Exam 16: Reporting the Statement of Cash Flows

Use the following income statement and information about selected current assets and current liabilities for Kimberline Industries to calculate the net cash provided or used by operating activities using the indirect method. Increases and decreases of current asset and current liability accounts,all of which relate to operating activities,are as follows:

The appropriate section in the statement of cash flows for reporting the purchase of land in exchange for common stock is:

Internal users of the statement of cash flows often use cash flow information to plan day-to-day operating activities and make long-term investment and financing decisions.

All of the following statements related to reporting cash flows from operating activities under U.S.GAAP and IFRS are true except:

Cash flow amounts and their timing should be considered when planning and analyzing operating activities.

A corporation reported average total assets in Year 1 of $397,350 and $440,800 in Year 2.Its net operating cash flow for Year 1 was $35,667 and $35,790 for Year 2.Calculate the cash flow on total assets ratio for both years.Comment on the results.

For each of the following separate cases,use the information provided to calculate the missing cash inflow or cash outflow using the direct method.

When using the indirect method to calculate and report the net cash provided or used by operating activities,net income is adjusted for all but which of the following?

Use the information provided below to calculate the cash paid for interest for the period.

Activities that involve the production or purchase of merchandise and the sale of goods and services to customers,including expenditures related to administering the business,are classified as:

Cash flows are essentially the same as net income because they are both measured using accrual accounting principles.

Tate Company's 2015 income statement and changes in selected balance sheet accounts are given below.Calculate the company's net cash provided or used by operating activities using the direct method. The company also experienced the following during 2015:

A company had net cash flows from operations of $341,000,net income of $286,000 and average total assets of $1,850,000.The cash flow on total assets ratio equals:

Accounting standards require companies to include a statement of cash flows in a complete set of financial statements.

The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the:

The cash flow on total assets ratio is calculated by:

The cash flow on total assets ratio is computed by dividing cash flows from operations by average total assets.

When preparing the operating section of the statement of cash flows using the indirect method,noncash expenses are _____________ net income.

Noncash investing and financing activities may be disclosed in:

In preparing a company's statement of cash flows for the year just ended,the following information is available: Net cash flows from financing activities for the year were: