Exam 15: Statement of Cash Flows

If a gain of $30,000 is incurred in selling (for cash)long-term investments having a book value of $180,000,the total amount reported in the cash flows from investing activities section of the statement of cash flows is

Investments in stock are reported as an investing activity on the statement of cash flows.

Figure 15-1. Master Company's net income last year was $88,000 and cash dividends declared and paid to the company stockholders was $60,000.Changes in selected balance sheet accounts for the year appear below: Refer to Figure 15-1.The net cash flows from operating activities last year was

Which one of the following affects cash during a period?

Financing activities involve

If a company has both an inflow and an outflow of cash related to property,plant,and equipment,

For a statement of cash flows,firms are required to classify their cash activities into three categories: operating,investing,and borrowing.

Using the indirect method,calculate the amount of net cash flows from operating activities from the following data:

Upon review of Johnson's Statement of Cash Flows,the following was noted: From this information,the most likely explanation is that Johnson is

All SEC-registered firms must issue a statement of cash flows,in addition to the income statement and balance sheet.

The balance sheets of Dolan Company,for December 31,2012 and 2011,are as follows: Additional information: Required: Prepare a statement of cash flows using the indirect method.

The activity from the balance sheet to be presented in the financing activities section of the statement of cash flows is based on an analysis of stockholders' equity only.

Which of the following statement concerning the statement of cash flows is true?

Best Wishes Company had the following information for the year ended December 31,2011:

Tracy Company reported the following information at the end of 2011 and 2012: An analysis of the company's records indicated that there were no cash flow effects resulting from the changes in the two accounts presented above.How should Tracy report the changes in these accounts on a statement of cash flows?

Companies can use two different methods to report the amount of cash flow from their operating activities on the statement of cash flows.

Which of the following would not be needed to determine net cash provided by operating activities?

Last year Kinslow Company's cash account increased by $16,000.Net cash flows from investing activities were ($39,000).Net cash flows from financing activities were $17,000.On the statement of cash flows,the net cash flows from operating activities were

Cash inflows that enter into the determination of net income are classified as financing activities on a statement of cash flows.

Some individuals prefer to show operating cash flows as the difference between ___________ and ____________.