ACCT 211 Connect Homework Chapter 12 Exercises Liberty University Solution

Question 1

Hampton Company reports the following information for its recent calendar year.

Prepare the operating activities section of the statement of cash flows for Hampton Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Question 2

Arundel Company disclosed the following information for its recent calendar year.

1. Prepare the operating activities section of the statement of cash flows using the indirect method. (Any losses or amounts to be deducted should be indicated with a minus sign.)

Question 3

a.

Equipment with a book value of $82,000 and an original cost of $169,000 was sold at a loss of $34,000.

b.

Paid $112,000 cash for a new truck.

c.

Sold land costing $315,000 for $425,000 cash, yielding a gain of $110,000.

d.

Long-term investments in stock were sold for $94,900 cash, yielding a gain of $16,250.

Question 4

The following financial statements and additional information are reported.

a.

A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash.

b.

The only changes affecting retained earnings are net income and cash dividends paid.

c.

New equipment is acquired for $58,600 cash.

d.

Received cash for the sale of equipment that had cost $49,600, yielding a $2,100 gain.

e.

Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.

f.

All purchases and sales of inventory are on credit.

(1) Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Question 5

(2) Compute the company's cash flow on total assets ratio for its fiscal year 2017.

Question 6

Using the direct method, prepare the statement of cash flows for the year ended June 30, 2017. (Amounts to be deducted should be indicated with a minus sign.)