Selected information for Mercer Company during 2010 follows: $\begin{array}{lll} &\text { Jan } 1 & \text { Dec. } 31\\ \text { Accounts payable } & \$ 45 & \$ 52 \\ \text { Accounts receivable } & 60 & 68 \\ \text { Common stock } & 400 & 412 \\ \text { Patent amortization } & 30 & 27 \\ \text { Inventory } & 70 & 60 \end{array}$ If Mercer reported net income of $320, what was the net cash provided by operating activities for 2010?

A) $329 B) $330 C) $332 D) $342 A) $329 B) $330 C) $332 D) $342

The following information relates to the Stockton Company: $\begin{array}{lc} \text { Paid note payable } & \$ 150 \\ \text { Bought equipment } & 260 \\ \text { Depreciation expense } & 500\\ \text { Net income } & 6,000 \\ \text { Paid dividends } & 500 \\ \text { Issued bonds payable } & 1,100 \\ \text { Issued common stock } & 900 \\ \text { Sold.1and } & 2,400 \end{array}$ What is the net cash provided by financing activities?

A) $1, 350 B) $1, 850 C) $2, 350 D) $5, 850 A) $1, 350 B) $1, 850 C) $2, 350 D) $5, 850

Exhibit 22-1 Walters Company provided the following information relating to patents for 2010: $\begin{array}{ll} \text { Balance, } 1 / 1 / 2010 & \$ 4,800 \\ \text { Purchase of } 10 \text {-year life patent for cash } & 2,000 \\ \text { Sale of patent at book value } & (1,400)\\ \text {Amortization of patents}&(290)\\ \text {Balance, 12/31/2010}&\$5,110 \end{array}$ - Refer to Exhibit 22-1.The Cash Flows from Operating Activities section prepared using the indirect method would include which of the following deductions or add-back amounts related to patents?

A) $(310) B) $(290) C) $ 290 D) $ 600 A) $(310) B) $(290) C) $ 290 D) $ 600

Information regarding the Martin Company in 2010 appears below: $\begin{array}{ll} \text { Net income } & \$ 140,000 \\ \text { Dividends paid } & 20,000 \\ \text { Decrease in inventory } & 15,000\\ \text { Increase in accounts payable } & 30,000 \\ \text { Proceeds from issue of common stock } & 70,000 \\ \text { Depreciation expense } & 10,000 \end{array}$ What was Martin's net increase in cash?

A) $190, 000 B) $225, 000 C) $245, 000 D) $255, 000 A) $190, 000 B) $225, 000 C) $245, 000 D) $255, 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 operating activities?

A) $11, 540 B) $12, 210 C) $12, 860 D) $14, 800 A) $11, 540 B) $12, 210 C) $12, 860 D) $14, 800

The following information relates to the Fowler Company for 2010: $\begin{array}{ll} \text { Sales discounts } & \$ 700 \\ \text { Beginning accounts receivable } & 5,000 \\ \text { Collections on accounts receivable } & 20,000 \\ \text { Total sales seported on income statement } & 82,500 \\ \text { Ending accountsreceivable } & 7,000 \end{array}$ What was the amount of cash sales?

A) $61, 200 B) $59, 800 C) $63, 800 D) $65, 200 A) $61, 200 B) $59, 800 C) $63, 800 D) $65, 200

Which of the following should be presented in a statement of cash flows? $\begin{array}{lll} & \text { Stock Dividends}& \text { Stock Splits}\\ \text { I. } & \text { Yes } & \text { Yes } \\ \text { II. } & \text { Yes } & \text { No } \\ \text { III. } & \text { No } & \text { Yes } \\ \text { IVI } & \text { No } & \text { No } \end{array}$

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

Exam 22: The Statement of Cash Flows

Selected information for Mercer Company during 2010 follows: Jan 1 Dec. 31 Accounts payable \ 45 \ 52 Accounts receivable 60 68 Common stock 400 412 Patent amortization 30 27 Inventory 70 60 If Mercer reported net income of $320, what was the net cash provided by operating activities for 2010?

(Multiple Choice)

4.9/5

(89)

Question 41

The following information relates to the Stockton Company: Paid note payable \ 150 Bought equipment 260 Depreciation expense 500 Net income 6,000 Paid dividends 500 Issued bonds payable 1,100 Issued common stock 900 Sold.1and 2,400 What is the net cash provided by financing activities?

(Multiple Choice)

4.9/5

(81)

Question 42

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

(Multiple Choice)

4.8/5

(70)

Question 43

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 Operating Activities section prepared using the indirect method would include which of the following deductions or add-back amounts related to patents?

(Multiple Choice)

4.8/5

(76)

Question 44

Which of the following events would not result in a cash inflow?

(Multiple Choice)

4.9/5

(81)

Question 45

Magnolia Company's statement of cash flows showed net cash provided by operating activities of $47, 000 in 2010.Magnolia reported an increase in accounts payable of $6, 000, an increase in inventory of $2, 000, depreciation expense of $3, 000, and dividends paid of $8, 000.Magnolia's net income for 2010 was

(Multiple Choice)

4.9/5

(79)

Question 46

Information regarding the Martin Company in 2010 appears below: Net income \ 140,000 Dividends paid 20,000 Decrease in inventory 15,000 Increase in accounts payable 30,000 Proceeds from issue of common stock 70,000 Depreciation expense 10,000 What was Martin's net increase in cash?

(Multiple Choice)

4.9/5

(81)

Question 47

In a statement of cash flows, the payment of a cash dividend on common stock outstanding should be classified as cash outflows for

(Multiple Choice)

5.0/5

(65)

Question 48

The statement of cash flows classifies cash inflows and outflows into three different activities: operating, investing, and financing. Required: Describe the types of transactions that would be included under each of the statement of cash flow activities.

(Essay)

4.8/5

(86)

Question 49

In a statement of cash flows, which of the following events would be classified as a financing activity?

(Multiple Choice)

4.9/5

(91)

Question 50

Which statement is not true?

(Multiple Choice)

4.8/5

(75)

Question 51

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 operating activities?

(Multiple Choice)

4.8/5

(94)

Question 52

When preparing a statement of cash flows under the indirect method, an increase in ending accounts receivable over beginning accounts receivable will result in an adjustment to net income in the operating activities section because

(Multiple Choice)

4.8/5

(82)

Question 53

The following information relates to the Fowler Company for 2010: Sales discounts \ 700 Beginning accounts receivable 5,000 Collections on accounts receivable 20,000 Total sales seported on income statement 82,500 Ending accountsreceivable 7,000 What was the amount of cash sales?

(Multiple Choice)

4.8/5

(94)

Question 54

Which of the following should be presented in a statement of cash flows? Stock Dividends Stock Splits I. Yes Yes II. Yes No III. No Yes IVI No No

(Multiple Choice)

4.9/5

(74)

Question 55

A company had an increase in interest payable during the year and also amortized discount on bonds payable.Under the direct method, the amount of interest paid during the year to be reflected in the statement of cash flows is

(Multiple Choice)

4.8/5

(81)

Question 56

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

(Multiple Choice)

4.8/5

(76)

Question 57

indicate whether each item should be added to or subtracted from net income to arrive at the net cash flow from operating activities.

Increase in inventory

+

Amortization of discount on investment in bonds

-

Decrease in accounts payable

Correct Answer:

Verified

Increase in inventory

Amortization of discount on investment in bonds

(Matching)

5.0/5

(86)

Question 58

A company's unearned rental revenue account increased from the beginning to the end of the year.In the statement of cash flows using the direct method, the cash collected from tenants would be

(Multiple Choice)

4.9/5

(79)

Question 59

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

(Multiple Choice)

4.8/5

(75)

Question 60

Selected information for Mercer Company during 2010 follows: Jan 1 Dec. 31 Accounts payable \ 45 \ 52 Accounts receivable 60 68 Common stock 400 412 Patent amortization 30 27 Inventory 70 60 If Mercer reported net income of $320, what was the net cash provided by operating activities for 2010?

The following information relates to the Stockton Company: Paid note payable \ 150 Bought equipment 260 Depreciation expense 500 Net income 6,000 Paid dividends 500 Issued bonds payable 1,100 Issued common stock 900 Sold.1and 2,400 What is the net cash provided by financing activities?

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

Which of the following events would not result in a cash inflow?

Information regarding the Martin Company in 2010 appears below: Net income \ 140,000 Dividends paid 20,000 Decrease in inventory 15,000 Increase in accounts payable 30,000 Proceeds from issue of common stock 70,000 Depreciation expense 10,000 What was Martin's net increase in cash?

In a statement of cash flows, the payment of a cash dividend on common stock outstanding should be classified as cash outflows for

The statement of cash flows classifies cash inflows and outflows into three different activities: operating, investing, and financing. Required: Describe the types of transactions that would be included under each of the statement of cash flow activities.

In a statement of cash flows, which of the following events would be classified as a financing activity?

Which statement is not true?

When preparing a statement of cash flows under the indirect method, an increase in ending accounts receivable over beginning accounts receivable will result in an adjustment to net income in the operating activities section because

The following information relates to the Fowler Company for 2010: Sales discounts \ 700 Beginning accounts receivable 5,000 Collections on accounts receivable 20,000 Total sales seported on income statement 82,500 Ending accountsreceivable 7,000 What was the amount of cash sales?

Which of the following should be presented in a statement of cash flows? Stock Dividends Stock Splits I. Yes Yes II. Yes No III. No Yes IVI No No

A company had an increase in interest payable during the year and also amortized discount on bonds payable.Under the direct method, the amount of interest paid during the year to be reflected in the statement of cash flows is

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

A company's unearned rental revenue account increased from the beginning to the end of the year.In the statement of cash flows using the direct method, the cash collected from tenants would be

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

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

Accounting for Income Taxes

Accounting for Postemployment Benefits

Accounting for Leases

Accounting for Changes and Errors

Time Value of Money Module

Filters