Changes in Current Operating Assets and Liabilities Blue Circle Corporation's comparative balance sheet for current assets...

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Changes in Current Operating Assets and Liabilities Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $26,800 $23,500 Inventory 59,700 67,800 Accounts payable 19,500 25,000 Dividends payable 23,000 21,000 Adjust net income of $93,900 for changes in operating assets and liabilities to arrive at net cash flows from operating activities. Determining Cash Flows from (Used for) Operating Activities Yeoman Inc. reported the following data: Net income Depreciation expense Loss on disposal of equipment Increase in accounts receivable Increase in accounts payable $265,400 76,000 24,900 27,700 10,600 Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Yeoman Inc. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Net cash flows from operating activities $ Land Transactions on the Statement of Cash Flows Veteran Corporation purchased land for $407,000. Later in the year, the company sold a different piece of land with a book value of $208,000 for $235,000. How are the effects of these transactions reported on the statement of cash flows? Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank. Transactions Gain or loss on sale of land Cash received from sale of land Cash paid for purchase of land Action Amount Added to net income Deducted from net income No effect Part of cash flows from financing activities Part of cash flows from investing activities Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $320,000 of bonds, on which there was $3,200 of unamortized discount, for $333,000. b. Sold 7,000 shares of $10 par common stock for $23 per share. c. Sold equipment with a book value of $63,900 for $92,000. d. Purchased land for $453,000 cash. e. Purchased a building by paying $89,000 cash and issuing a $120,000 mortgage note payable. f. Sold a new issue of $160,000 of bonds at 99. g. Purchased 2,400 shares of $45 par common stock as treasury stock at $84 per share. h. Paid dividends of $1.90 per share. There were 34,000 shares issued and 5,000 shares of treasury stock. Effect Cash payment b. $ Cash receipt c. d. e. f. g. h. Amount Free Cash Flow Lovato Motors Inc. has net cash flows from operating activities of $705,000. Cash flows used for investments in property, plant, and equipment totaled $436,000, of which 75% of this investment was used to replace existing capacity. Determine the free cash flow for Lovato Motors Inc. Changes in Current Operating Assets and Liabilities Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $26,800 $23,500 Inventory 59,700 67,800 Accounts payable 19,500 25,000 Dividends payable 23,000 21,000 Adjust net income of $93,900 for changes in operating assets and liabilities to arrive at net cash flows from operating activities. Determining Cash Flows from (Used for) Operating Activities Yeoman Inc. reported the following data: Net income Depreciation expense Loss on disposal of equipment Increase in accounts receivable Increase in accounts payable $265,400 76,000 24,900 27,700 10,600 Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Yeoman Inc. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Net cash flows from operating activities $ Land Transactions on the Statement of Cash Flows Veteran Corporation purchased land for $407,000. Later in the year, the company sold a different piece of land with a book value of $208,000 for $235,000. How are the effects of these transactions reported on the statement of cash flows? Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank. Transactions Gain or loss on sale of land Cash received from sale of land Cash paid for purchase of land Action Amount Added to net income Deducted from net income No effect Part of cash flows from financing activities Part of cash flows from investing activities Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $320,000 of bonds, on which there was $3,200 of unamortized discount, for $333,000. b. Sold 7,000 shares of $10 par common stock for $23 per share. c. Sold equipment with a book value of $63,900 for $92,000. d. Purchased land for $453,000 cash. e. Purchased a building by paying $89,000 cash and issuing a $120,000 mortgage note payable. f. Sold a new issue of $160,000 of bonds at 99. g. Purchased 2,400 shares of $45 par common stock as treasury stock at $84 per share. h. Paid dividends of $1.90 per share. There were 34,000 shares issued and 5,000 shares of treasury stock. Effect Cash payment b. $ Cash receipt c. d. e. f. g. h. Amount Free Cash Flow Lovato Motors Inc. has net cash flows from operating activities of $705,000. Cash flows used for investments in property, plant, and equipment totaled $436,000, of which 75% of this investment was used to replace existing capacity. Determine the free cash flow for Lovato Motors Inc.

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