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1.

Whispering Winds Corp. had the following transactions during2017:
1. Issued $230000 of par value common stock for cash.
2. Recorded and paid wages expense of $110400.
3. Acquired land by issuing common stock of par value $92000.
4. Declared and paid a cash dividend of $18400.
5. Sold a long-term investment (cost $5520) for cash of$5520.
6. Recorded cash sales of $736000.
7. Bought inventory for cash of $294400.
8. Acquired an investment in Zynga stock for cash of $38640.
9. Converted bonds payable to common stock in the amount of$920000.
10. Repaid a 6-year note payable in the amount of $404800.

What is the net cash provided by operating activities?

a. $331200.

b.

$561200.

c.

$441600.

d.

$533600.

2.

During 2017, Nash's Trading Post, LLC sold equipment with a bookvalue of $67200 for proceeds of $81200. The company purchased newequipment for $179200 by signing a long-term note payable. No othertransactions impacted long-term asset accounts during 2017. Theinvesting section of the statement of cash flows will report

a.

net cash outflows of $165200.

b.

net cash outflows of $98000.

c.

net cash inflows of $81200.

d.

net cash inflows of $14000.

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Jamar Ferry
Jamar FerryLv2
28 Sep 2019

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The Gopher Company’s transactions during 2018 included the following: Paid cash dividends of $1,200,000 Paid cash toward reducing a long-term note payable $900,000 Issued common stock in exchange for a building $750,000 Paid cash for bond interest $50,000 Bond discount amortization was recorded for $2,250 Issued preferred stock for cash $250,000 Sold a long-term stock investment with a book value of $79,000 for $123,000 cash Sold equipment with a book value of $90,000 for cash. The sale resulted in a $15,000 loss. Issued bonds with a maturity value of $2,000,000 in exchange for $1,950,000 cash Required: Determine the net cash flow from investing activities for 2018. Determine the net cash flow from financing activities for 2018.

The Gopher Company’s transactions during 2018 included the following:

Paid cash dividends of $1,200,000
Paid cash toward reducing a long-term note payable $900,000
Issued common stock in exchange for a building $750,000
Paid cash for bond interest $50,000
Bond discount amortization was recorded for $2,250
Issued preferred stock for cash $250,000
Sold a long-term stock investment with a book value of $79,000 for $123,000 cash
Sold equipment with a book value of $90,000 for cash. The sale resulted in a $15,000 loss.
Issued bonds with a maturity value of $2,000,000 in exchange for $1,950,000 cash

Required:

Determine the net cash flow from investing activities for 2018.

Determine the net cash flow from financing activities for 2018.

Use the following information for the Problems below.

Forten Company, a merchandiser, recently completed itscalendar-year 2017 operations. For the year, (1) all sales arecredit sales, (2) all credits to Accounts Receivable reflect cashreceipts from customers, (3) all purchases of inventory are oncredit, (4) all debits to Accounts Payable reflect cash paymentsfor inventory, and (5) Other Expenses are paid in advance and areinitially debited to Prepaid Expenses. The company’s incomestatement and balance sheets follow.

FORTEN COMPANY
Comparative Balance Sheets
December 31, 2017 and 2016
2017 2016
Assets
Cash $ 60,400 $ 80,500
Accounts receivable 76,340 57,625
Inventory 286,156 258,800
Prepaid expenses 1,280 2,035
Total current assets 424,176 398,960
Equipment 150,500 115,000
Accum.depreciation—Equipment (40,125 ) (49,500 )
Total assets $ 534,551 $ 464,460
Liabilities andEquity
Accounts payable $ 60,141 $ 125,175
Short-term notes payable 12,100 7,400
Total current liabilities 72,241 132,575
Long-term notes payable 61,500 55,750
Total liabilities 133,741 188,325
Equity
Common stock, $5 par value 176,750 157,250
Paid-in capital in excess ofpar, common stock 44,500 0
Retained earnings 179,560 118,885
Total liabilities andequity $ 534,551 $ 464,460
FORTEN COMPANY
Income Statement
For Year Ended December 31, 2017
Sales $ 617,500
Cost of goods sold 292,000
Gross profit 325,500
Operating expenses
Depreciation expense $ 27,750
Other expenses 139,400 167,150
Other gains (losses)
Loss on sale of equipment (12,125 )
Income before taxes 146,225
Income taxes expense 34,050
Net income $ 112,175


Additional Information on Year 2017Transactions

The loss on the cash sale of equipment was $12,125 (details inb).

Sold equipment costing $67,875, with accumulated depreciation of$37,125, for $18,625 cash.

Purchased equipment costing $103,375 by paying $44,000 cash andsigning a long-term note payable for the balance.

Borrowed $4,700 cash by signing a short-term note payable.

Paid $53,625 cash to reduce the long-term notes payable.

Issued 3,200 shares of common stock for $20 cash per share.

Declared and paid cash dividends of $51,500.

Problem 16-5AB Direct: Statement of cash flows LO P1,P3, P5

Required:
Prepare a complete statement of cash flows; report its operatingactivities according to the direct method.

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