FAR Study Group Q2 2016 - Page 78

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  • April 30, 2016 at 6:48 pm #764826
    Claudia408
    Participant

    Hmmm maybe I'll include the entire problem…. it asked for financing but was not included in the calc.

    The differences in Beal Inc.'s Balance Sheet accounts at December 31, 20×4 and 20×3, are presented below:
    Liabilities and Stockholders' Equity

    Dividends payable 160,000
    Short-term bank debt 325,000
    Long-term debt 110,000
    Common Stock, $10 par 100,000

    The following additional information relates to 20×4: net income was $790,000; cash dividends of $500,000 were declared; building costing $600,000, with a carrying amount of $350,000, was sold for $350,000; equipment costing $110,000 was acquired through the issuance of long-term debt; and a long-term investment was sold for $135,000. There were no other transactions affecting long-term investments. 10,000 shares of common stock were issued for $22 a share. In Beal's 20×4 Statement of Cash Flows, Net cash provided by financing activities was?

    BEC - 75 (3x)
    AUD - 78 (3x)
    REG - 67, 66, Aug 1
    FAR - 54, Sept 8

    April 30, 2016 at 6:49 pm #764827
    MaLoTu
    Participant

    @sunshine – the AP question, that makes sense! I was trying to figure out why the heck it went to 900k, but they had to get the debit out of there. I agree it is an asset, most likely a prepaid.

    April 30, 2016 at 6:56 pm #764828
    MaLoTu
    Participant

    @Claudia – it appears only 2 of those are financing activities and I got net cash outflow of 280k … have no idea if that is right … I am also not sure what category that LT investment sold for 135k fits into

    I got (280) by 220k inflow from stock issuance less 500K for the dividends declared because I thought they used declared. If they use payable then there is a 60k net inflow

    April 30, 2016 at 7:01 pm #764829
    lolo
    Member

    @MaLoTu, yea. Btw, how many exams are left for you?

    My Nick name is sunshine, but the fact is I have not been in touch with it since I started this CPA exam! IT HURTS

    AUD - ✔ Passed Becker self study!
    BEC - ✔ Passed Becker self study!
    FAR - ✔ Passed Becker self study!
    REG - TBD

    April 30, 2016 at 7:07 pm #764830
    Spartans92
    Participant

    Why do I always think your questions are harder Claudia. I always got operating cash flow stuff in becker. :/

    Transaction: inflow 10,000 *22 = 220,000
    I dont think the dividend declared is financing though because it isn't paid yet? IDK could be wrong because when you declared it becomes a payable..

    BEC- PASS

    April 30, 2016 at 7:07 pm #764831
    MaLoTu
    Participant

    @sunshine – I hope this is my last one! I will know for sure on May 5 if I passed BEC. I have struggled with FAR and BEC, I think it is because of the amount of concepts. I took BEC 3 times and this will be my third time for FAR =( I got a 70 last time at FAR so I feel I have a really good general understanding of everything. How about you?

    April 30, 2016 at 7:09 pm #764832
    Spartans92
    Participant

    Good Luck hope u hear good news on May 5 Malo Tu! I so want to be done with these exams already. Feel like more I look at FAR I wanna burn the book. If I pass I will sure Burn it!! Maybe not… 🙂

    BEC- PASS

    April 30, 2016 at 7:13 pm #764833
    MaLoTu
    Participant

    lol, Spartans, I still have all my books, I cant part with them. It feels like a constant state of limbo! Once I am done with all the exams the books are G O N E!

    April 30, 2016 at 7:15 pm #764834
    Spartans92
    Participant

    Here goes the problem again… Cant see anything 🙁
    Fixed… Yea Ill prob wait until I get all the pass! then I will burn my NOTES instead. Think the books are actually useful, right?

    BEC- PASS

    April 30, 2016 at 7:19 pm #764835
    lolo
    Member

    @MaLoTu, Hey good luck with your exam, I am sure you will do it and be a CPA soon! Well I have been studying and reading hard. I have done practice and reading for AUD and BEC so far waiting for my NTS, and now I am in my 4th chapter in FAR, I think I will set for the 2 exams once I get it and will do others short after.

    Btw I always like your comments, I follow your posts …

    My Nick name is sunshine, but the fact is I have not been in touch with it since I started this CPA exam! IT HURTS

    AUD - ✔ Passed Becker self study!
    BEC - ✔ Passed Becker self study!
    FAR - ✔ Passed Becker self study!
    REG - TBD

    April 30, 2016 at 7:21 pm #764836
    Just3Letters
    Participant

    We did it guys! We made it to page 30! I wonder what's the record for a quarter? haha

    Anyways, just did another 100 MC unseen before and got 75% which is pretty much what I ALWAYS GET. Seriously, I am incredibly consistent. I just wish it would be up lol

    I had 5 (FIVE!) questions on whatever the heck “bifurification” is.. somebody want to explain? It's something about separating financial instruments from their underlying right?

    Also, my linkedin is http://www.linkedin.com/in/andreweddy1. Haven't updated it in just about forever but you can add me on fb if you want

    FAR- 81
    REG- 81
    BEC- Aug 22, 2016
    AUD- TBD

    April 30, 2016 at 7:21 pm #764837
    Claudia408
    Participant

    Spartans – well if they were easy i wouldn't be asking about them! LOL. but yea this is a hard one!

    Financing:
    C/S issue 220,000
    Dividend Payable 160,000
    Dividend declared (500,000)
    ST Debt 325,000
    Total 205,000

    BEC - 75 (3x)
    AUD - 78 (3x)
    REG - 67, 66, Aug 1
    FAR - 54, Sept 8

    April 30, 2016 at 7:25 pm #764838
    MaLoTu
    Participant

    OMG, Claudia … This is just one of those things you pray you don't get on the exam and move on! lol.

    April 30, 2016 at 7:26 pm #764839
    Spartans92
    Participant

    Y is the dividend payable of 160 an addition?
    Well, seems like I didnt pass the FAR section.. Didnt get anything to this extent but still..

    BEC- PASS

    April 30, 2016 at 7:27 pm #764840
    MaLoTu
    Participant

    Spartans maybe because it would be double counted since it is technically part of the dividend declared? My only guess.

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