Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. luz azul, llc is a merchandiser of blue light bloc

Luz Azul, LLC is a merchandiser of blue light blocking glasses. The company began 2019...

80.2K

Verified Solution

Question

Accounting

Luz Azul, LLC is a merchandiser of blue light blocking glasses. The company began 2019 with $10,000 in cash and reported net income of $6,700 on its 2019 income statement. During the year a loss of $250 was reported on the cash sale of a piece of equipment with a book value of $1,000. A new piece of equipment was purchased at a cost of $8,500 to replace the equipment that was sold. The company paid $1,500 from its available cash balance to purchase the equipment and took out a cash long-term note payable from its bank for the remaining balance. All dividends declared during 2019 were paid in 2019. There was not a balance in the dividends payable account at the beginning of the year. There was a $250 net decrease in retained earnings during the year. Given a reported positive cash flow of $500 from its operating activities during the year, which of the following statements is incorrect?

A. The companys net cash flows from financing activities were $50.

B. The ending cash reported on the balance sheet was $2,800.

C. The company operated within its means during the year.

D. The companys cash decreased by $7,200 during the year.

E. The companys investing activities used $750 more in cash than they provided

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students