1-Steven is preparing the cash flow statement for Light Fixtures Inc. (LFI), a public company. Below is...
Question:
1-Steven is preparing the cash flow statement for Light Fixtures Inc. (LFI), a public company. Below is an extract of selected information from the company’s statement of financial position and statement of comprehensive income.
2020 | 2019 | |
Current portion of long-term debt | $30,000 | $60,000 |
Long-term debt | 790,000 | 850,000 |
Common shares | 140,000 | 160,000 |
Preferred shares | 35,000 | — |
Retained earnings | 1,431,000 | 1,205,000 |
Other information available:
- Interest paid was $48,000.
- During the year, LFI repurchased common shares for $29,000. No other shares were issued during the year.
- Net profit for the year was $275,000.
- LFI follows IFRS and reports interest paid and dividends paid as financing activities.
- There were no dividends payable at the end of 2019 or 2020.
What is the total cash flow related to financing activities for the year?
Question 20 options:
$181,000 cash outflow | |
$172,000 cash outflow | |
$163,000 cash outflow | |
$142,000 cash outflow |
2-The following information is from Direct to You Corp.’s (DYC) financial records for its year ended December 31, 2020:
Select statement of financial position information: | 2020 | 2019 | |
Investments in financial assets (at fair value through profit or loss [FVPL]) | 12,000 | 10,000 | |
Inventory | 575,000 | 498,000 | |
Property, plant, and equipment (PPE) | 1,984,000 | 1,396,000 | |
Less: accumulated depreciation | (650,400) | (487,000) | |
Copyright | 126,000 | 135,000 | |
Patents | 564,000 | 417,000 |
Select statement of comprehensive income information: | ||
Depreciation of property, plant, and equipment | (334,400) | |
Amortization of patents | (65,000) | |
Interest expense | (75,000) | |
Impairment loss — copyright | (9,000) | |
Gain on sale of PPE | 23,000 | |
Additional information:
- PPE that originally cost $570,000 was sold during the year.
- 100,000 common shares were issued in 2020 to acquire $450,000 of property, plant, and equipment.
- DYC is subject to IFRS.
What amount of net cash used in investing activities will DYC report on its statement of cash flows for its year ended December 31, 2020?
Question 19 options:
$433,000 cash outflow | |
$500,000 cash outflow | |
$498,000 cash outflow | |
$521,000 cash outflow |
Accounting Business Reporting For Decision Making
ISBN: 9780730302414
4th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver