Zenith Corporation sells some of its used store fixtures. The acquisition cost of the fixtures is $13,875, and the accumulated depreciation on these fixtures is $7,063 at the time of sale. The fixtures are sold for $4,744. The value of this transaction in the investing section of the statement of cash flows is
a.$2,068
b.$13,875
c.$6,812
d.$4,744
Cash dividends of $83,151 were declared during the year. Cash dividends payable were $9,322 at the beginning of the year and $14,518 at the end of the year. The amount of cash for the payment of dividends during the year is
a.$83,151
b.$97,669
c.$77,955
d.$73,829
A building with a book value of $46,685 is sold for $58,312 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as follows:
an increase of $46,685 from investing activities and an addition to net income of $11,627
an increase of $46,685 from investing activities
an increase of $58,312 from investing activities
an increase of $58,312 from investing activities and a deduction from net income of $11,627
Solution 1:
Value of the transaction in the investing section = Sale value of the fixtures = $4,744
Hence option "d" is correct.
Solution 2:
amount of cash for the payment of dividends = Dividend declared + beginning dividend payable - Ending dividend payable
= $83,151 + $9,322 - $14,518 = $77,955
Hence option "c" is correct.
Solution 3:
Gain on sale of building = $58312 - $46685 = $11,627 (Gain will be deducted from net income).
Sale value = $58,312 (Increase in investing activity)
Hence "an increase of $58,312 from investing activities and a deduction from net income of $11,627" is correct.
Last option is correct.
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