5 questions
Determine if each activity would be shown as an operating, financing, or investing activity in the statement of cash flows. 1. 1. Purchase of 5%, $4,000,000 bonds 2. Sale of land for $650,000 3. Payment of $4,500 for advertising Would each of the following activities be found in the operating, financing, or investing section of the statement of cash flows? 2. 1. Payment of $3,500 interest on bonds payable 2. Receipt of $5,200 dividends from equity securities 3. Issuance of a $5,000 note payable to bank for cash Determine if each transaction would be shown in the operating, financing, or investing section of the statement of cash flows. 3. 1. Payment for insurance for $15,000 for the upcoming year 2. Issuance of 5,000 shares of common stock 3. Sale of old equipment for $1,200 Allen Ales’ income statement for 20Y5 shows sales of $97,000 and the following expenses: interest expense, $2,000; utilities expense, $9,500; income tax expense, $7,700; and cost of merchandise sold, $16,500. The balance sheet gives the following changes in account balances: decrease in accounts receivable, $2,000; decrease in merchandise inventory, $7,100; increase in accounts payable, $3,000; decrease in utilities payable, $1,300; and decrease in income taxes payable, $4,000. Calculate the following: 4. 1. Cash receipts from customers 2. Cash payments for merchandise 3. Cash payments for utilities 4. Cash payments for income taxes For 20Y5, RPC Corporation’s income statement shows sales of $51,000 and the following expenses: legal expense, $4,000; interest expense, $1,500; income tax expense, $7,500; cost of merchandise sold, $10,900; and wages expense, $6,800. The balance sheet shows the following changes in account balances: decrease in accounts receivable, $1,950; increase in legal expenses payable, $3,100; decrease in wages payable, $4,100; increase in accounts payable, $5,500; decrease in merchandise inventory, $3,300; and increase in income taxes payable, $1,100. Calculate the following: 5. 1. Cash receipts from customers 2. Cash payments for merchandise 3. Cash payments for wages 4. Cash payments for income taxes 5. Cash payments for legal expenses