share. The acquisition cost of these shares was $140 per share. There were no unrealized gains or losses recorded on this investment in 2025. Pearl revised its estimate for bad debts. Before 2025, Pearl's bad debt expense was 1% of its receivables. In 2025, this percentage was increased to 2%. Net accounts receivable decreased by $12,400 during 2025. Pearl issued 500 shares of its $10 par common stock for a patent. The market price of the shares on the date of the transaction was $23 per share. Depreciation expense is $35,800. Pearl Co. holds 40% of the Nirvana Company's common stock as…
- Bonita Co. reported $150,000 of net income for 2020. The accountant, in preparing the statement of cash flows, noted the following items occurring during 2020 that might affect cash flows from operating activities. 1. 2. 3. 4. 5. 6. N 7. 8. Bonita purchased 100 shares of treasury stock at a cost of $20 per share. These shares were then resold at $25 per share. Bonita sold 100 shares of IBM common at $200 per share. The acquisition cost of these shares was $140 per share. There were no unrealized gains or losses recorded on this investment in 2020. Bonita revised its estimate for bad debts. Before 2020, Bonita's bad debt expense was 1% of its receivables. In 2020, this percentage was increased to 2%. Net account for 2020 were $456,200, and net accounts receivable decreased by $12,200 during 2020. Bonita issued 500 shares of its $10 par common stock for a patent. The market price of the shares on the date of the transaction was $23 per share. Depreciation expense is $35,300. Bonita Co.…GRAY Company uses the direct method to prepare its statement of cash flows. GRAY had the following cash flows during 2021: Cash receipts from sale of an old van - P 160,000; Cash receipts from issuance of ordinary shares - P 2,000,000; Cash receipts from the issuance of 10%, 10-yr bonds - P 1,500,000; Cash receipts from customers - P 1,000,000; Cash receipts from repayment of loan made to another company - P 1,200,000; cash receipts from dividends - P 150,000; Cash receipts from interest - P 150,000; Cash payments for operating expenses - P 650,000; Cash payments for taxes - P300,000; Cash payments for equity securities bought classified as FVOCI - P 900,000; Cash payment for equipment purchased -P 300,000; Cash payments for land required - P 1,200,000. What is the net cash provided (used) from investing activities?XYZ Company used the direct method to prepare the statement of cash flows. The entity had the following cash flows during 2021: January 1 cash balance 1,000,000 Cash receipts from issuance of ordinary shares 1,208,000 Cash receipts from customers 1,640,000 Proceeds from sale of treasury shares (cost – P720,000) 800,000 Cash receipts from dividends on long-term investments 80,000 Cash receipts from repayment of loan made to another company 640,000 Cash payments to suppliers 1,080,000 Cash paid to redeem own shares 1,200,000 Cash paid for interest on long-term notes 120,000 Cash payments for operating expenses 320,000 Cash payments for dividends 200,000 Cash payment for income taxes 144,000 Cash paid to purchase land 1,040,000 Required: Prepare statement of cash flows at December 31, 2021.
- Rainey Enterprises loaned $45,000 to Small Company on June 1, Year 1, for one year at 7 percent interest. Required Show the effects of the following transactions in a horizontal statements model. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. (1) The loan to Small Company (2) The adjusting entry at December 31, Year 1. (3) The adjusting entry and collection of the note on June 1, Year 2.Rainey Enterprises loaned $20,000 to Small Company on June 1, Year 1, for one year at 6 percent interest. Required Show the effects of the following transactions in a horizontal statements model. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). For any element not affected by the event, leave the cell blank. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. (1) The loan to Small Company (2) The adjusting entry at December 31, Year 1. (3) The adjusting entry and collection of the note on June 1, Year 2. 3. Date 1. 6/1/Y1 2. 12/31/Y1 3. 6/1/72 (Adjusting entry) 6/1/Y2 (Collection of the note) Cash + + + + Assets Notes Receivable + + + + + RAINEY ENTERPRISES Horizontal Statements Model Balance Sheet Interest Receivable = Liabilities + + + + + Stockholders' Equity Retained Earnings Income Statement Revenue -…Rainey enterprises loaned $50,000 to Small Co. on June 1, Year 1, for one year at 6% interest. Rainey Enterprises loaned $50,000 to Small Co. on June 1, Year 1, for one year at 6 percent interest. Required Show the effects of the following transactions in a horizontal statements. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). For any element not affected by the event, leave the cell blank. (Not every cell will require entry. Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign. Round your answers to the nearest whole dollar.) (1) The loan to Small Co. (2) The adjusting entry at December 31, Year 1. (3) The adjusting entry and collection of the note on June 1, Year 2. RAINEY ENTERPRISES Horizontal Statements Model Assets Equity Income Statenment Statement of Cash Flow Date Liabilinies Notes Receivable Interest Receivable Retained…
- State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $290,000 of bonds, on which there was $2,900 of unamortized discount, for $302,000. b. Sold 12,000 shares of $25 par common stock for $57 per share. c. Sold equipment with a book value of $49,400 for $71,100. d. Purchased land for $327,000 cash. e. Purchased a building by paying $49,000 cash and issuing a $90,000 mortgage note payable. f. Sold a new issue of $260,000 of bonds at 98. g. Purchased 4,500 shares of $40 par common stock as treasury stock at $73 per share. h. Paid dividends of $1.90 per share. There were 20,000 shares issued and 3,000 shares of treasury stock. Effect Amount а. b. Cash payment C. $4 Cash receipt d. е. f. $ g. 2$ h. $4The following is an extract from the financial statements of Pompeii at 31 October: 20X7 20X6 $00 $000 Equity and liabilities: Share capital 120 80 Share premium 60 40 Retained earnings 85 68 265 188 Non-current liabilities: Bank loan 100 150 365 338 What Pompeii's net cash inflow or outflow from financing activities to include in the statement of cash flows for the year ended 31 October 20X7?Use the following information to calculate the net cash provided (inflow) or used by (outflow) from financing activities for the Lulu Corporation: (a) Net income, $10,000 (b) Sold common stock for $40,000 cash (c) Paid cash dividend of $13,000 (d) Repayment of bond payable, $26,000 (e) Purchased equ for $12,000 cash (f) Issued long term mortgage notes payable for $250,000 cash. (Note: in the answer space, write only the number, with no $ signs or commas. That is, if your answer is $1,000, white it as : 1000 ). Answer: