Exam 12: Statement of Cash Flows

Depreciation Expense is not reported on the statement of cash flows when prepared using the direct method.

Cash flows from investing activities include:

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

Which of the following are used to determine cash flows from financing activities?

Which of the statements below is correct when comparing the direct and indirect methods of reporting operating cash flows?

Which of the following statements is correct?

An outdoor water park that has a calendar year-end and is located in an area of the country that has warmer weather during April through September and colder weather during the rest of the year is likely to have:

The Viviana Co.uses the indirect method to determine its cash flow from operations.Which of the following items will be subtracted from net income to find its cash flow from operations?

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

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:

Marion Manufacturing had the following cash flows for the current year.The company uses the direct method in preparing the statement of cash flows. What is the net cash provided by (used in)investing activities?

Condensed financial data of Monopoly Corporation appear below: Monopoly Corporation Comparative Balance Sheet December 31 Current Year Prior Year Assets Cash $44,000 $28,000 Accounts receivable A 32,000 Inventories B 70,000 Prepaid rent 2,500 2,000 Property,plant,and equipment 224,000 200,000 Accumulated depreciation (55,000)(40,000) Total assets $341,500 $292,000 Liabilities and Stockholders' Equity Accounts payable $38,000 $34,000 Accrued liabilities 10,000 12,000 Notes payable (long-term)130,000 150,000 Contributed capital 50,000 25,000 Retained earnings 113,500 71,000 Total liabilities and stockholders' equity $341,500 $292,000 Monopoly Corporation Income Statement Year Ended December 31 Sales $477,500 Expenses Cost of goods sold $290,000 Selling,general,and administrative expenses 94,000 Depreciation expense C Interest expense 9,000 Income taxes ______D 425,000 Net income $ 52,500 Monopoly Corporation Cash Flow Statement Year End December 31 Cash Flows from Operating Activities Net income $52,500 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 15,000 Changes in current assets and current liabilities: Accounts Receivable (4,000) Inventories (20,000) Prepaid Expenses E Accounts Payable 4,000 Accrued Liabilities F Net cash provided by (used in)operating activities G Cash flows from investing activities Purchase of property,plant,and equipment (24,000) Net cash provided by (used in)investing activities (24,000) Financing activities Additional capital contributed by stockholders H Payments on long-term debt (20,000) Payment of cash dividends I Net cash provided by (used in)financing activities J Increase in cash and cash equivalents 16,000 Cash and cash equivalents,beginning of period 28,000 Cash and cash equivalents,end of period $44,000 A cash dividend was declared and paid in full to stockholders during the year. Required: Solve for the missing numbers and summarize your answers in the table below.Be sure to indicate in parentheses ( )if the missing number is negative (that is,a cash outflow).

Westmoreland Corporation prepared its statement of cash flows for the year.The following information is taken from that statement: What is the cash balance at the beginning of the year?

A healthy company typically shows positive cash flows in the financing activities section of the statement of cash flows.

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

A ski resort with a calendar year-end is likely to have:

Free cash flow is a positive cash flow from operating activities:

When the indirect method is used,details from which of the following balance sheet accounts are used in calculating both operating and financing cash flows?

ABC Company issued 30,000 shares of common stock in January.In August,the company repurchased 5,000 shares for the treasury.When reporting these transactions in the statement of cash flows,ABC Company ________ combine them into one transaction in the ________ activities section.

If the calculation of cash flows from operating activities starts with net income,the company: