Exam 11: Statement of Cash Flows

The net income reported on the income statement for the current year was $240,000. Depreciation was $52,000. Accounts receivable and inventories decreased by $5,000 and $15,000, respectively. Prepaid expenses and accounts payable increased, respectively, by $500 and $14,000. How much cash was provided by operating activities?

The following information relates to Layline Company: Using the direct method of reporting cash flows from operating activities, what was the amount of cash paid for insurance premiums by Layline during 2017?

Investing activities include

When using the indirect method to compute cash provided by operating activities

In developing the cash flows from operating activities, most companies in the United States

Accounts receivable arising from sales to customers amounted to $120,000 and $105,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $457,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

Assume that the Quinn Corporation uses the indirect method to depict cash flows. Indicate where, if at all, stock issued for equipment would be classified on the statement of cash flows.

APS Company issued 20,000 shares of $1 par common stock for $40 per share during 2017. The company paid dividends of $48,000 and issued long-term notes payable of $440,000 during the year. What amount of cash flows from financing activities will be reported on the statement of cash flows?

Which of the following would not be an adjustment to net income using the indirect method?

During the year, Salaries Payable decreased by $12,000. Using the direct method of reporting cash flows from operating activities, if Salaries Expense amounted to $450,000 for the year, the cash paid to employees (including deductions from gross pay) is

In preparing a statement of cash flows, the issuance of debt should be reported separately from the retirement of debt.

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

Cash receipts from interest and dividends are classified as

Free cash flow provides an indication of a company's ability to

Under IFRS, the cash flow statement can be prepared using

Starting with net income and adjusting it for items that affected reported net income but which did not affect cash is called the

The statement of cash flows

The growth phase of the product life cycle occurs when the company is purchasing fixed assets and beginning to produce and sell.

For external reporting, a company must prepare either an income statement or a statement of cash flows, but not both.

Minette Company reported net income of $200,000 for the year ended December 31, 2017. During the year, inventories decreased by $40,000, accounts payable decreased by $60,000, depreciation expense was $45,000 and a gain on disposal of equipment of $15,000 was recorded. Net cash provided by operating activities in 2017 using the indirect method was