Exam 15: Statement of Cash Flows

Which method of preparing the operating activities section of the statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses?

A company had net income of $230,000.Depreciation expense is $26,000.During the year accounts receivable and inventory increased $15,000 and $40,000,respectively.Prepaid expenses and accounts payable decreased $2,000 and $4,000,respectively.There was also a loss on the sale of equipment of $3,000.Using the indirect method,what is the amount of net cash flows from operating activities on the statement of cash flows?

Stillwater Inc.reported the following information for 2011 and 2012: If Stillwater Inc.uses the indirect method to prepare the operating activities section of the statement of cash flows,what amount will be reported as net cash flows from operating activities for 2012?

The following events occurred last year for the Cronin Company: Considering just the above transactions,the net cash flows from financing activities on the statement of cash flows was

The ______________ computes operating cash flow by adjusting net income for items that do not affect cash flows.

Cash flows from acquiring and retiring long-term debt are classified as

The following transactions occurred last year at Jackson Inc. Based solely on the above information,the net cash flows from financing activities for the year on the statement of cash flows would be

Activities that decrease cash are uses of cash and are referred to as ___________.

Last year Maine Company reported cost of goods sold of $110,000.Inventories increased by $30,000 during the year,and accounts payable decreased by $15,000.The company uses the direct method to determine the net cash flows from operating activities on the statement of cash flows.The cost of goods sold adjusted to a cash basis would be

The indirect and direct methods of preparing the statement of cash flows are identical except for the

Under the indirect method,the net cash flow from operating activities is computed by adjusting net income to remove the effect of all deferrals of past operating cash receipts and payments,and all accruals of future operating cash receipts or payments.

A decrease in accounts payable is added to net income in the operating activities section of the statement of cash flows prepared under the indirect method.

Last year Simpson Company reported cost of goods sold of $105,000.Inventories decreased by $10,000 during the year,and accounts payable increased by $25,000.The company uses the direct method to determine the net cash flows from operating activities on the statement of cash flows.The cost of goods sold adjusted to a cash basis would be

Last year Frye Company's cash account increased by $17,000.Net cash flows from investing activities were ($40,000).Net cash flows from financing activities were $2,000.On the statement of cash flows,the net cash flows from operating activities were

A statement of cash flows indicates the sources and uses of a firm's cash during a period.

Last year Emmons Company reported cost of goods sold of $115,000.Inventories decreased by $20,000 during the year,and accounts payable decreased by $15,000.The company uses the direct method to determine the net cash flows from operating activities on the statement of cash flows.The cost of goods sold adjusted to a cash basis would be

Harbor Company reported net income of $60,000 for the year ended December 31,2011.During the year,inventories decreased by $12,000,accounts payable decreased by $18,000,depreciation expense was $20,000 and a gain on disposal of equipment of $9,000 was recorded.Net cash provided by operating activities in 2011 using the indirect method was

Figure 15-2. Chandler Company's net income last year was $98,000 and cash dividends declared and paid to the company stockholders was $13,000.Changes in selected balance sheet accounts for the year appear below: Refer to Figure 15-2.The net cash flows from investing activities to be reported in a statement of cash flows is

________________ are the ongoing,day-to-day,revenue-generating activities of an organization.

Stacy Company's net income last year was $27,000.Changes in selected balance sheet accounts for the year appear below: Based solely on this information,the net cash flows from operating activities under the indirect method on the statement of cash flows would be