Reference no: EM132626374

Questions -

Q1. Riverbed Company reported 2020 net income of $153,600. During 2020, accounts receivable increased by $14,530 and accounts payable increased by $9,844. Depreciation expense was $41,500.

Prepare the cash flows from operating activities section of the statement of cash flows.

Q2. Sage Corporation engaged in the following cash transactions during 2020.

Sale of land and building $199,200

Purchase of treasury stock 41,000

Purchase of land 42,200

Payment of cash dividend 87,800

Purchase of equipment 57,600

Issuance of common stock 154,800

Retirement of bonds 106,800

Compute the net cash provided (used) by investing activities.

Q3. Sunland Corporation engaged in the following cash transactions during 2020.

Sale of land and building $182,540

Purchase of treasury stock 44,300

Purchase of land 41,500

Payment of cash dividend 86,800

Purchase of equipment 60,100

Issuance of common stock 148,400

Retirement of bonds 101,100

Compute the net cash used (provided) by financing activities.

Q4. Sage Corporation engaged in the following cash transactions during 2020.

Sale of land and building $189,900 Purchase of treasury stock 47,600 Purchase of land 46,400 Payment of cash dividend 94,500 Purchase of equipment 62,100 Issuance of common stock 147,000 Retirement of bonds 107,200

Determine Sage's free cash flow, assuming that it reported net cash provided by operating activities of $407,520.

Q5. The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. Classify each of the transactions listed below as:

1. Operating activity-add to net income.

2. Operating activity-deduct from net income.

3. Investing activity.

4. Financing activity.

5. Reported as significant noncash activity

The transactions are as follows.

Transactions Classifications of Activities

(a) Issuance of common stock. select a classification

(b) Purchase of land and building. select a classification

(c) Redemption of bonds. select a classification

(d) Sale of equipment. select a classification

(e) Depreciation of machinery. select a classification

(f) Amortization of patent. select a classification

(g) Issuance of bonds for plant assets. select a classification

(h) Payment of cash dividends.

(i) Exchange of furniture for office equipment. select a classification

(j) Purchase of treasury stock. select a classification

(k) Loss on sale of equipment. select a classification

(l) Increase in accounts receivable during the year. select a classification

(m) Decrease in accounts payable during the year