Exam 15: Statement of Cash Flows

Last year Snyder Company reported sales of $125,000 on its income statement.During the year,accounts receivable increased by $30,000 and accounts payable increased by $10,000.The company uses the direct method to determine the net cash flows from operating activities on the statement of cash flows.The sales revenue adjusted to a cash basis would be

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

Moore Company's net income last year was $56,000 and cash dividends declared and paid to the company stockholders was $31,000.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

The data given below are from the accounting records of Kain Company: Based on this information,the net cash flows from operating activities on the statement of cash flows using the indirect method would be

In calculating cash flows from operating activities using the indirect method,an increase in accounts payable is

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 investing activities last year was

The primary purpose of the statement of cash flows is to

The statement of cash flow classifies the cash flows into three categories.Describe each of these categories.

The Star City reported net loss of $50,000.Cash from operating activities

The two approaches to calculating operating cash flows are the _______________ and the _____________.

Which of the following would not be an adjustment to net income using the indirect method?

Worksheets offer increased ____________ in form and the added convenience of spreadsheet software packages.

Under the indirect method of determining the net cash from operating activities on the statement of cash flows,increases in current assets such as accounts receivable are added to net income.

Dolan Company's income statement showed revenues of $250,000 and operating expenses of $160,000.Accounts receivable decreased by $60,000 and accounts payable increased by $40,000 during the year. Required: Compute (A)cash receipts from customers and (B)cash payments for operating expenses using the direct method.

Issuing shares of common stock,paying dividends and paying off debt are all examples of _______________.

Preparation of the statement of cash flows relies on the beginning and ending ____________.

Cash received on the sale of equipment would be considered a financing activity on a statement of cash flows.

Last year Sheeder Company's cash account decreased by $10,000.Net cash flows from investing activities were $19,000.Net cash flows from financing activities were $(17,000).On the statement of cash flows,the net cash flows from operating activities were

The direct method of reporting cash flows from operating activities involves reporting major classes of cash receipts and cash payments.

The net income reported on the income statement for the current year was $100,000.Depreciation recorded on plant assets was $25,000.Accounts receivable and inventories decreased by $5,000 and $15,000,respectively.Prepaid expenses and accounts payable increased by $500 and $4,000,respectively.Using the indirect method,how much would be reported for net cash flows from operating activities in the statement of cash flows?