P12-1A You are provided with the following transactions that took place during a recent fiscal year.
Transaction Where Reported on Statement Cash Inflow, Outflow, or No Effect?
a. Recorded depreciation expense on the plant assets.
b. Recorded and paid interest expense.
c. Recorded cash proceeds from a sale of plant assets.
d. Acquired land by issuing common stock.
e. Paid a cash dividend to preferred stockholders.
f. Distributed a stock dividend to common stockholders.
g. Recorded cash sales.
h. Recorded sales on account.
i. Purchased inventory for cash.
j. Purchased inventory on account.
Distinguish among operating, investing, and financing activities.
Instructions
Complete the table, indicating whether each item (1) should be reported as an operating (O) activity, investing (I) activity, financing (F) activity, or as a noncash (NC) transaction reported in a separate schedule, and (2) represents a cash inflow or cash outflow or has no cash flow effect. Assume use of the indirect approach.
Click here for the solution: You are provided with the following transactions that took place during a recent fiscal year
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Thursday, August 13, 2015
Tuesday, August 4, 2015
You are provided with the following transactions that took place during the year
P12-12A You are provided with the following transactions that took place during the year.
Transactions Free Cash Flow ($125,000) Current Cash Debt Coverage Ratio (0.5 times) Cash Debt Coverage Ratio (0.3 times)
a. Recorded credit sales $2,500.
b. Collected $1,900 owed by customers.
c. Paid amount owed to suppliers $2,750.
d. Recorded sales returns of $500 and credited the customer’s account.
e. Purchased new equipment $5,000; signed a long-term note payable for the cost of the equipment.
f. Purchased a patent and paid $65,000 cash for the asset.
Instructions
For each transaction listed above, indicate whether it will increase (I), decrease (D), or have no effect (NE) on the ratios.
Click here for the solution: You are provided with the following transactions that took place during the year
Transactions Free Cash Flow ($125,000) Current Cash Debt Coverage Ratio (0.5 times) Cash Debt Coverage Ratio (0.3 times)
a. Recorded credit sales $2,500.
b. Collected $1,900 owed by customers.
c. Paid amount owed to suppliers $2,750.
d. Recorded sales returns of $500 and credited the customer’s account.
e. Purchased new equipment $5,000; signed a long-term note payable for the cost of the equipment.
f. Purchased a patent and paid $65,000 cash for the asset.
Instructions
For each transaction listed above, indicate whether it will increase (I), decrease (D), or have no effect (NE) on the ratios.
Click here for the solution: You are provided with the following transactions that took place during the year
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