Effects of transactions on statement of cash flows


Problem: Indicate for each of the following what should be disclosed on a statement of a cash flows (indirect method). If not disclosed , write "not shown". There may be more than one answer for some items. For an item that is added to net income , write "ADD", and for an item that is detucted from net income, write "deduct". show financing and investing outflows in paretheses. For example, an answer might be : detuct $4700 or investing (31000). If the item is a noncash transaction that should be disclosed seperately, write "noncash".

a - The deferred tax liability increased 10,000

b - The balance in investment in Hoyt Co. stock increased 12,000 as a result of using the equity method

c - Issuance of a stock dividend increased common stock 40,000 and paid in capital 160000

d - Amortization of bond discount 1,600

e - Machinery that cost 100,000 and had accumulated depretiattion 48000 was sold for 55000

f - Issued 6,000 shares of common stock ($10par) with a market value of 15$ per share for machinery (show amount)

g - Amortization of patents $3,000

h - Cash dividends paid, $60,000

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Accounting Basics: Effects of transactions on statement of cash flows
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