Exam 15: Statement of Cash Flows

Under the indirect method of determining the net cash from operating activities on the statement of cash flows,depreciation is subtracted from the net income for the period.

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

If a gain of $25,000 is incurred in selling (for cash)office equipment having a book value of $100,000,the total amount reported in the cash flows from the investing activities section of the statement of cash flows is

The _____________________ provides information regarding the sources and uses of a firm's cash.

Which of the following would be added to net income using the indirect method?

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 operating activities to be reported in a statement of cash flows is

Which balance sheet accounts are affected by financing activities?

Nelson Company's net income last year was $18,000 and cash dividends declared and paid to the company stockholders was $12,000.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 balance sheets for Jenson Company,for the years ended December 31,2012 and 2011,are as follows: The income statement for the current year is as follows: Additional information: Required: Prepare a statement of cash flows,using the indirect method.

Smith and Company reported net income for the current year.Which of the following business transactions would cause cash from operating activities to be higher than the amount of net income?

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 financing activities last year was

Long Company's net income last year was $43,000 and cash dividends declared and paid to the company stockholders was $28,000.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

In calculating cash flows from operating activities using the indirect method,a gain on the sale of equipment is

Using the indirect method,if equipment is sold at a gain,the

Noncash investing and financing transactions,such as the exchange of common stock to purchase assets,represent significant investing and financing activities and are disclosed in a supplementary schedule that is attached to the statement of cash flows.

Cash flows from operating activities,as reported on the statement of cash flows,would include

As transactions increase in number and complexity,a ____________ becomes a useful aid in preparing the statement of cash flows.

In preparing the statement of cash flows,determining the net increase or decrease to cash requires the use of

How is it possible for a company to suffer a net loss for a given year,yet produce a positive net cash flow from operating activities?

The order of presentation of activities on the statement of cash flows is