Question

On July 15, 2021, M.W. Morgan Distribution sold land for $32.0 million that it had purchased...

On July 15, 2021, M.W. Morgan Distribution sold land for $32.0 million that it had purchased in 2016 for $27.0 million.

Required:
What would be the amount(s) related to the sale that Morgan would report in its statement of cash flows for the year ended December 31, 2021, using the direct method? The indirect method?

Direct Method

($ in millions)
  

Indirect Method

($ in millions)
  
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Under direct method it comes directly in cash flow from invetsment activities : $32 million

Under indirect method :

reduce from net profit $5m to find correct cash from operating activities (as profit of $5m is included in net profit)

include in cash from investment activity : $32 million

------------------------------------------------------

Note

If you have any queries kindly post a comment, i will solve it earliest.

If you satisfied with my answer, kindly give a thumbs up, it will help to encourage me.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On July 15, 2018, M.W. Morgan Distribution sold land for $55.5 million that it had purchased...
On July 15, 2018, M.W. Morgan Distribution sold land for $55.5 million that it had purchased in 2013 for $40.0 million. What would be the amount(s) related to the sale that Morgan would report in its statement of cash flows for the year ended December 31, 2018, using the direct method? The indirect method?
On July 15, 2018, M.W. Morgan Distribution sold land for $52.5 million that it had purchased...
On July 15, 2018, M.W. Morgan Distribution sold land for $52.5 million that it had purchased in 2013 for $38.0 million. What would be the amount(s) related to the sale that Morgan would report in its statement of cash flows for the year ended December 31, 2018, using the direct method? The indirect method?
vDuring 2021 equipment was sold for $74,000. This equipment cost $112,000 and had a book value...
vDuring 2021 equipment was sold for $74,000. This equipment cost $112,000 and had a book value of $69,700. Accumulated depreciation for equipment was $323,300 at 12/31/20 and $306,200 at 12/31/21. Complete the cash flow statement below: (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Partial Statement of Cash Flows (Indirect Method)                                                          ...
Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,080 million...
Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,080 million on July 1, 2021, at a price of $1,060 million. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semi-annually on June 30 and December 31. Required: What would be the amount(s) related to the bonds that Agee would report in its statement of cash flows for the year ended December 31, 2021, if it uses the indirect...
Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,000 million...
Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,000 million on July 1, 2021, at a price of $990 million. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semi-annually on June 30 and December 31. What would be the amount(s) related to the bonds that Agee would report in its statement of cash flows for the year ended December 31, 2021, if it uses the direct method?
Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,900 million...
Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,900 million on July 1, 2021, at a price of $1,870 million. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semi-annually on June 30 and December 31. Required: Prepare the journal entry to record interest at the effective interest rate at December 31. What would be the amount(s) related to the bonds that Agee would report in its statement...
Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,080 million...
Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,080 million on July 1, 2021, at a price of $1,060 million. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semi-annually on June 30 and December 31. Required: What would be the amount(s) related to the bonds that Agee would report in its statement of cash flows for the year ended December 31, 2021, if it uses the indirect...
On December 31, 2020, Berclair Inc. had 300 million shares of common stock and 8 million...
On December 31, 2020, Berclair Inc. had 300 million shares of common stock and 8 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 54 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Nine million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $400 million. Required: Compute Berclair's earnings...
Digital Telephony issued 10% bonds, dated January 1, with a face amount of $41 million on...
Digital Telephony issued 10% bonds, dated January 1, with a face amount of $41 million on January 1, 2018. The bonds mature in 2028 (10 years). For bonds of similar risk and maturity the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Digital recorded the issue as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.):...
On December 31, 2015, Berclair Inc. had 460 million shares of common stock and 9 million...
On December 31, 2015, Berclair Inc. had 460 million shares of common stock and 9 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2016, Berclair purchased 48 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2016. Eight million treasury shares were sold on October 1. Net income for the year ended December 31, 2016, was $800 million. Required: Compute Berclair's earnings...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT