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Exam 12: Statement of Cash Flows

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Question 51

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Using the indirect method,which of the following would not be added to net income?

A) An increase in Equipment.
B) A decrease in Prepaid Insurance.
C) An increase in Salaries and Wages Payable.
D) A decrease in Supplies.

E) A) and C)
F) B) and D)

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Question 52

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The repayment of the principal of a loan which had been used to finance the purchase of equipment should be reported on the statement of cash flows as a:

A) cash outflow from investing activities.
B) cash outflow from operating activities.
C) cash outflow from financing activities.
D) noncash investing and financing activities in a supplemental disclosure.

E) C) and D)
F) A) and B)

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Question 53

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Alton Baker Company's balance sheet indicated that the cash account increased by $15,120 during the past year.Net cash provided by operating activities was $39,200 and net cash used in investing activities was $17,080.What was the net cash flow effect of the company's financing activities?

A company purchased money market funds with cash during the current year.Which of the following statements is correct?

A machine with a cost of $234,000 and accumulated depreciation of $153,000 is sold for $63,000 cash. Required: Part a.Prepare the journal entry to record this transaction. Part b.Explain how this transaction would be reported on the statement of cash flows prepared using the indirect method.

St.Pierre Enterprises reported the following information in its financial statements: $\begin{array}{lrr}\text { Amounts are as of or for the year ended } & \text { Prior Year } & \text { Current Year } \\\text { Inventory } & \$ 55,000 & \$ 80,000\\\text { Accounts Receivable } & 68,000 & 103,000 \\\text { Accounts Payable } & 34,500 & 40,000 \\\text { Sales Revenue } & 305,000 & 375,000 \\\text { Cost of Goods Sold } & 203,000 & 250,000\end{array}$ What is the amount of cash collected from customers during the current year?

Southview Company's interest revenue for the period is $28,000 and the beginning and ending interest receivable balances are $2,640 and $11,800,respectively,cash received for interest is:

Which of the following variations of the accounting equation describes the preparation of the statement of cash flows?

Scots Glenn Manufacturing took out $532,000 of new debt this year and repaid $800,000 of older debt in the same year.The company also issued stock for $353,600 cash and paid dividends of $79,200 for the year.The company's financing cash flows appearing the statement of cash flows will show:

Marion Manufacturing had the following cash flows for the current year.The company uses the direct method in preparing the statement of cash flows. $\begin{array}{lr}\text { Cash receipts from issuance of stock } & 60,000 \\\text { Bonds payable issued at face value } & 250,000 \\\text { Cash dividends received from long-term investments } & 4,500 \\\text { Cash paid for wages } & 20,000 \\\text { Cash paid for dividends } & 5,000 \\\text { Cash received from customers } & 42,500 \\\text { Cash paid for other operating expenses } & 19,500\\\text { Cash paid to purchase equipment }&100,000\end{array}$ What is the net cash provided by (used in) operating activities?

If operating cash flows are calculated using the indirect method,which of the choices below correctly states the direction of adjustments to convert net income into net cash provided by or used in operations?

When preparing the statement of cash flow using the indirect method,Depreciation Expense is:

A healthy company typically shows positive cash flows in the financing activities section of the statement of cash flows.

If sales are $680,000 and the beginning and ending balances of Accounts Receivable are $34,400 and $38,400,respectively,the cash collected from customers is:

Which of the following would be included in cash flows from financing activities?

Westmoreland Corporation prepared its statement of cash flows for the year.The following information is taken from that statement: What is the cash balance at the beginning of the year?

Cash and cash equivalents include assets that:

Consider the following information: Required: Use the direct method to compute the amount of net cash flows provided by (used in)operating activities.

St.Pierre Enterprises reported the following information in its financial statements: $\begin{array}{lrr}\text { Amounts are as of or for the year ended } & \text { Prior Year } & \text { Current Year } \\\text { Inventory } & \$ 55,000 & \$ 80,000\\\text { Accounts Receivable } & 68,000 & 103,000 \\\text { Accounts Payable } & 34,500 & 40,000 \\\text { Sales Revenue } & 305,000 & 375,000 \\\text { Cost of Goods Sold } & 203,000 & 250,000\end{array}$ What is the amount of cash payments made to suppliers during the current year?

In calculating the net cash provided by or used in operations using the indirect method,which of the following items would be added to net income?