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Exam 13: Statement of Cash Flows

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Question 101

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Cash inflows and outflows are not netted in the investing or financing sections of the statement of cash flows but are separately disclosed to give the reader full information.

A) True
B) False

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Question 102

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The cash flows from operating activities are reported by the direct method on the statement of cash flows.Determine the following: a If sales for the current year were $375,000 and accounts receivable increased by $29,000 during the year, what was the amount of cash received from customers? b If income tax for the current year was $39,000 and income tax payable decreased by $21,000 during the year, what was the amount of cash payments for income tax?

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Question 103

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On the statement of cash flows, the cash flows from financing activities section would include

Accounts receivable from sales to customers amounted to $40,000 and $32,000 at the beginning and end of the year, respectively.Income reported on the income statement for the year was $110,000.Exclusive of the effect of other adjustments, the net cash flows from operating activities to be reported on the statement of cash flows using the indirect method is

A business issues 20-year bonds payable in exchange for preferred stock.This transaction would be reported on the statement of cash flows in

Which of the following types of transactions would be reported as a cash flow from investing activity on the statement of cash flows?

Identify the section of the statement of cash flows a-d where each of the following items would be reported. -Decrease in inventory

The comparative balance sheet of Barry Company for Years 1 and 2 ended December 31 appears below in condensed form: a Net income, $75,800. b Depreciation reported on income statement, $38,000. c Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $150,000. d Bonds payable for $75,000 were retired by payment at their face amount. e 2,500 shares of common stock were issued at $30 for cash. f Cash dividends declared and paid, $40,000. g Investments of $100,000 were sold for $125,000. Prepare a statement of cash flows using the indirect method.

Cash flows from investing activities, as part of the statement of cash flows, would include any receipts from the issuance of bonds payable.