Effect of Transactions on Cash Flows
State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows:
a- Retired $300,000 of bonds, on which there was $3,000 of unamortized discount, for $312,000.
b- Sold 7,000 shares of $30 par common stock for $57 per share.
c- Sold equipment with a book value of $62,200 for $89,600.
d- Purchased land for $447,000 cash.
e- Purchased a building by paying $91,000 cash and issuing a $120,000 mortgage note payable.
f- Sold a new issue of $200,000 of bonds at 99.
g- Purchased 3,000 shares of $45 par common stock as treasury stock at $88 per share.
h- Paid dividends of $2.10 per share. There were 25,000 shares issued and 4,000 shares of treasury stock.
Effect | Amount | |
a. | $ | |
b. | $ | |
c. | $ | |
d. | $ | |
e. | $ | |
f. | $ | |
g. | $ | |
h. | $ |
Effect |
Amount |
|
a. |
Cash Payment |
$ 312,000.00 |
b. |
Cash Receipt |
$ 399,000.00 |
c. |
Cash Receipt |
$ 89,600.00 |
d. |
Cash Payment |
$ 447,000.00 |
e. |
Cash Payment |
$ 91,000.00 |
f. |
Cash Receipt |
$ 198,000.00 |
g. |
Cash Payment |
$ 264,000.00 |
h. |
Cash Payment |
$ 44,100.00 |
Working
Effect |
Amount |
|
a. |
Cash Payment |
312000 |
b. |
Cash Receipt |
=7000*57 |
c. |
Cash Receipt |
89600 |
d. |
Cash Payment |
447000 |
e. |
Cash Payment |
91000 |
f. |
Cash Receipt |
=200000/100*99 |
g. |
Cash Payment |
=3000*88 |
h. |
Cash Payment |
=+(25000-4000)*2.1 |
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