Exam 12: Reporting and Analyzing Cash Flows

The following transactions and events occurred during the year.Assuming that this company uses the indirect method to report cash provided by operating activities,indicate where each item would appear on its statement of cash flows by placing an x in the appropriate column.

When preparing the operating activities section of the statement of cash flows using the indirect method,an increase in wages payable is subtracted from net income.

Based on the information provided below for Krackle Corp.,complete the following worksheet to be used to prepare the statement of cash flows using the indirect method. (a)Net income for the year was $30,000. (b)Dividends of $10,000 were declared and paid. (c)Krackle's only noncash expense was depreciation which totaled $50,000. (d)The company purchased plant assets for $70,000. (e)Notes payable in the amount of $40,000 were issued during the year for cash.

The reporting of investing activities in the statement of cash flows is identical under either the direct or indirect methods.

A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash,resulting in a loss of $3,000.The amount to be reported under cash flows from financing activities is:

The cash flow on total assets ratio is calculated by:

In preparing a company's statement of cash flows for the most recent year using the indirect method,the following information is available: Net cash provided by operating activities was:

The following information is available for the Aarons Corporation: Additional information: (1)There was no gain or loss on the sales of the long-term investments,nor on the bonds retired. (2)Old equipment with an original cost of $37,550 was sold for $2,100 cash. (3)New equipment was purchased for $67,550 cash. (4)Cash dividends of $33,600 were paid. (5)Additional shares of stock were issued for cash. Prepare a complete statement of cash flows for calendar-year 20X2 using the indirect method.

Activities that involve the production or purchase of merchandise and the sale of goods and services to customers,including expenditures related to administering the business,are classified as:

When preparing the operating activities section of the statement of cash flows using the indirect method,non-operating gains are subtracted from net income.

Fernwood Company is preparing the company's statement of cash flows for the fiscal year just ended.The following information is available: The ending balance in retained earnings is:

Investments that are readily convertible to a known amount of cash and are sufficiently close to their maturity so that the market value is unaffected by interest rate changes are ________.

Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $28,000; net cash used in investing activities was $10,000 and net cash used in financing activities was $12,000.If the beginning cash balance is $5,000,what is the ending cash balance?

Based on the information in the following income statement and balance sheet for Monterey Corporation,determine the cash flows from operating activities using the direct method.

A machine with a cost of $130,000,accumulated depreciation of $85,000,and current year depreciation expense of $17,000 is sold for $40,000 cash.The amount that should be reported as a source of cash under cash flows from investing activities is:

Rowan,Inc.'s,income statement is shown below.Based on this income statement and the other information provided,calculate the net cash provided by operations using the indirect method. Additional information:

Financing activities include receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks.

Jamison Company reports depreciation expense of $35,000 for Year 2.Also,equipment costing $140,000 was sold for a $5,000 gain in Year 2.The following selected information is available for Jamison Company from its comparative balance sheet.Compute the cash received from the sale of the equipment. At December 31 Year 2 Year 1 Equipment \ 610,000 \ 750,000 Accumulated Depreciation-Equipment 428,000 500,000

Noncash investing and financing activities may be disclosed in:

When using the indirect method to calculate and report the net cash provided or used by operating activities,net income is adjusted for all but which of the following?