FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 16: The Statement of Cash Flows

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Essay

Review LaterAdd Note

Review Later

Genius Inc. uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record Net Income for the year ended December 31, 2014 of $49,000. Panel B-Statement of Cash Flows: Cash Flows From Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation Expense-Plant Assets Gain on Disposal of Plant Assets Increase/Decrease in Accounts Receivable Increase/Decrease in Inventory Increase/Decrease in Accounts Payable Increase/Decrease in Accrued Liabilities Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Cash Payment for Acquisition of Plant Assets Cash Receipt From Disposal of Plant Assets Net Cash Used for Investing Activities Cash Flows from Financing Activities: Cash Receipt From Issuance of Notes Payable Cash Payment of Notes Payable Cash Receipt from Issuance of Common Stock Cash Payment for Purchase of Treasury Stock Cash Payment of Dividends Net Cash Provided by Financing Activities Net Increase (Decrease)in Cash Total

Correct Answer

verified

Panel B-Statement of Cash Flows:
Cash F...

View Answer

Show Answer

Question 42

True/False

Review LaterAdd Note

Review Later

The amount of net cash flow from operating activities will be different in the direct and indirect methods when preparing the statement of cash flows.

Correct Answer

verified

Show Answer

Question 43

True/False

Review LaterAdd Note

The direct method of preparing the statement of cash flows provides a clearer way of analyzing cash flow information than the indirect method.

Starfire Company uses the indirect method to prepare the statement of cash flows. Refer to the following income statement: Additional information provided by the company includes the following: Current assets other than cash decreased by $25,000 Current liabilities increased by $3,000 Prepare the operating activities section of the statement of cash flows.

A company purchased machinery by issuing a long-term note payable. This is an example of a non-cash investing and financing activity for the statement of cash flows.

Which of the following describes the operating activities section of the statement of cash flows?

Which of the following transactions would be shown in the non-cash investing and financing activities section of the statement of cash flows?

Which of the following sections of the statement of cash flows include the issuance of stock and the payment of cash dividends?

Financing activities on the statement of cash flows affect the long-term liability and equity accounts, such as Long-Term Notes Payable, Bonds Payable, Common Stock, and Retained Earnings.

Avatar Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: Additional information provided by the company includes the following: Equipment costing $104,000 was purchased for cash. Equipment with a net asset value of $20,000 was sold for $28,000. Depreciation Expense of $24,000 was recorded during the year. Prepare the investing activities section of the statement of cash flows.

Planned investments and cash dividends are deducted from ________ to arrive at free cash flow.

Buying property, plant and equipment for cash would be considered a cash outflow for the financing activities section of the statement of cash flows.

Which of the following sections from the statement of cash flows include borrowing money and paying off loans?

Wellington Inc. uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ended December 31, 2015: On Wellington's statement of cash flows, using the direct method, what amount will be shown for total cash receipts from operating activities?

Sonesta Company sold equipment for cash. The income statement shows a loss on sale of $7,000. The net book value of the asset prior to the sale was $26,900. Which of the following statements describes the cash effect of the transaction?

Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2014: From the income statement: Sales Revenues, $265,000 Cost of Goods Sold, $210,000 Operating expenses, $31,000 From the balance sheet: On the statement of cash flows, what amount will be shown for payments to suppliers for inventory purchases? (Assume that Accounts Payable are for purchases of inventory only.)

Mei Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for the year 2014: Cost of Goods Sold, $155,000 Inventory, beginning balance, $26,000 Inventory, ending balance, $63,000 Accounts Payable, beginning balance, $8,100 Accounts Payable, ending balance, $5,100 Operating expenses, $27,000 Accrued Liabilities, beginning balance, $2,500 Accrued Liabilities, ending balance, $6,000 In the operating activities section of the statement of cash flows, what amount will be shown for payments to suppliers? Assume Accrued Liabilities relate to Operating Expenses.

The financing section of the statement of cash flows involves transactions relating to the Equity accounts and the Long-Term Liability accounts.

On the statement of cash flows (direct method) , cash received from selling merchandise would be considered a:

Which of the following sections of the statement of cash flows include activities that increase and decrease long-term assets?