Exam 12: Statement of Cash Flows

A piece of equipment with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a cash inflow from investing activities is:

A corporation had a net increase in Retained Earnings of $65,000 for the year. The corporation also paid $20,000 of cash dividends that had been declared in the previous year. This year, the corporation declared $18,000 of dividends but has not paid them as of year-end. Given this information, the net income for the current year must have been:

Chino Company reported net income of $20,000 for the current year. During the year, Inventory decreased by $7,000, Accounts Payable decreased by $8,000, Depreciation Expense was $10,000, and Accounts Receivable increased by $6,500. If the indirect method is used, what is the net cash provided by operating activities?

Assume that the indirect method is used to determine net cash provided by (used in) operating activities and that Accounts Receivable balance decreased by $10 million during the year. That $10 million should be:

If Insurance Expense is $7,000 and the beginning and ending balances of Prepaid Insurance are $1,500 and $2,000, respectively, the cash paid for insurance is:

Using the indirect method, which of the following would be added to net income?

Material noncash investing and financing transactions are:

Major investing and financing activities that do not involve cash do not have to be reported as part of the statement of cash flows

Which of the following equations is correct?

Using the T-account approach to preparing the statement of cash flows, an increase in Accounts Payable would appear on the debit side of the Cash account

Cash and cash equivalents include assets that:

Repayments of loans will be reported as a:

Consider the following information: What is the net cash provided by operating activities?

A company bought $250,000 of equipment with an expected life of ten years and no residual value. After six years the company sold the equipment for $94,000. If the company uses straight-line depreciation and the indirect method is used to determine cash flows from operating activities, which of the following reflects how the sale of the equipment would be reported in the statement of cash flows?

What is the starting point for calculating cash flows from operations when the indirect method is used?

The following information is taken from the income statement of Muir Company: Based on this information, what is the amount of net cash flow provided by operating activities?

The direct exchange of debt for equipment would be shown:

Which of the following is not needed to prepare a statement of cash flows?

Which of the following represents a cash inflow from financing activities?

Which of the following is the best measure of a company's profitability?