Exam 22: The Statement of Cash Flows

The IFRS categories of cash flows are

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 used ( )by financing activities?

Angelina Heating Co.reported $72, 000 of net income.Additional information is listed below: Account Change Prepaid assets \ 400 increase Inventory 700 decrease Accounts payable 250 decrease Dividends payable 50 increase The net cash provided by operating activities was

The following information relates to the Red Rocket Company: Increase in accounts receivable \ 80 Increase in bonds payable 1,000 Decrease in inventory 75 Net income 10.000 Amortization of premium on bonds payable 260 Increase in income taxes payable 60 Depreciation expense 2,000 Decrease in accounts payable 380 What is the net cash provided by operating activities?

Unlike GAAP, IFRS encourage the disclosure of all of the following except

Several items to be considered in converting net income to the net cash flow from operating activities under the indirect method are listed below: Required: Fill in the blanks by using a plus sign (+)or a minus sign (-)to indicate whether each item should be added to or subtracted from net income to arrive at the net cash flow from operating activities.

Which of the following statements is true regarding the Financial Accounting Standards Board (FASB)and reporting operating activities on the statement of cash flows?

Exhibit 22-1 Walters Company provided the following information relating to patents for 2010: Balance, 1/1/2010 \ 4,800 Purchase of 10 -year life patent for cash 2,000 Sale of patent at book value (1,400) Amortization of patents (290) Balance, 12/31/2010 \5 ,110 -Refer to Exhibit 22-1.The Cash Flows from Investing Activities section would include a net change related to patents of

Current GAAP permits two methods of calculating and reporting a company's net cash flow from operating activities on its statement of cash flows. Required: Identify the two methods.Which method does the FASB prefer? Which method do most companies use and why?

Which of the following items would be deducted from net income to determine the net cash provided by operating activities using the indirect method?

In a statement of cash flows, increases or decreases in noncurrent assets are most closely associated with

In a statement of cash flows prepared by the indirect method, which of the following events would be deducted from net income?

When reading the Cash Outflows from Operating Activities portion of the statement of cash flows, you would expect to find which of the following? I. Payments to suppliers II. Payments to customer: III. Payments to employees IV. Payments of interest V. Payments for income tax VI. Other operating payments

Which of the following would be added to net income in computing cash flows from operating activities?

The content of the statement of cash flows would not include which one of the following items?

When reading the Cash Inflows from Operating Activities portion of the statement of cash flows using the direct method, you would expect to find which of the following? I. Collections from customers II. Interest and dividends collected III. Other operating receipts IV. Receipts from stockholders

In a statement of cash flows prepared by the indirect method, an increase in accounts receivable should be

Companies are allowed to report cash flow per share under IFRS GAAP I. Yes No II. Yes Yes III. No No IVI No Yee

The following information relates to the Davenport Company: Accrued interest payable, begining of period \6 0 Prevaidinterest end of period. 40 Accrued interest payable, end of period 10 Total interest expense reported on the income statement 750 Prepaid interest, beginning of period 70 What was the amount of cash payments for interest?

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 investing activities section of Tony's 2011 statement of cash flows was