Exam 12: Statement of Cash Flows

Which of the following would not be included in the cash and cash equivalents amount reported on the balance sheet?

What is the purpose of the statement of cash flows?

The following additional information is available from the financial statements of Hitchens Company: What is the net cash provided by operating activities?

Ashley Co. uses the direct method in calculating its cash flow from operations. Which of the following items will not have an effect on cash flow from operating activities?

Which of the following statements about the statement of cash flows is not correct?

The statement of cash flows cannot be used to determine:

Which of the following items below will be subtracted in the financing cash flow portion of the statement of cash flows?

The Retained Earnings account has a beginning balance of $321,975 and an ending balance of $356,413. Net income is $40,251. Which of the following statements is correct?

Cash flows from financing activities include all of the following except:

When preparing the statement of cash flow using the indirect method, Depreciation Expense is:

Which of the following statements about the calculation of cash flows from operating activities under the direct method is correct?

The approach to preparing the cash flow statement relies on the following rearrangement of the balance sheet equation: Change in cash = Change in (Liabilities + Stockholders' Equity + Noncash Assets)

Consider the following information: Required: Part a. Compute the cash provided by (used in) investing activities. Part b. Compute the cash provided by (used in) financing activities. Part c. If you did not use any of the items listed in parts a or b, explain why, and indicate, if appropriate, how each item would be reported on the statement of cash flows.

Choose the appropriate letter to match the term and the definition. Not all definitions will be used. Term _____ Cash Inflow _____ Property, Plant, and Equipment _____ Comparative Balance Sheet _____ Free Cash Flow _____ Noncash Investing and Financing Activities _____ Net Income _____ Statement of Cash Flows _____ Cash Outflow Definition A financial statement that tracks the flow of cash into and out of a company according to the three types of activities that generate the flows. Cash flows in excess of net income. Reported as supplement disclosures or in the notes section to the financial statements rather than within the body of the statement of cash flows. Results from activities such as sales of goods and assets, receipt of cash dividends, and receipts of interest. Cash a company receives that is not subject to income tax. Purchases and sales of this are classified as investing activities. The starting point for calculating operating cash flows with the direct method. Cash flows from operations in excess of amount paid to replace property, plant and equipment and to pay cash dividends to stockholders. The percent of a company's net cash flow that comes from investing and financing activities. An adjustment made when using the indirect method of calculating cash flows from operating activities. The starting point for calculating operating cash flows with the indirect method. Purchases and sales of this are classified as operating activities. A balance sheet that shows the starting and ending balance of the different accounts; it is used to calculate the net cash flow provided by operating activities. Results from activities such as purchases of goods and assets, payment of debt, payment of cash dividends, and payment of taxes.

The management team of Wickersham Brothers Inc. is preparing its annual financial statements. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statements are summarized. • Other information from the company's records includes the following: • Bought equipment for cash, $50,000. • Paid $10,000 on long-term note payable. • Issued new shares of common stock for $20,000 cash. • Cash dividends of $16,000 were declared and paid to stockholders. • Accounts Payable arose from inventory purchases on credit. • Income Tax Expense ($4,000) and Interest Expense ($3,000) were paid in full at the end of both years and are included in Other Expenses. Required: Prepare a schedule summarizing operating, investing, and financing cash flows using the T-account approach

A company loaned $1,000,000 with interest at 7% to another company. The interest revenue from this loan would be reported on the statement of cash flows as a:

Which of the following would be included in cash flows from investing activities?

A company's cash flows from investing activities include cash transactions relating to the purchase and disposal of which types of assets?

Your company owned equipment with a book value of $120,000 that was sold during this accounting period for $30,500 in cash, and purchased new equipment for cash of $148,000. Your company would record a debit of:

Assume a company uses the direct method to prepare its statement of cash flows. If the company's inventory and accounts payable both increase during the accounting period, how would these changes affect cash flow calculations?