Question 16.5: Land Transactions on the Statement of Cash Flows Alpha Corpo...

Financial Accounting

Land Transactions on the Statement of Cash Flows

Alpha Corporation purchased land for $125,000. Later in the year, the company sold a different piece of land with a book value of $165,000 for $200,000. How are the effects of these transactions reported on the statement of cash flows?

The "Step-by-Step Explanation" refers to a detailed and sequential breakdown of the solution or reasoning behind the answer. This comprehensive explanation walks through each step of the answer, offering you clarity and understanding.
Our explanations are based on the best information we have, but they may not always be right or fit every situation.

The blue check mark means that this solution has been answered and checked by an expert. This guarantees that the final answer is accurate.
Learn more on how we answer questions.

This Question has been Answered.

Already have an account?

Related Answered Questions

Question: 16.2

Adjustments to Net Income—Indirect Method Omni Corporation’s accumulated depreciation increased by $12,000, while $3,400 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income ...

Verified Answer:

Net income . . . . . . . . . . . . . . . . . . . ....

Question: 16.8

Free Cash Flow Omnicron Inc. reported the following on the company’s cash flow statement in 20Y8 and 20Y7: Seventy-five percent of the net cash flow used for investing activities was used to replace existing capacity. a. Determine Omnicron’s free cash flow. b. Has Omnicron’s free cash flow b. Has ...

Verified Answer:

a. 20Y8 20Y7 Net cash flow from operating a...

Question: 16.7

Cash Payments for Merchandise—Direct Method The cost of merchandise sold reported on the income statement was $145,000. The accounts payable balance increased by $4,000, and the inventory balance increased by $9,000 over the year. Determine the amount of cash paid for merchandise. ...

Verified Answer:

Cost of merchandise sold . . . . . . . . . . . . ....

Question: 16.6

Cash Received from Customers—Direct Method Sales reported on the income statement were $350,000. The accounts receivable balance declined $8,000 over the year. Determine the amount of cash received from customers. ...

Verified Answer:

Sales . . . . . . . . . . . . . . . . . . . . . . ...

Question: 16.4

Cash Flows from Operating Activities—Indirect Method Omicron Inc. reported the following data: Net income $120,000 Depreciation expense 12,000 Loss on disposal of equipment 15,000 Increase in accounts receivable 5,000 Decrease in accounts payable 2,000 Prepare the Cash flows from operating ...

Verified Answer:

Cash flows from operating activities: Net income ....

Question: 16.3

Changes in Current Operating Assets and Liabilities—Indirect Metho Victor Corporation’s current operating assets and liabilities from the company’s comparative balance sheet were as follows: Adjust Victor’s net income of $70,000 for changes in current operating assets and liabilities to arrive at ...

Verified Answer:

Net income . . . . . . . . . . . . . . . . . . . ....

Question: 16.1

Classifying Cash Flows Identify whether each of the following would be reported as an operating, investing, or financing activity in the statement of cash flows: a. Purchase of patent d. Cash sales b. Payment of cash dividend e. Purchase of treasury stock c. Disposal of equipment f. Payment of ...

Verified Answer:

a. Investing d. Operating...