McGrew_MBA 733 Week 3 Problems

McGrew_MBA 733 Week 3 Problems - 1 $2,000,000 piece of...

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1. $2,000,000 piece of equipment is purchased with the proceeds of a new 12 month note It will have no impact as there is no cash flow 2. Mortgage bonds are retired with $790,000 cash and the proceeds of an issue of 150,000 shares of c There will be cash outflow on the retirement of the mortgage bonds. This will be shown as cash outflow There will be cash inflow on the issuance of the common stock. This will be shown as cash inflow from 3. $2,000,000 of inventory is purchased on account. It will have no impact as there is no cash flow 4. A dividend of $0.25 per share is declared o the 750,000 outstanding shares. There will be cash outflow on the dividend. This will be shown as cash outflow of financing activities an 5. A piece of machinery is sold for $1,500,000 cash. When originally purchased it cost Anwat $5,000,0 There will be cash inflow on the sale of machinery of $1500000. This will be shown as cash inflow from
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common stock. w of financing activities of $790000 m financing activities. nd the amount is 750000*.25= $187500 000, and currently has $2,500,000 of accumulated depreciation. m investing activities
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Trish McGrew Problem 11-4 Statement of Cash Flows- Indirect Method For the Year Ended December 31, 2010 Cash Flows from Operating Activities: Net Income ($11,000)
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