The Robinson Company reported net income of $90, 000 in 2010.Additional information follows: $\begin{array}{ll} \text { Depreciation expense } & \$ 18,000 \\ \text { Loss on sale of equipment } & 10,000 \\ \text { Gain on sale of land } & 17,000 \end{array}$ Given just this information, what was the Robinson Company's net cash provided by operating activities in 2010?

A) $ 79, 000 B) $100, 000 C) $101, 000 D) $115, 000 A) $ 79, 000 B) $100, 000 C) $101, 000 D) $115, 000

The following information relates to the Jordan, Inc: $\begin{array}{ll} \text { Depreciation expense } & \$ 500 \\ \text { Increase in salaries payable } & 50 \\ \text { Purchased operating equipment } & 700\\ \text { Net income } & 3,000 \\ \text { Paidlong term note payable } & 600 \\ \text { Paid dividends } & 900 \\ \text { Increase in accmuntereceivahle } & 400 \end{array}$ What is the net cash provided by operating activities?

A) $2, 100 B) $2, 650 C) $3, 200 D) $3, 150 A) $2, 100 B) $2, 650 C) $3, 200 D) $3, 150

A cash flow statement is one of the basic financial statements that is required under $\begin{array}{lll} & \text { IFRS} & \text { GAAP}\\ \text { I. } & \text { No } & \text { Yes } \\ \text { II. } & \text { No } & \text { No } \\ \text { III. } & \text { Yes } & \text { No } \\ \text { IV } & \text { Yes } & \text { Yes } \end{array}$

A) I B) II C) III D) IV A) I B) II C) III D) IV

Bertrand, Inc.prepares a statement of cash flows.In 2010, Bertrand had net income of $45, 000.In addition, the following information is available: $\begin{array}{ll} \text { Gain on sale of land } & \$ 16,000 \\ \text { Decrease in inventories } & 10,000 \\ \text { Amortization of patents } & 4,000 \\ \text { Increase in prepaid expenses } & 3,000 \end{array}$ What net cash provided by operating activities should Bertrand report in 2010?

A) $46, 000 B) $72, 000 C) $40, 000 D) $50, 000 A) $46, 000 B) $72, 000 C) $40, 000 D) $50, 000

Exhibit 22-2 The Rollins Corporation reported $11, 000 of net income for the current year.The following additional information relates to Rollins for the year: $\begin{array}{ll} \text {Subsidiary gain included in investment }\\\text {income under the equity method}& \$ 370\\ \text {Decrease in inventory}&80\\ \text {Lose on disunsal of eauirment}&900\\ \text { Proceeds from disposal of equipment } & 1,400 \\ \text { Depreciation expense } & 1,200 \\ \text { Acquisition of treasury stock } & 650 \\ \text { Increase in ac counts payable } & 290 \\ \text { Acquisition of new securities (accounted for using the } &\\ \text { ecquity method) } & 500 \\ \text { Decrease in deferred income taxes } & 210 \\ \text { Early retirement of bonds payable at book value } & 1,000 \\ \text { Increace in interect receivahle } & 3 n \end{array}$ -Refer to Exhibit 22-2.What is Rollins' net cash provided by investing activities?

A) $ 250 B) $ 900 C) $2, 170 D) $3, 370 A) $ 250 B) $ 900 C) $2, 170 D) $3, 370

Selected accounting information regarding the Jabbar Corporation in 2010 follows: $\begin{array}{ll} \text {Net cash provided by operating activities }&\$900,000\\ \text {Common stock issued as a result of a stock dividend.}\\ \text { (fair value) } & 100,000 \\ \text { Common stock issued for cash } & 400,000 \\ \text { Proceeds from sale of building } & 300,000 \end{array}$ In 2010, Jabbar should report a net increase in cash of

A) $1, 100, 000 B) $1, 200, 000 C) $1, 600, 000 D) $1, 700, 000 A) $1, 100, 000 B) $1, 200, 000 C) $1, 600, 000 D) $1, 700, 000

Exam 22: The Statement of Cash Flows

On its January 1, 2010, balance sheet, Dilbert Company reported equipment of $50, 000 and accumulated depreciation of $20, 000.During 2010, Dilbert sold equipment with an original cost of $5, 000.Selected information from Dilbert's 2010 statement of cash flows follows: Net income \ 20,000 Depreciation expense on equipment 2,000 Gain on sale of equipment 600 Proceeds from sale of equipment 1,500 Purchase of equipment 8,000 Required: Compute the amount of equipment and accumulated depreciation that should appear on Dilbert's December 31, 2010, balance sheet.

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Question 1

Correct Answer:

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Equipment: $53, 000 ($50, 000 + $8, 000 - $5, 000) Accumulated depreciation: $17, 900 ($20, 000 + $2, 000 - $4, 100*) *Book value of equipment sold: $\$ 900(\$ 1,500-600)$
A ccumulated depreciation on equipment sold: $\$ 4,100(\$ 5,000$ - $\$ 900 )$

Which statement is not true? Current GAAP

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Question 2

Correct Answer:

Verified

Exhibit 22-3 The balance sheet accounts and other information related to those accounts are presented below for Tony Company: $Exhibit 22-3 The balance sheet accounts and other information related to those accounts are presented below for Tony Company: Additional information related to 2011 activities: 1. Net loss for 2011 was \$ 40,000 . 2. Cash dividends of \$ 12,000 were declared and paid in 2011. 3. 4,000 shares of comunon stock were issued to bonchalders converting bonds payable into common stock. 4. A long-term investment was sold for \$ 100,000 cash 5. Equipment costing \$ 100,000 and having accumulated depreciation of \$ 30,000 was sold for \$ 50,000 cash -Refer to Exhibit 22-3.Net cash provided (used)in the financing activities section of Tony's 2011 statement of cash flows was$ Additional information related to 2011 activities: 1. Net loss for 2011 was $\$ 40,000$ . 2. Cash dividends of $\$ 12,000$ were declared and paid in 2011. 3. 4,000 shares of comunon stock were issued to bonchalders converting bonds payable into common stock. 4. A long-term investment was sold for $\$ 100,000$ cash 5. Equipment costing $\$ 100,000$ and having accumulated depreciation of $\$ 30,000$ was sold for $\$ 50,000$ cash -Refer to Exhibit 22-3.Net cash provided (used)in the financing activities section of Tony's 2011 statement of cash flows was

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Question 3

Correct Answer:

Verified

Which statement best defines a company's operating cash inflows?

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Question 4

The Robinson Company reported net income of $90, 000 in 2010.Additional information follows: Depreciation expense \ 18,000 Loss on sale of equipment 10,000 Gain on sale of land 17,000 Given just this information, what was the Robinson Company's net cash provided by operating activities in 2010?

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Question 5

A statement of cash flows contains the following sections: a. net cash flow from operating activities b. cash flows from investing activities c. cash flows from financing activities d. investing and financing activities not affecting cash A list of items that appear on the statement is provided below: Required: In the space provided, using the letters (a-d), indicate in which section(s)of the statement of cash flows (or accompanying schedule)the preceding items would most likely be classified.After each item affecting cash, indicate with a plus sign (+)or a minus sign (-)whether the item would be reported as an increase (inflow)or a decrease (outflow).

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Question 6

Because the statement of cash flows only reflects the cash flows from operating, investing, and financing activities, certain noncash transactions are omitted from the body of the statement. Required: Identify the type of activities that are not included in the body of the statement of cash flows, describe the types of transactions involved, and indicate where these items are disclosed on the statement.

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Question 7

In a statement of cash flows, which of the following events would not be classified as an operating activity?

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Question 8

The following information relates to the Jordan, Inc: Depreciation expense \ 500 Increase in salaries payable 50 Purchased operating equipment 700 Net income 3,000 Paidlong term note payable 600 Paid dividends 900 Increase in accmuntereceivahle 400 What is the net cash provided by operating activities?

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Question 9

A cash flow statement is one of the basic financial statements that is required under IFRS GAAP I. No Yes II. No No III. Yes No IV Yes Yes

(Multiple Choice)

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Question 10

Bertrand, Inc.prepares a statement of cash flows.In 2010, Bertrand had net income of $45, 000.In addition, the following information is available: Gain on sale of land \ 16,000 Decrease in inventories 10,000 Amortization of patents 4,000 Increase in prepaid expenses 3,000 What net cash provided by operating activities should Bertrand report in 2010?

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Question 11

Which of the following events would be classified as an investing activity on a statement of cash flows?

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Question 12

What is the primary purpose of a company's statement of cash flows?

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Question 13

The statement of cash flows, along with other financial and operating information, enables investors, creditors, and other users to assess a company's liquidity, financial flexibility, and operating capability.Distinguish between liquidity, financial flexibility, and operating capability.

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Question 14

Exhibit 22-2 The Rollins Corporation reported $11, 000 of net income for the current year.The following additional information relates to Rollins for the year: Subsidiary gain included in investment income under the equity method \ 370 Decrease in inventory 80 Lose on disunsal of eauirment 900 Proceeds from disposal of equipment 1,400 Depreciation expense 1,200 Acquisition of treasury stock 650 Increase in ac counts payable 290 Acquisition of new securities (accounted for using the ecquity method) 500 Decrease in deferred income taxes 210 Early retirement of bonds payable at book value 1,000 Increace in interect receivahle 3n -Refer to Exhibit 22-2.What is Rollins' net cash provided by investing activities?

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Question 15

According to current GAAP, cash flow per share statistics

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Question 16

A company sold equipment for $5, 000.The equipment originally cost $15, 000 and had accumulated depreciation of $11, 000.Which of the following statements is correct regarding the statement of cash flows prepared using the indirect method to report operating activities?

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Question 17

Selected accounting information regarding the Jabbar Corporation in 2010 follows: Net cash provided by operating activities \9 00,000 Common stock issued as a result of a stock dividend. (fair value) 100,000 Common stock issued for cash 400,000 Proceeds from sale of building 300,000 In 2010, Jabbar should report a net increase in cash of

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Question 18

Exhibit 22-3 The balance sheet accounts and other information related to those accounts are presented below for Tony Company: $Exhibit 22-3 The balance sheet accounts and other information related to those accounts are presented below for Tony Company: Additional information related to 2011 activities: 1. Net loss for 2011 was \$ 40,000 . 2. Cash dividends of \$ 12,000 were declared and paid in 2011. 3. 4,000 shares of comunon stock were issued to bonchalders converting bonds payable into common stock. 4. A long-term investment was sold for \$ 100,000 cash 5. Equipment costing \$ 100,000 and having accumulated depreciation of \$ 30,000 was sold for \$ 50,000 cash - Refer to Exhibit 22-3.Net cash provided (used)in the operating activities section of Tony's 2011 statement of cash flows was$ Additional information related to 2011 activities: 1. Net loss for 2011 was $\$ 40,000$ . 2. Cash dividends of $\$ 12,000$ were declared and paid in 2011. 3. 4,000 shares of comunon stock were issued to bonchalders converting bonds payable into common stock. 4. A long-term investment was sold for $\$ 100,000$ cash 5. Equipment costing $\$ 100,000$ and having accumulated depreciation of $\$ 30,000$ was sold for $\$ 50,000$ cash - Refer to Exhibit 22-3.Net cash provided (used)in the operating activities section of Tony's 2011 statement of cash flows was

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Question 19

Treatments of items in the cash flow statement that differ between IFRS and GAAP include all of the following except the allowed treatment of

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Question 20

Showing 1 - 20 of 62

Which statement is not true? Current GAAP

Which statement best defines a company's operating cash inflows?

The Robinson Company reported net income of $90, 000 in 2010.Additional information follows: Depreciation expense \ 18,000 Loss on sale of equipment 10,000 Gain on sale of land 17,000 Given just this information, what was the Robinson Company's net cash provided by operating activities in 2010?

In a statement of cash flows, which of the following events would not be classified as an operating activity?

A cash flow statement is one of the basic financial statements that is required under IFRS GAAP I. No Yes II. No No III. Yes No IV Yes Yes

Which of the following events would be classified as an investing activity on a statement of cash flows?

What is the primary purpose of a company's statement of cash flows?

The statement of cash flows, along with other financial and operating information, enables investors, creditors, and other users to assess a company's liquidity, financial flexibility, and operating capability.Distinguish between liquidity, financial flexibility, and operating capability.

According to current GAAP, cash flow per share statistics

A company sold equipment for $5, 000.The equipment originally cost $15, 000 and had accumulated depreciation of $11, 000.Which of the following statements is correct regarding the statement of cash flows prepared using the indirect method to report operating activities?

Treatments of items in the cash flow statement that differ between IFRS and GAAP include all of the following except the allowed treatment of

The Environment of Financial Reporting

Financial Reporting: Its Conceptual Framework

Review of a Companys Accounting System

The Balance Sheet and the Statement of Changes in Stockholders Equity

The Income Statement and the Statement of Cash Flows

Additional Aspects of Financial Reporting and Financial Analysis

Cash and Receivables

Inventories: Cost Measurement and Flow Assumptions

Inventories: Special Valuation Issues

Property, Plant, and Equipment: Acquisition and Disposal

Depreciation and Depletion

Intangibles

Current Liabilities and Contingencies

Long-Term Liabilities and Receivables

Investments

Contributed Capital

Earnings Per Share and Retained Earnings

Income Recognition and Measurement of Net Assets

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Accounting for Postemployment Benefits

Accounting for Leases

Accounting for Changes and Errors

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