Becker_Review_Problems_Week_6- Ch 23

Becker_Review_Problems_Week_6- Ch 23 - BECKER REVIEW...

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Unformatted text preview: BECKER REVIEW PROBLEMS Week Six NEW QUESTION The following is taken from the Becker CPA Review with permission: In preparing the cash flow statement for the year ended December 31, 2004, Stant Co. collected the following data: Gain on sale of equipment $ ( 6,000) Proceeds from sale of equipment 10,000 Purchase of B.R., Inc. bonds (par value $200,000) (180,000) Amortization of bond discount 2,000 Dividends declared ( 45,000) Dividends paid ( 38,000) Proceeds from sale of Treasury stock (carrying amount $65,000) 75,000 In its December 31, 2004, statement of cash flows, what amount should Stant report as net cash used in investing activities? a. $ 170,000 b. $ 176,000 c. $ 188,000 d. $ 194,000 Remember to show calculations! Taken from Becker CPA Review with permission -- company name and dates changed F7/67-CPA-01224 Solution: Choice a is correct. Investing activities include acquisitions and sales of long-term assets or investment assets. Cash used equal $170,000 ($180,000 paid less $10,000 received from the sale of equipment). SFAS 95 para. 15 NEW QUESTION...
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Becker_Review_Problems_Week_6- Ch 23 - BECKER REVIEW...

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