Exam 23: Statement of Cash Flows

Use the following information for questions 98 and 99. Fleming Company provided the following information on selected transactions during 2015: Dividends paid to preferred stockholders 250,000 Loans made to affiliated corporations 700,000 Proceeds from issuing bonds 800,000 Proceeds from issuing preferred stock 1,050,000 Proceeds from sale of equipment 400,000 Purchases of inventories 1,200,000 Purchase of land by issuing bonds 300,000 Purchases of treasury stock 600,000 -The net cash provided (used) by investing activities during 2015 is

When preparing a statement of cash flows (indirect method), which of the following is not an adjustment to reconcile net income to net cash provided by operating activities?

Use the following information for questions 51 through 55. Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Harlan Mining Co. for 2015 and 2014 are provided below. The following additional data were provided: 1. Dividends for the year 2015 were $144,000. 2. During the year, equipment was sold for $180,000. This equipment cost $264,000 originally and had a book value of $216,000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. -The net cash provided (used) by investing activities is

Which of the following is true regarding the statement of cash flows and IFRS?

During 2015, Greta Company earned net income of $212,000 which included depreciation expense of $39,000. In addition, the company experienced the following changes in the account balances listed below: Based upon this information what amount will be shown for net cash provided by operating activities for 2015?

The amount to be shown on the cash flow statement as net cash provided by investing activities would total what amount?

Which of the following is false with regard to IFRS and the statement of cash flows?

Surf Company follows IFRS for its external financial reporting. The following amounts were available at December 31, 2015: Interest received \ 25,000 Dividends received 16,000 Under IFRS, what is the maximum amount that could be reported for cash provided by operating activities for Surf Company for the year ended December 31, 2015?

During 2015, equipment was sold for $312,000. The equipment cost $524,000 and had a book value of $288,000. Accumulated Depreciation-Equipment was $1,374,000 at 12/31/14 and $1,470,000 at 12/31/15. Depreciation expense for 2015 was

Use the following information for questions 106 through 108. Jamison Corp.'s balance sheet accounts as of December 31, 2015 and 2014 and information relating to 2015 activities are presented below. Information relating to 2015 activities: $\bullet$ Net income for 2015 was $1,300,000. $\bullet$ Cash dividends of $400,000 were declared and paid in 2015. $\bullet$ Equipment costing $1,000,000 and having a carrying amount of $320,000 was sold in 2015 for $360,000. $\bullet$ A long-term investment was sold in 2015 for $320,000. There were no other transactions affecting long-term investments in 2015. $\bullet$ 20,000 shares of common stock were issued in 2015 for $25 a share. $\bullet$ Short-term investments consist of treasury bills maturing on 6/30/16. -Net cash provided by Jamison's 2015 financing activities was

The following information was taken from the 2015 financial statements of Jenny Gardner Corporation: Inventory, January 1,2015 \ 90,000 Inventory, December 31,2015 120,000 Accounts payable, January 1,2015 75,000 Accounts payable, December 31, 2015 120,000 Sales revenue 600,000 Cost of qoods sold 400,000 If the direct method is used in the 2015 statement of cash flows, what amount should Jenny Gardner report as cash payments to suppliers?

An increase in inventory balance would be reported in a statement of cash flows using the indirect method (reconciliation method) as a(n)

When accounts receivable decrease during a period, cash-basis revenues are higher than revenues reported on an accrual basis.

Use the following information for questions 102 and 103. A flood damaged a building and contents. Floods are unusual and infrequent in this area. The receipts from insurance companies totaled $500,000, which was $150,000 less than the book values. The tax rate is 30%. -On the statement of cash flows (indirect method), the receipts from insurance companies should

Dolan Company reports its income from investments under the equity method and recognized income of $25,000 from its investment in Moss Co. during the current year, even though no dividends were declared or paid by Moss during the year. On Dolan's statement of cash flows (indirect method), the $25,000 should

The primary purpose of the statement of cash flows is to provide cash-basis information about the company's operating, investing, and financing activities.

To arrive at net cash provided by operating activities, it is necessary to report revenues and expenses on a cash basis. This is done by

Lindsay Corporation had net income for 2015 of $2,500,000. Additional information is as follows: Depreciation of plant assets \ 1,200,000 Amortization of intangibles 240,000 Increase in accounts receivable 420,000 Increase in accounts payable 540,000 Lindsay's net cash provided by operating activities for 2015 was

Use the following information for questions 85 through 87. The balance sheet data of Kohler Company at the end of 2015 and 2014 follow: 2015 2014 Cash \ 100,000 \ 140,000 Accounts receivable (net) 240,000 180,000 Inventory 280,000 180,000 Prepaid expenses 40,000 100,000 Buildings and equipment 360,000 300,000 Accumulated depreciation\_buildings and equipment (72,000) (32,000) Land 360,000 160,000 Totals \1 ,308,000 \1 ,028,000 Accounts payable \ 272,000 \ 220,000 Accrued expenses 48,000 72,000 Notes payable-bank, long-term 160,000 Mortgage payable 120,000 Common stock, \ 10 par 836,000 636,000 Retained earnings (deficit) 32,000 (60,000) \1 ,308,000 \1 ,028,000 Land was acquired for $200,000 in exchange for common stock, par $200,000, during the year; all equipment purchased was for cash. Equipment costing $20,000 was sold for $8,000; book value of the equipment was $16,000 and the loss was reported as an ordinary item in net income. Cash dividends of $40,000 were charged to retained earnings and paid during the year; the transfer of net income to retained earnings was the only other entry in the Retained Earnings account. In the statement of cash flows for the year ended December 31, 2015, for Naley Company: -The net cash provided by operating activities was

Jarvis, Inc. reported net income of $44,000 for the year ended December 31, 2015 Included in net income were depreciation expense of $8,400 and a gain on sale of equipment of $1,700. Each of the following accounts increased during 2015: Accounts receivable \ 2,200 Inventory \ 4,500 Prepaid rent \ 6,800 Available-for-sale securities \ 1,000 Accounts payable \ 5,000 What is the amount of cash provided by operating activities for Jarvis, Inc. for the year ended December 31, 2015?