Chapter 23 STATEMENT OF CASH FLOWS

Chapter 23 STATEMENT OF CASH FLOWS - Chapter 23: STATEMENT...

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Chapter 23: STATEMENT OF CASH FLOWS Use the following information for questions 1 and 2. A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the balance. 1. In a statement of cash flows, what amount is included in investing activities for the above transaction? a. Cash payment b. Acquisition price c. Zero d. Mortgage amount 2. In a statement of cash flows, what amount is included in financing activities for the above transaction? a. Cash payment b. Acquisition price c. Zero d. Mortgage amount Use the following information for questions 3 and 4. Kerwin Corp.'s transactions for the year ended December 31, 2008 included the following: Purchased real estate for $550,000 cash which was borrowed from a bank. Sold available-for-sale securities for $500,000. Paid dividends of $600,000. Issued 500 shares of common stock for $250,000. Purchased machinery and equipment for $125,000 cash. Paid $450,000 toward a bank loan. Reduced accounts receivable by $100,000. Increased accounts payable $200,000. 3. Kerwin's net cash used in investing activities for 2008 was
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This note was uploaded on 08/22/2010 for the course ACC accounting taught by Professor Dr.johnwilson during the Spring '09 term at University of Florida.

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Chapter 23 STATEMENT OF CASH FLOWS - Chapter 23: STATEMENT...

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