Exam 12: Reporting and Analyzing Cash Flows

Use the following information to calculate the net cash provided or used by financing activities for the Streams Corporation: (a)Net income,$10,000 (b)Sold common stock for $40,000 cash (c)Paid cash dividend of $13,000 (d)Paid bond payable,$28,000 (e)Purchased equipment for $12,000 cash

A cash equivalent is:

The accountant for Crusoe Company is preparing the company's statement of cash flows for the fiscal year just ended.The following information is available: The amount of cash dividends paid during the year would be:

The indirect method for computing and reporting net cash flows from operating activities involves adjusting the net income figure to obtain net cash provided or used by operating activities.

Which of the following is included in the cash flows from financing activities section of the statement of cash flows?

If a company is using the indirect method to prepare the statement of cash flows,identify where an increase in the accounts receivable account should be reported:

Equipment costing $200,000 with accumulated depreciation of $160,000 is sold at a loss of $10,000.This implies that $30,000 cash was received from the sale.

Use the following information about the calendar-year cash flows of Park Company to prepare a statement of cash flows (direct method)and a schedule of noncash investing and financing activities.

Preparation of the statement of cash flows does not involve:

A company's Inventory balance at the end of the year was $188,000 and $200,000 at the beginning of the year.Its Accounts Payable balance at the end of the year was $84,000 and $80,000 at the beginning of the year,and its cost of goods sold for the year was $720,000.The company's total amount of cash payments for merchandise during the year equals:

Northington,Inc.is preparing the company's statement of cash flows for the fiscal year just ended.Using the following information,determine the amount of cash flows from financing activities:

Which of the following transactions or events should be reported as a source of cash from operating activities when using the direct method?

Investing activities include: (a)the purchase and sale of long-term assets,(b)lending and collecting on notes receivable,and (c)the purchase and sale of short-term investments in the securities of other entities,other than cash equivalents and trading securities.

Marshland Company is preparing the company's statement of cash flows for the fiscal year just ended.The following information is available: The amount of cash paid for dividends was:

The statement of cash flows is:

Receipts of cash dividends and interest earned on loans are classified as investing activities.

Use the following information to calculate cash paid for income taxes:

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. Cost of goods sold \ 500,000 Merchandise inventory, January 1 85,000 Merchandise inventory, December 31 97,000 Accounts payable, January 1 68,000 Accounts payable, December 31 60,000

The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is:

The payment of cash dividends never changes the balance of retained earnings.