Exam 21: Statement of Cash Flows

The cash flows from operating activities are reported by the direct method on the statement of cash flows.Determine the following: a.If sales for the current year were $700,000 and accounts receivable increased $25,000 during the year,what was the amount of cash received from customers? b.If sales salaries expense for the current years was $70,000 and sales salaries payable increased $25,000 during the year,what was the amount of cash payments for sales salaries?

Operating expenses other than depreciation expense for the year were $400,000.Accrued expenses payable decreased by $35,000.Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be:

The purpose of a cash flow statement is to show the inflows and outflows of cash.

On the Statement of Cash Flows,direct method,which of the following is a cash outflow from an operating activity?

One section of a statement of cash flows is financing activities.

When a corporation purchases a building for cash,it:

When comparing net cash provided by operating activities using the indirect versus direct methods:

Trundle Corporation reported net income of $40,000;depreciation expense of $11,000;sales of additional common shares of $20,000;and an increase in Accounts Payable of $7,000.Net cash flow from operating activities using the indirect method is:

Collins Corporation reported net income of $35,000;depreciation expenses of $20,000;a decrease in Accounts Payable of $2,000;and an increase in Accounts Receivable of $3,000.Net cash flow from operating activities using the indirect method is:

Cost of merchandise sold for the year was $850,000.Inventories were $60,000 and $120,000 at the beginning and end of the year,respectively.There were no changes in accounts payable from the beginning to the end of the year.Cash payment for merchandise to be reported on the cash flow statement using the direct method is:

Cash generated from operating activities may be computed by using:

A statement of cash flows would NOT disclose the effect of which of the following transactions?

Accounts Receivable amounted to $215,000 at the beginning of the year and $215,000 at the end of the year.Net income reported on the income statement for the year was $300,000.The net cash flow from operating activities on the cash flow statement using the indirect method is:

There was a utility bill received but not paid.How would this nonpayment affect the statement of cash flows operations section-indirect method?

If equipment is sold for $50,000,it is shown in the investing activities section.

Transactions involving the purchase and sale of fixed assets would be considered:

For each of the following items, indicate (by placing an X) whether the item would be found on the statement of cash flows in column 1, the direct approach for determining the cash flows from operating activities, column 2, the indirect approach for determining the cash flows from operating activities, column 3, cash flows from investing activities, column 4, cash flows from financing activities. If you identify that an item affects the cash flows from operation, indirect method, also indicate whether it will be increasing (+) or decreasing (-) the cash flows. - Col 1 Operating Direct Col 2 Operating Indirect Col 3 Investing Col 4 Financing Cash paid for merchandise inventory

For each of the following items, indicate (by placing an X) whether the item would be found on the statement of cash flows in column 1, the direct approach for determining the cash flows from operating activities, column 2, the indirect approach for determining the cash flows from operating activities, column 3, cash flows from investing activities, column 4, cash flows from financing activities. If you identify that an item affects the cash flows from operation, indirect method, also indicate whether it will be increasing (+) or decreasing (-) the cash flows. - Col 1 Operating Direct Col 2 Operating Indirect Col 3 Investing Col 4 Financing Cash paid for rent

An example of a noncash expense would be depreciation expense.

When preparing the statement of cash flows by the indirect method,if current assets have decreased,the difference is: