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.The following information was taken from the accounting records of Oak Corporation for the year ended December 31 : ?

$4,000,000                         Proceeds from issuance of preferred stock

       400,000              Dividends paid on preferred stock F

                   2,000,000        Bonds payable converted to common stock

                 500,000                   Payment for purchase of machinery

                     1,200,000            Proceeds from sale of plant building

                 300,000                2% stock dividend on common stock

                 200,000                           Gain on sale of plant building

The net cash flows from investing and financing activities that should be presented on

Oak's statement of cash flows for the year ended December31 are, respectively,

A. $700,000 and $3,600,000.

B. $700,000 and $3,300,000.

C. $900,000 and $3,900,000.

D. $900,000 and $3,600,000.

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Question ajoutée par Utilisateur supprimé
Date de publication: 2015/03/23
Tareq Obeidat
par Tareq Obeidat , Chief Accountant , Etmam International Co

Option A is the correct answer

manseer muhammed ali
par manseer muhammed ali , Accountant General , Royal Lighting L.L.C & Royal Furnishing LLC

The answer is Option  A. $, and $3,,.

Youssef Talaat CMA
par Youssef Talaat CMA , accountant , Galaxy industrial equipment trading L.L.C

cash inflow from investment activities =1,200,000-500,000 =700,000 

cash inflow from financing activities =4,000 -400 =3,600

Correct answer is A. $700,000 and $3,600,000.

Notes:  2,000,000 Bonds payable converted to common stock (A non cash transaction will not be considered in calculation of financing activities although will be disclosed as note ( footnotes)

 

300,0002% stock dividend on common stock has no effect  (non- cash)

 200,000  Gain on sale of plant building is already counted (subtracted from net income (operation section) 

Muhammad Ramzan Tufail  ACCA
par Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

(A) is the Correct Ans.

 

Operating -700,000

Financing -3,600,000

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