Exam 15: Statement of Cash Flows

Determining the cash flows from operating activities generally requires analyzing each item on the income statement as well as the current asset and current liability accounts.

Cash flows from acquiring and selling equipment are classified as

Clover Company had the following information for the years 2012 and 2011:

Which of the following would be subtracted from net income using the indirect method?

Advance Systems Inc.reported the following information for 2011 and 2012: If Advance Systems 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 indirect method of reporting the cash flows from operating activities on the statement of cash flows is the method most widely used in practice.

Total operating expenses on Tucker Company's income statement for last year totaled $215,000.During the year the accounts payable stayed the same,the accrued liabilities stayed the same,and prepaid expenses stayed the same.Depreciation expense for the year was $11,000.Based on this information,operating expenses adjusted to cash basis under the direct method on the statement of cash flows would be

The net income reported on the income statement for the current year was $200,000.Depreciation recorded on plant assets was $38,000.Accounts receivable and inventories increased by $2,000 and $8,000,respectively.Prepaid expenses and accounts payable decreased by $1,000 and $11,000,respectively.Using the indirect method,how much would be reported for net cash flows from operating activities in the statement of cash flows?

Acquiring new equipment,selling long-term investments,and purchasing land are all examples of _______________.

Which of the following investing activities results in a cash inflow?

The following transactions occurred last year at Dempsey 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

If a loss of $12,500 is incurred in selling (for cash)office equipment having a book value of $50,000,the total amount reported in the cash flows from investing activities section of the statement of cash flows is

Activities that increase cash are sources of cash and are referred to as ___________.

Transactions that involve the acquisition or sale of long-term assets are generally classified as investing activities on the statement of cash flows.

Jamestown Inc.reported the following information for 2011 and 2012: What was the amount of net cash flows from investing activities for 2012?

In the ________________,each line on the income statement is adjusted to produce a cash flow income statement.

A loss on the sale of equipment is subtracted from net income in determining net cash from operating activities under the indirect method.

All firms that are registered with the ______________________ must issue a statement of cash flows. or or

On the statement of cash flows,the indirect method adjusts net income to determine the net cash flows from operating activities.

If a firm uses the direct method for reporting operating activities on the statement of cash flows,it must present a separate schedule which reconciles net income to net cash from operating activities.