D. purchasing manager. The _____ section of the statement of cash flows includes increase and decrease in long-term assets. Investing activities b. B. payables manager. The gain (computed as proceeds minus the book value) appeared on the income statement and increased the company's net income. Investing activities include a. collecting cash on loans made. Paid $112,000 cash for a new truck. d. One to two. a. What lump sum deposited today at 12% compounded quarterly for 10 years will yield the same final amount as deposits of $4000 at the end of each 6-month period for 10 years at 4% compounded semiannu... a. Explain the benefits and drawbacks of each method. ANSWER: a) Purchases + Opening Creditors + Opening B/P –Closing Creditors-Closing B/P. | 1. The company paid $4,330 in i... TSW Inc. had the following data for last year: Net income = $800 Net operating profit after taxes (NOPAT) = $700 Total assets = $3,000 Total operating capital = $2,000 Information for the just-comp... During this past year, a company had cash flow to creditors, an operating cash flow, and net capital spending of $29,800, $66,815, and $28,080, respectively. A. If Salaries Expenses totaled $187,000 for this year, the cash paid to employees is: a. Provide the components for the calculation of free cash flow. Cannon Manufacturing Co. sold equipment that cost $18,000 for $6,000. So it issues some bonds in Europe, which U.S. investors buy. Chapter Name: Statement of cash flows Section: Exercises Number of Exercises: 13 Solutions: Available for all 13 exercises We have provided the solutions of all the exercises in the statement of cash flows chapter. Suppose there is an increase in cash flow. FV = $3,308; n = 21; i = 0.05; PMT = ? c. purchase of plant assets. Find the change in cash as a result of this transaction.? A company acquired a building, paying a portion of the purchase price with available cash, and issuing a mortgage note payable to a third party to obtain cash for the balance. A net total of $69 was paid on long-term debt. If your company's marginal tax rate is 35%, what will be the effect on cash flows of this sale (i.e., what will be the... Six years ago, ABC Company invested $45,525 in new machinery. The certificates include Debits and Credits, Adjusting Entries, Financial Statements, Balance Sheet, Income Statement, Cash Flow Statement, Working Capital and Liquidity, Financial Ratios, Bank Reconciliation, and Payroll Accounting. Selling and administrative expense is $250,000. Explain why investors are more concerned about cash flow than income. Some plant assets were purchased during 2017 and the payment was settled by issuing common stock amounting to $35. Suppose a business received $210,000 in cash from accounts receivable. Which of the following items is reported in the operating activities section of a statement of cash flows prepared using the direct method? They generally result from the transactions and other events that enter into the determination of net profit or loss. What is the net cash received o... Alpha company purchased a $1,000 6%, 6 year bonds at 97 and was held to maturity. I have done the math. Sciences, Culinary Arts and Personal What should be considered when a company estimates the cash flows used to analyze a proposed project? It purchased fixed assets for […] If the cash flow statement, or statement of cash flows, is prepared using the direct method, the amount of interest paid should appear as a separate line within the cash flows from operating activities. If you find difficulty in answering these questions, read ‘Cash flow statement‘ chapter thoroughly from the ... Read moreCash flow statement MCQs Investing c. Financing d. a or b is allowed e. a or c is allowed. What items are included in the capital expenditure for free cash flow? A. As operating activities C. As financing activities D. As no... Winslow Manor Construction provided the following information during the year: | Proceeds from sale of building | $65,000 | Cash paid to purchase in inventories | 22,000 | Proceeds from issuing lo... Tiles limited had the following balance sheet at the end of operation for 2015 and 2016 respectively. The cash payments and cash receipts of principal on a note payable are reported in the financing activities section of the cash flow statement. What is the effect on cash flow from the Statement of Cash Flow from these two items? I. c. obtaining capital from owners. When the real rate of interest is relatively high in the domestic country, the most likely effect is A. a decrease in the net capital outflow. These MCQs can help you to prepare for your exams, interviews and different tests. 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