[jeff]

I’ve had a few requests for April/May Study Groups…March will be here before you know it.

In order to take an early April exam, you should begin studying…now. 🙂

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[NJPRU]

I seriously hope no one counts on me at work tomorrow. Definitely just made a second cup of coffee and will attempt to pull an all night like the good ole college days. lol

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Anonymous]

Green Co had the following transactions:

Cash proceeds from sale of investment in Blue Co $75000

Dividends Received 10,500

Common Stock Purchased from Brown Co 38,000

What amount should Green recognize as net cash from investing activities in its statement of CF?

The answer is 75,000-38,000=37,00

Why would common stock purchased be included in investing activities? Shouldn't be in financing? Or would it constitute a security, which falls under investing.

[NJPRU]

Operating:

Dividends Received

Gain on sale of Equipment

Interest Received

Investing:

Purchase of equipment

Cash payments for marketable securities

Cash receipts from the sale of equipment

Financing:

Cash proceeds of bonds to pay for equipment

Cash proceeds of shares

Dividends Paid

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Anonymous]

Financing I would be monies you are trying to generate for your own investing

Operating is investing in others.

So I think that Common stock is like investing in another company. So won't be financing.

[NJPRU]

I think the best way of looking at it is “acquiring” an investment in X which is attributable to investing. financing is more so long term debt or liabilities.

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Anonymous]

Ok that makes a little more sense. I was just thinking of Financing as being owners equity & Long term liabilities so I automatically assumed stock would go there. BUT stock issuance would be an outflow from financing, right?

[NJPRU]

when you issue stock you receive cash therefore it would an inflow to financing and not an outflow.

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Anonymous]

Lol….right. Ahh. My mind is failing me

[NJPRU]

You got this MustPass 😛

I have faith in you. You'll do great!

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Anonymous]

Going to be a long night…. sigh. My head hurts

Jamming away to some Bollywood Music!

[jrosen92770]

Jamming to Celia Cruz La Vida es Un Carnival…..Helps keep me alert. Shooting for 1am.

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[NJPRU]

1am it is for me too.. but I have to be up 5 hours later lol. :-O

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Anonymous]

@jrosen whats your study plan for the next few days?

[Guti]

Jrosen, no duermes maestro?

FAR-84
AUD-
REG-
BEC-

[jrosen92770]

Amanda – I am doing questions and going over index cards. Also, doing a few SIMS. What about you?

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[Author]

Replies