Cooper\'s Hardware earned net income of $67,000 after deducting depreciation of

Question

Cooper's Hardware earned net income of $67,000 after deducting depreciation of $5,000 and all other expenses. Current assets decreased by $2,000, and current liabilities increased by $6,000 Cooper paid S9,000 of dividends. How much was Cooper's cash provided by operating activities? A. $80,000 5. B. S71,000 C. S64.000 D. $54,000 Which of the following transactions is not a financing activity of ABC Company? A. Purchased 500 shares of stock of XYZ Corporation B. Sold 1,000 shares of treasury stock C. Borrowed $50,000 from First American Bank D. Paid dividends of $8,000 The Plant Assets account of Stanley Coffee shows the following 6. 7. Plant Assets, Net Beg. Bal Acquisition450,000 58,000 Disposal End. Bal. 448,000 90,000 34,000 Depreciation Stanley Coffee sold plant assets at an $8,000 loss. Where on the statement of cash flows should Stanley Coffee report the sale of plant assets? How much should the business report for the sale? A. Cash flows from financing activities-Cash receipt of $50,000 B. Cash flows from investing activities-Cash receipt of $50,000 C. Cash flows from financing activities-Cash receipt of $66,000 D. Cash flows from investing activities-Cash receipt of $66.000

Explanation / Answer

Question - 5

Cash from operating activities = Net Income + depreciation + decrease in CA and + Increase in CL

67000 + 5000 + 2000 + 6000 = 80000 ............ Select - A

Question - 6

Purchase of stock of other company is an Investing activity and not financing activity.

So ......... Select - A

Question - 7

Account given in the question indicates......... book value of asset = 58000. As it is sold at a loss of 8000, Cash received = 58000 - 8000 = 50000

So select - B ......... Investing activity = 50000

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