Exam 12: Statement of Cash Flows

Augusta Company reported that its bonds with a face value of $40,000 and a carrying value of $42,400 are retired for $44,800 cash.The amount to be reported under cash flows from financing activities is:

The following additional information is available from the financial statements of Garfield Industries: What is Garfield's net cash provided by operating activities?

Which of the following would not be added to net income in calculating cash flows from operating activities on a statement of cash flows prepared using the indirect method?

In arriving at cash from operating activities,subtracting a decrease in Salaries and Wages Payable from net income includes the cash effects of transactions that:

Snowberry Corporation had a net increase in Retained Earnings of $182,000 for the year.The corporation also paid $56,000 of cash dividends that had been declared in the previous year.This year,the corporation declared $50,400 of dividends but has not paid them as of year-end.Given this information,the net income for the current year must have been:

Assume a company uses the indirect method to prepare its statement of cash flows.If Accounts Receivable decreases and Unearned Revenue increases during an accounting period,what does the company do with the changes in these accounts to calculate cash flows from operating activities?

When preparing the operating activities section of the statement of cash flows using the direct method,net income must be adjusted for gains or losses realized when property,plant,and equipment is sold.

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?

Negative operating cash flow may indicate all of the following except:

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

Alton Baker Company's balance sheet indicated that the cash account increased by $15,120 during the past year.Net cash provided by operating activities was $39,200 and net cash used in investing activities was $17,080.What was the net cash flow effect of the company's financing activities?

Oakdale Co.borrowed $1,960,000 cash from Eugene National Bank last year.In addition,the company repaid a $1,260,000 note payable to Michigan State Bank.How should these transactions be listed in the Statement of Cash Flows?

Strawbale,Inc.purchases a $600,000 building,paying $400,000 in cash and signing a $200,000 promissory note.What will be reported on the statement of cash flows as a result of this transaction?

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.

St.Pierre Enterprises reported the following information in its financial statements: What is the amount of cash collected from customers during the current year?

Emerald Co.owned equipment with a book value of $72,000 that was sold during this accounting period for $18,300 in cash,and purchased new equipment for cash of $88,800.Emerald Co.would record a debit of:

Indicate whether each of the following would be added to or subtracted from net income when using the indirect method to reconcile net income to cash flows from operating activities.

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

How is the change in cash classified on the statement of cash flows?

Which of the following items would not be classified as a cash flow from financing activities?