DeVry University, Keller Graduate School of Management ACCT 557. Chapter 23 Solutions. All Correct Answers.

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Wainwright Corporation had the following activities in 2012. 1. Sale of land $180,000 2. Purchase of inventory $845,000 3. Purchase of treasury stock $72,000 4. Purchase of equipment $415,000 5. ... Issuance of common stock $320,000 6. Purchase of available-for-sale securities $59,000 Compute the amount Wainwright should report as net cash provided (used) by investing activities in its statement of cash flows. (Enter amount as positive.) $ 294000 used BE23-2 Your answer is correct. Stansfield Corporation had the following activities in 2012. 1. Payment of accounts payable $770,000 2. Issuance of common stock $250,000 3. Payment of dividends $350,000 4. Collection of note receivable $100,000 5. Issuance of bonds payable $510,000 6. Purchase of treasury stock $46,000Compute the amount Stansfield should report as net cash provided (used) by financing activities in its 2012 statement of cash flows. (Enter amount as positive.) $ 364000 provided BE23-3 Your answer is correct. Novak Corporation is preparing its 2012 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Using the code below, indicate how each item will affect Novak's 2012 statement of cash flows. Code Letter Effect A Added to net income in the operating section D Deducted from net income in the operating section R-I Cash receipt in investing section P-I Cash payment in investing section R-F Cash receipt in financing section P-F Cash payment in financing section N Noncash investing and /or financing Items P-I (a) Purchase of land and building. A (b) Decrease in accounts receivable. R-F (c) Issuance of stock. A (d) Depreciation expense. R-I (e) Sale of land at book value. R-I and D (f) Sale of land at a gain. P-F (g) Payment of dividends. D (h) Increase in accounts receivable. P-I (i) Purchase of available-for-sale investment A (j) Increase in accounts payable D (k) Decrease in accounts payable. R-F (l) Loan from bank by signing note.N (m) Purchase of equipment using a note. D (n) Increase in inventory R-F (o) Issuance of bonds. P-F (p) Retirement of bonds payable. R-I and A (q) Sale of equipment at a loss. P-F (r) Purchase of treasury stock. BE23-4 Your answer is correct. Bloom Corporation had the following 2012 income statement. Sales $200,000 Cost of goods sold 120,000 Gross profit 80,000 Operating expense (including depreciation of $21,000) 50,000 Net income $30,000 The following accounts increased during 2012: accounts receivable $12,000; inventory $11,000; accounts payable $13,000. Complete the cash flows from operating activities section of Bloom's 2012 statement of cash flows using the direct method. (List amounts from largest to smallest eg 10, 5, 3, 2.) Cash flows from operating activities Cash received from customers Cash payments To suppliers $ 118000 For operating expenses 29000 Net cash provided by operating activitiesBE23-5 Your answer is correct. Bloom Corporation had the following 2012 income statement. Sales $200,000 Cost of goods sold 120,000 Gross profit 80,000 Operating expense (including depreciation of $21,000) 50,000 Net income $30,000 The following accounts increased during 2012: accounts receivable $12,000; inventory $11,000; accounts payable $13,000. Complete the cash flows from operating activities section of Bloom's 2012 statement of cash flows using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1.) [Show More]

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