Exam 12: Statement of Cash Flows

The payment of interest on bonds is classified as a cash outflow from operating activities on the statement of cash flows.

Mill Garden Company's income statement for the year shows a net loss of $135,000.Additional information for the year follows: What is the net cash provided by (used in)operating activities?

Selected balance sheet information and the income statement for Pioneer Industries for the current year are presented below. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Cash flows from financing activities:

If Cost of Goods Sold is $72,500 and the beginning and ending Inventory balances are $9,000 and $6,500,respectively,inventory purchases for cash equal:

When the net cash flows from operating,investing,and financing activities are combined to arrive at the overall net change in cash,a net decrease in cash is subtracted from the beginning cash balance to calculate the ending cash balance.

A company purchased money market funds with cash during the current year.Which of the following statements is correct?

Which method of preparing the operating activities section of the statement of cash flows consists of a summary of each component of operating transactions that result in either a debit or a credit to cash?

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

The Extra Surplus Company's Balance Sheet for December 31,2017 and the Income Statement for 2018 are shown below. Additional data: • Sales were $13,000;$8,000 in cash was received from customers. • Bought new land for cash,$10,000. • Sold other land for its book value of $5,000. • Paid $1,000 principal on the long-term note payable and $1,000 in interest. • Issued new shares of stock for $10,000 cash. • Cash dividends of $1,000 were declared and paid to stockholders. • Paid $5,500 on accounts payable. • No inventory purchases were made;other expenses were incurred on account. • All wages were paid in cash. • Other expenses were on account. Required: Part a.Prepare a balance sheet at December 31,2018. Part b.Prepare the statement of cash flows using the direct method.

Using the indirect method,which of the following would not be added to net income?

Maya Company's purchase of 100 shares of Labrador Inc.common stock would be reported as a financing activity on its statement of cash flows.

Which of the following journal entries has an effect on cash provided by (used in)operating activities?

What is the purpose of the statement of cash flows?

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

Marathon,Inc.showed Salaries and Wages Expense of $244,000 on its income statement.If the Salaries and Wages Payable account was $27,000 at the beginning of the year and $18,500 at the end of the year,how much cash was paid to employees?

Almost all U.S.companies have used the indirect method of preparing the statement of cash flows:

Which of the following equations is correct?

A company has a net cash inflow from operating activities of $789,000,a net cash outflow of $50,000 from investing activities and a net cash inflow of $100,000 from financing activities.The company paid $124,000 in interest,$186,500 in income taxes,and $200,000 in cash dividends.Which of the following statements about the statement of cash flows is not correct?

When preparing the operating activities section of the statement of cash flows using the indirect method,a decrease in accounts receivable is subtracted from net income.