Exam 11: Statement of Cash Flows

Which of the following changes in retained earnings during a period will be reported in the financing activities section of the statement of cash flows? 1. Declaration and payment of a cash dividend during the period. 2. Net income for the period.

All of the following adjustments would be deducted in determining net cash provided by operating activities except a(n)

The primary purpose of the statement of cash flows is to

The net income reported on the income statement for the current year was $1,360,000. Depreciation recorded on plant assets was $257,000. Accounts receivable and inventories increased by $72,000 and $48,000, respectively. Prepaid expenses and accounts payable decreased by $6,000 and $66,000, respectively. How much cash was provided by operating activities?

The category that is generally considered to be the best measure of a company's ability to continue as a going concern is

The acquisition of land by issuing common stock is

The cost of goods sold during the year was $380,000. Inventory increased by $12,000 during the year and accounts payable decreased by $19,000 during the year. Using the direct method of reporting cash flows from operating activities, cash payments for inventory total

In addition to the three basic financial statements, which of the following is also a required financial statement?

Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows. Indicate where, if at all, a stock dividend declared and issued would be classified on the statement of cash flows.

Of the items below, the one that appears first on the statement of cash flows is

A transaction involving a gain on the sale of equipment affects cash provided (used) by

Tito Company reports a $20,000 increase in inventory and a $5,000 decrease in accounts payable during the year. Cost of Goods Sold for the year was $282,000. Using the direct method of reporting cash flows from operating activities, cash payments made to suppliers were

Catalina Company reported a net loss of $15,000 for the year ended December 31, 2017. During the year, accounts receivable decreased $7,500, inventory increased $12,000, accounts payable increased by $15,000, and depreciation expense of $9,000 was recorded. During 2017, operating activities

Collections on accounts receivable will lag behind sales, and accrual sales during a period will exceed cash collections during the

If a gain of $81,000 is realized when selling (for cash) a building having a book value of $600,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

A loss on sale of equipment is added to net income in determining cash provided by operations under the indirect method.

Cash used in operations will exceed cash generated by operations in the maturity phase of the product life cycle.

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 $6,000) 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 operating activities?

The statement of cash flows explains the difference between net income, as shown on the income statement, and the net cash flows generated from operations.

LKN Company reported net income of $90,000 for the year. During the year, accounts receivable increased by $6,000, accounts payable decreased by $4,000 and depreciation expense of $10,000 was recorded. Net cash provided by operating activities for the year is