Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Finance & Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=411)
-   -   Operating Activities relating to net cash (https://www.askmehelpdesk.com/showthread.php?t=221820)

  • May 31, 2008, 01:32 PM
    SuenaNAZ
    Operating Activities relating to net cash
    We have several students puzzled by this example: please help to find the answer?

    Of these items which would effect the operating activities section of a net cash report

    Cash dividends of $600,000 were declared and paid in 2008
    Equipment costing $1,000,000 and having a carrying amount of $320,000 was sold in 2008 for $360,000
    Long term investment sold in 2008 $320,000, no other activities made within the year
    20,000 shares of common stock were issued in 2008 for $25 a share
    Short-term investments consist of treasury bills maturing on 6/30/09


    Net income was given for 2008 at $1,500,000

    Answer would be a) 1,500,000 b) 2,120,000 c) 2,080,000 or d) 2,160,000

    Any help would be greatly appreciated
  • May 31, 2008, 08:39 PM
    morgaine300
    Where are you at? I'm assuming a "net cash report" is what I'd call a cash flow statement.

    I also don't understand how the question can ask which of the following affect the operating activities, and the choices of answers are dollar amounts. Huh?

    None of the activities are operating.

    Here's another of my posts with some explanation of the differences between activities:
    https://www.askmehelpdesk.com/financ...ing+activities

  • All times are GMT -7. The time now is 09:31 AM.