Exam 11: Statement of Cash Flows

Financing activities involve

Which of the following would not be needed to determine net cash provided by operating activities?

Which one of the following items is not generally used in preparing a statement of cash flows?

Vangaurd Company purchased treasury stock with a cost of $55,000 during 2017. During the year, the company paid dividends of $20,000 and issued bonds payable for proceeds of $876,000. Cash flows from financing activities for 2017 total

Zoum Corporation had the following transactions during 2017: 1. Issued $250,000 of par value common stock for cash. 2. Recorded and paid wages expense of $120,000. 3. Acquired land by issuing common stock of par value $100,000. 4. Declared and paid a cash dividend of $20,000. 5. Sold a long-term investment (cost $8,000) for cash of $6,000. 6. Recorded cash sales of $800,000. 7. Bought inventory for cash of $320,000. 8. Acquired an investment in Zynga stock for cash of $42,000. 9. Converted bonds payable to common stock in the amount of $1,000,000. 10. Repaid a 6-year note payable in the amount of $440,000. What is the net cash provided by financing activities?

The sale of land for cash would be classified as a cash inflow from an investing activity.

Which of the following would not create a cash flow?

During 2017, Lowes Company sold equipment with a book value of $120,000 for proceeds of $145,000. The company purchased new equipment for $320,000 by signing a long-term note payable. No other transactions impacted long-term asset accounts during 2017. The investing section of the statement of cash flows will report

Cash from operations and net income are approximately the same during the

The phase in the product life cycle when a company is purchasing fixed assets and beginning to produce and sell is the

North Company has other operating expenses of $360,000. There has been a decrease in prepaid expenses of $16,000 during the year, and accrued liabilities are $24,000 larger than in the prior period. Using the direct method of reporting cash flows from operating activities, what were North's cash payments for operating expenses?

The issuance of debt to purchase assets would be classified as a(n)

The statement of cash flows will not report the

Assume that the Quinn Corporation uses the indirect method to depict cash flows. Indicate where, if at all, income taxes paid would be reported on the statement of cash flows.

Hunter Company reported a net loss of $12,000 for the year ended December 31, 2017. During the year, accounts receivable decreased $28,000, inventory increased $20,000, accounts payable increased by $30,000, and depreciation expense of $24,000 was recorded. During 2017, operating activities

The activity from the balance sheet to be presented in the financing activities section of the statement of cash flows is based on an analysis of stockholders' equity only.

If $1,200,000 of bonds are issued during the year but $2,500,000 of old bonds are retired during the year, the statement of cash flows will show a(n)

The net income reported on the income statement for the current year was $480,000. Depreciation was $62,000. Accounts receivable and inventories decreased by $20,000 and $32,000, respectively. Prepaid expenses and accounts payable increased, respectively, by $2,000 and $16,000. How much cash was provided by operating activities?

A primary objective of the statement of cash flows is to show the income or loss on investing and financing transactions.

The net income reported on the income statement for the current year was $510,000. Depreciation recorded on plant assets was $76,000. Accounts receivable and inventories increased by $40,000 and $16,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $32,000, respectively. How much cash was provided by operating activities?