29) Financing activities include
a) acquiring investments.
b) lending money.
c) acquiring long-lived assets.
d) issuing debt.
31) Which of the following increases cash?
a) depreciation expense
b) borrowing money by issuing a six-month note
c) the declaration of a cash dividend
d) acquisition of treasury stock
32) Which of the following would not be classified as an operating activity?
a) interest expense
b) income taxes
c) payment of dividends
d) selling expenses
29) Financing activities include
a) acquiring investments.
b) lending money.
c) acquiring long-lived assets.
d) issuing debt.
31) Which of the following increases cash?
a) depreciation expense
b) borrowing money by issuing a six-month note
c) the declaration of a cash dividend
d) acquisition of treasury stock
32) Which of the following would not be classified as an operating activity?
a) interest expense
b) income taxes
c) payment of dividends
d) selling expenses
Related questions
Erroneous Statement of Cash Flows
Ryan Company's bookkeeper prepared the following 2016 statement of cash flows:
| Flows of Cash Statement December 31, 2016 | |||
| Sources (Inflows) of Cash | |||
| Net Source from Operations | |||
| Net income | $47,800 | ||
| Add: Cash receipt from sale of land | 6,500 | ||
| Inflow from issuing 10% bonds payable | 25,000 | ||
| Depreciation expense | 13,200 | ||
| Reduction in inventory | 1,900 | ||
| Less: Outflow to buy equipment | (16,400) | ||
| Increase in prepaid expenses | (700) | ||
| Cash (principal) paid on long-term note | (9,500) | ||
| ordinary gain | (2,000) | ||
| Total source from operations | $65,800 | ||
| Other Sources (Inflows) of Cash | |||
| Loss on sale of land | $2,300 | ||
| Increase in accounts payable | 1,000 | ||
| Cash from issuing preferred stock | 38,700 | ||
| Patent amortization expense | 2,100 | ||
| Total other sources of cash | 44,100 | ||
| Sources (Financing) Not Affecting Cash | |||
| Issuance of common stock for patent | 11,000 | ||
| Total inflows of cash | $120,900 | ||
| Uses (Outflows) of Cash | |||
| To purchase building | $(62,000) | ||
| Increase in accounts receivable | (7,800) | ||
| For acquiring marketable securities | (7,100) | ||
| Decrease in income taxes payable | (1,400) | ||
| Total uses of cash | (78,300) | ||
| Uses (Investing) Not Affecting Cash | |||
| Acquisition of patent by issuing common stock | (11,000) | ||
| Net inflow before dividends | $ 31,600 | ||
| Less: Cash dividends | (24,000) | ||
| Net increase in cash | $7,600 | ||
| Cash, January 1, 2016 | 15,300 | ||
| Cash, December 31, 2016 | $22,900 | ||
After a thorough investigation, you have determined that the amounts of the items listed on the statement are correct. However, you notice several items that are incorrectly classified and reported.
Required
Prepare a corrected 2016 statement of cash flows for the Ryan Company. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.
Operating Activities
________________ __________
Adjustment for non cash income items:
________________ __________
________________ __________
________________ __________
________________ __________
Adjustments for cash flow effects from working capital items:
________________ __________
________________ __________
________________ __________
________________ __________
________________ __________
Net cash provided by operating activities ____________
Investing Activities:
________________ __________
________________ __________
________________ __________
________________ __________
Net cash used for investing activities _________
Financing Activities:
________________ __________
________________ __________
________________ __________
________________ __________
Net cash provided by financing activies _________
Net increase in cash _________
Cash, january 1, 2016 _________
Cash, december 31, 2016 _________
Investing and Financing Activities not Affecting Cash
Investing Activities:
Acquistion of patent by issuing commons stock ______________
Financing Activities:
Issuance of common stock for patent ____________
