Questions 1 – 3 require you to provide certain information; write the answer in the space…

Financing and Investing Activities Spring 2020 – Final Exam Questions 1 – 3 require you to provide certain information; write the answer in the space provided. Show all work on supporting documentation that is requiredto be submitted at the end of the exam. 1. Prepare a schedule, using the template provided, computing net cash from operations for the year ended December 31, 2019 using BOTH the indirect and direct methods. The following selected information is available: December 31 2019 2018 Accounts receivable 1,750 1,300 Inventory 1,600 1,900 Prepaid rent 200 250 Accounts payable 1,200 900 Wages payable 100 200 Accrued liabilities 125 125 Sales 6,900 Cost of goods sold 4,700 Rent expense 300 Wages expense 450 Depreciation expense 30 Interest expense 150 Income tax expense 540 Gain on sale of investment 80 Cash Flows from Operating Activities: Net income Adjustments to reconcile net income to net cash flows: Net cash flows from operating activities Cash Flows from Operations: Net cash flows from operations 2. The ABC Corporation provided the following partial list of accounts, balances and activities for 2019: December 31, 2019 2018 Investment in LT investments 1,300 1,420 Plant assets 1,900 1,700 Accumulated depreciation 1,200 1,170 ABC’s income statement reported a $80 gain on sale of LT investments. The company did not sell any plant assets, but $70 of common stock was issued in exchange for plant assets. Depreciation expense for the year was $30. Purchases of additional plant assets were cash transactions. Required: Prepare the investing activities section of the statement of cash flows in the template below: Cash Flows from Investing Activities: Net cash flows from investing activities 3. The XYZ Corporation provided the following partial list of accounts, balances and additional information for 2019: December 31, 2019 2018 Bonds payable 1,550 1,400 Dividends payable 400 450 Common stock 120 100 APIC -CS 1,780 1,600 Retained earnings 2,450 1,900 Net income for 2019 was reported as $810. Required: Prepare the financing activities section of the statement of cash flows in the template below: Cash Flows from Financing Activities: Net cash flows from financing activities </pclass=”p1″>

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