答案和详解如下： 1.Which of the following should be classified as cash flows from investing (CFI) by Elegant, Inc., which reports under U.S. GAAP? A) Elegant's payment to purchase equipment to be used in its business. B) Interest received by Elegant, Inc. on a bond Elegant, Inc. purchased from an outside investor. C) Dividends received by Elegant, Inc. from an investment in another firm. D) Interest paid to the bank that financed Elegant's investment in a shopping mall. The correct answer was A) Purchases of equipment are considered to be cash flows from investing. Interest paid or received and dividends received are considered to be cash flows from operations under U.S. GAAP. 2.Holden Company’s fixed asset footnote included the following: § During 20X7, Holden sold machinery for a gain of $100,000. The machinery had an original cost of $500,000 and its accumulated depreciation was $240,000. § At the end of 20X7, Holden purchased machinery at a cost of $1,000,000. Holden paid $400,000 cash. The balance was financed by the seller at 8 percent interest. § Depreciation expense was $2,080,000 for the year ended 20X7. Calculate Holden’s cash flow from investing activities for the year ended 20X7. A) $40,000 outflow. B) $360,000 inflow. C) $300,000 outflow. D) $60,000 inflow. The correct answer was A) Given the gain of $100,000 and book value of the machinery sold of $260,000 ($500,000 original cost – $240,000 accumulated depreciation), the proceeds from the sale of the machinery were $360,000 ($100,000 gain + $260,000 book value). For 20X7, CFI was an outflow of $40,000 ($360,000 sale proceeds – $400,000 machinery purchase). The $600,000 financed by the seller is a non-cash transaction and is reported in the notes to the cash flow statement. 3.In preparing its cash flow statement for the year ended December 31, 2004, Giant Corporation collected the following data: Gain on sale of equipment | $6,000 | Proceeds from sale of equipment | 10,000 | Purchase of Zip Co. bonds for | 180,000 (maturity value $200,000) | Amortization of bond discount | 2,000 | Dividends paid | (75,000) | Proceeds from sale of Treasury stock | 38,000 |
In its December 31, 2004, statement of cash flows, what amounts should Giant report as net cash used in investing activities and net cash used in financing activities?
| Investing Activities | Financing Activities |
A) $178,000 -$38,000 B) $170,000 $37,000 C) $170,000 -$38,000 D) $178,000 -$37,000 The correct answer was B) Investing Activities:
$10,000 – $180,000 = -$170,000 cash flow from investing or $170,000 used Financing Activities:
$38,000 - $75,000 = -$37,000 cash flow from financing or $37,000 used Note that the question asked for net cash used therefore this is a positive cash outflow. 4.An examination of the cash receipts and payments of Xavier Corporation reveals the following: Cash paid to suppliers for purchase of merchandise | $5,000 | Cash received from customers | 14,000 | Cash paid for purchase of equipment | 22,000 | Dividends paid | 2,000 | Cash received from issuance of preferred stock | 10,000 | Interest received on short-term investments | 1,000 | Wages paid | 4,000 | Repayment of loan to the bank | 5,000 | Cash from sale of land | 12,000 |
Xavier's cash flow from financing (CFF) and cash flow from investing (CFI) will be:
A) $3,000 $12,000 B) $10,000 $12,000 C) $3,000 -$10,000 D) $10,000 -$10,000 The correct answer was C) Cash flow relating to financing activities includes dividends paid, cash received from preferred stock, and repayment of loan. –2,000 + 10,000 + –5,000 = 3,000.
Cash flow relating to investing activities includes cash paid for equipment and cash from sale of land. -22,000 + 12,000 = -10,000. 5.An examination of the cash receipts and payments of Xavier Corporation reveals the following: Cash paid to suppliers for purchase of merchandise | $5,000 | Cash received from customers | 14,000 | Cash paid for purchase of equipment | 22,000 | Dividends paid | 2,000 | Cash received from issuance of preferred stock | 10,000 | Interest received on short-term investments | 1,000 | Wages paid | 4,000 | Repayment of loan to the bank | 5,000 | Cash from sale of land | 12,000 |
Xavier’s reported cash flow from operations will be: A) -$6,000. B) $6,000. C) -$5,000. D) $5,000. The correct answer was B) Cash flow relating to operating activities includes cash paid to suppliers, cash received from customers, interest received, and wages paid. –5,000 + 14,000 + 1,000 + –4,000 = 6,000. |
发表于 2008-4-11 17:14
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