What would be shown on the statement of cash flows for cash

Question

1. Walker Corporation conducted the following activities during 2001: (1) they sold 10,000 shares of their own stock for $19.00 per share; (2) they issued bonds for which they received $498,000; (3) they paid dividends to their stockholders totaling $81,000; (4) they sold a piece of equipment for $50,000 that they were carrying on their books for $20,000; (5) they earned net income of $140,000. What would be shown on the Statement of Cash Flows for "Cash from financing activities" based in the information above?

2. A firm's current ratio is 1.0, and its quick ration is 1.0. If its current liabilities are $13,300, what are its inventories?

3. The First National Bank has agreed to lend you $30,000 today, but you must repay $42,135 in 3 years. What rate is the bank charging you?

4. Brighton Corp bought an oil rig exactly 6 years ago for $116,000,000. Brighton depreciates oil rigs straight line over 10 years assuming no salvage value. (Straight line depreciation means that the yearly depreciation will be the purchase price of the oil rig divided by the number of years it will last, which is 10 years here. The rig was just sold to British Petroleum for $31,000,000. What Capital Gain/Loss will Brighton report on this transaction?

Answer 1

Make sure to properly consider the questions illustrated below and provide solution by applying the proper concepts and formulas to show the description. Q1. Walker Corporation performed the given activities throughout 2001: (a) they sold 10,000 shares of their own stock for $19.00 per share; (b) they issued bonds for which they acquired $498,000; (c) they paid dividends to their stockholders summing $81,000; (d) they sold a piece of equipment for $50,000 which they were carrying on their books for $20,000; (e) they earned total income of $140,000. Illustrate what would be illustrated on the Statement of Cash Flows for ‘Cash from financing activities’ on the basis of information above? 2) A firm's current ratio is 1.0 and its quick ration is 1.0. If its current liabilities are $13,300, determine its inventories? 3) The First National Bank has agreed to lend you $30,000 nowadays; however you should repay $42,135 in 3 years. Illustrate what rate is the bank charging you?