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:
Cost of goods sold
Income tax expense
Gain on sale of investment
Cash Flows from Operating Activities:
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:
Investment in LT investments
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.
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:
Net income for 2019 was reported as $810.
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