50.1K

Verified Solution

Link Copied!

Effect of Transactions on Cash Flows State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $330,000 of bonds, on which there was $3,300 of unamortized discount, for $343,000. b. Sold 12,000 shares of $15 par common stock for $28 per share. c. Sold equipment with a book value of $66,200 for $95,300. d. Purchased land for $392,000 cash. e. Purchased a building by paying $61,000 cash and issuing a $120,000 mortgage note payable. f. Sold a new issue of $190,000 of bonds at 99. 9. Purchased 4,600 shares of $20 par common stock as treasury stock at $36 per share. h. Paid dividends of $1.50 per share. There were 32,000 shares issued and 5,000 shares of treasury stock. Effect Amount a b $ C. $ d. e. S 9 Free cash flow Dillin Inc. reported the following on the company's statement of cash flows in 20Y2 and 2011: 20Y2 2011 Net cash flow from operating activities $475,000 $456,400 Net cash flow used for investing activities (430,000) (378,000) Net cash flow used for financing activities (42,000) (59,000) Eighty percent of the net cash flow used for investing activities was used for the purchase of property, plant, and equipment. a. Determine Dillin's free cash flow for both years. 20Y2 2011 Free cash flow 45,000 X 78,400 X b. Has Dillin's free cash flow improved or declined from 20Y1 to 20Y2? Declined

Answer & Explanation Solved by verified expert

See Answer