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Exam 16: Statement of Cash Flows

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Question 51

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Sales reported on the income statement were $690,000.The accounts receivable balance declined $39,000 over the year.Determine the amount of cash received from customers.

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Question 52

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Which of the following would not be classified as an operating activity?

A) interest expense
B) income taxes
C) payment of dividends
D) selling expenses

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

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Question 53

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Under the direct method of reporting cash flows from operations,the primary source of cash is cash received from customers.

The cost of merchandise sold during the year was $50,000.Merchandise inventories were $12,500 and $10,500 at the beginning and end of the year,respectively.Accounts payable were $6,000 and $5,000 at the beginning and end of the year,respectively.Using the direct method of reporting cash flows from operating activities,cash payments for merchandise total

For each of the following activities that may take place during the accounting period, indicate the effect (a-g) on the statement of cash flows prepared using the indirect method. Choices may be selected as the answer for more than one question. -Gain on sale of investments

An analysis of the general ledger accounts indicates that equipment,with an original cost of $200,000 and accumulated depreciation of $170,000 on the date of sale,was sold for $20,000 during the year.Using this information,indicate the items to be reported on the statement of cash flows using the indirect method.

The board of directors declared cash dividends totaling $168,000 during the year.The comparative balance sheet indicated dividends payable of $46,000 at the beginning of the year and $42,000 at the end of the year.What was the amount of cash payments to stockholders during the year?

Cash flows from investing activities,as part of the statement of cash flows,include payments for the acquisition of fixed assets.

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

On the statement of cash flows prepared using the indirect method,a $7,500 gain on the sale of fixed assets would be

On the statement of cash flows prepared by the indirect method,the Cash flows from operating activities section would include

Zenith Corporation sells some of its used store fixtures.The acquisition cost of the fixtures is $12,500,and the accumulated depreciation on these fixtures is $9,750 at the time of sale.The fixtures are sold for $5,300.The value of this transaction in the investing section of the statement of cash flows is

In preparing the statement of cash flows,the correct order of reporting cash activities is financing,operating,and investing.

In calculating cash flows from operating activities using the indirect method,a gain on the sale of equipment is

A building with a cost of $153,000 and accumulated depreciation of $42,000 was sold for an $11,000 gain.When using the indirect method,the cash generated from this investing activity is $121,000.

On the basis of the following data for Larson Co.for the year ending December 31 Year 2,and the preceding year ended December 31,Year 1,prepare a statement of cash flows.Use the indirect method of reporting cash flows from operating activities.In addition to the balance sheet data,assume that:Equipment costing $125,000 was purchased for cash.Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000.The stock was issued for cash.​The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.​

Net income was $51,000 for the year.The accumulated depreciation balance increased by $14,000 over the year.There were no sales of fixed assets or changes in noncash current assets or liabilities.Under the indirect method,the cash flow from operations is $37,000.

If accounts payable have increased during a period,

The net income reported on the income statement for the current year was $275,000.Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000,respectively.Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:​ What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

For each of the following activities that may take place during the accounting period, indicate the effect (a-g) on the statement of cash flows prepared using the indirect method. Choices may be selected as the answer for more than one question. -Repayment of long-term note payable