Acc 220 Chapter 12 Homework

2 Quizzes 10 Questions each .

Chapter 12 Homework – Student Templates – 7th Edition
M 12 – 6
Required: Compute cash flows from investing activities under GAAP.
Cash collections from customers
$800
Purchase of used equipment
$200
Depreciation expense
$200
Sale of investments
$450
Dividends received
$100
Interest received
$200
Investing Activities
Purchase of used equipment
($200)
Sale of investments
$450
Net cash provided by (used in) investing activities
$250
M 12 – 7
Required: Compute cash flows from financing activities under GAAP.
Purchase of investments
$ 250
Dividends paid
$1,200
Interest paid
$400
Additional borrowing from bank
$2,800
Financing Activities
Net cash provided by financing activities
Chapter 12 Homework – ACCT 220 7th Edition
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M 12 – 14
Prestige Manufacturing Corporation reports the following items in its statement of cash flows.
Required:
Based on the direct method, determine if the item is an/a operating activities (O), investing activities
(I), or financing activities (F) section of the statement or use (NA) doesn’t appear.
I
1. Payment for equipment purchase.
F
2. Repayments of bank loan.
3. Dividends paid.
4. Proceeds from issuance of stock.
5. Interest paid.
6. Receipts from customers.
Exercise 12 – 1
NIKE, Inc., is the best-known sports shoe, apparel, and equipment company in the world because of
its association with athletes such as LeBron James, Roger Federer & Madison Keys.
Required:
Based on the indirect method, determine if the item is an/a operating activities (O), investing
activities (I), or financing activities (F) section on the st. of cash flows. Use (NA) if it doesn’t appear.
F
1. Additions to long-term debt.
O
2. Depreciation.
3. Additions to equipment.
4. Increase (decrease) in notes payable.
5. (Increase) decrease in other current assets.
6. Cash received from disposal of equipment.
7. Reductions in long-term debt.
8. Issuance of stock.
9. (Increase) decrease in inventory.
O
10. Net income.
Chapter 12 Homework – ACCT 220 7th Edition
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Exercise 12 – 18
Required: Is the item reported on the statement of cash flows using the direct and indirect method.
Direct
Method
Indirect
Method
X
1.
Net income
2.
Receipts from customers
3.
Accounts receivable increase or decrease
4.
Payments to suppliers
5.
Inventory increase or decrease
X
6.
Accounts payable increase or decrease
X
7.
Payments to employees
8.
Salaries and wages payable, increase or decrease
9.
Depreciation expense
10.
Cash flows from operating activities
11.
Cash flows from investing activities
12.
Cash flows from financing activities
13.
Net increase or decrease in cash during the period
X
X
X
X
PA 12 – 1
Required: Determine if the items is an/a operating (O), investing (I) or financing activity (F).
Item
Activity
Increase or Decrease
1.
I
Decrease
Transaction
Bought used equipment for cash.
2.
Paid cash to purchase new equipment.
3.
Declared and paid cash dividends to stockholders.
4.
Collected payments on account from customers.
5.
O
Decrease
6.
7.
8.
Recorded and paid interest on debt to creditors.
Repaid principal on loan from bank.
O
Decrease
Prepaid rent for the following period.
Made payment to suppliers on account.
Chapter 12 Homework – ACCT 220 7th Edition
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