Use the following information for questions 83 and 84. Napier Co. provided the following information on selected transactions during 2015: \[\begin{array} { l r } \text { Purchase of land by issuing bonds } & \$ 500,000 \\ \text { Proceeds from issuing bonds } & 1,500,000 \\ \text { Purchases of inventory } & 1,900,000 \\ \text { Purchases of treasury stock } & 300,000 \\ \text { Loans made to affiliated corporations } & 700,000 \\ \text { Dividends paid to preferred stockholders } & 200,000 \\ \text { Proceeds from issuing preferred stock } & 800,000 \\ \text { Proceeds from sale of equipment } & 150,000 \end{array}\] -The net cash provided by financing activities during 2015 is

A) $1,600,000. B) $1,800,000. C) $2,100,000. D) $2,300,000. A) $1,600,000. B) $1,800,000. C) $2,100,000. D) $2,300,000.

A) treasury bills, commercial paper, and money market funds purchased with excess cash. B) investments with original maturities of three months or less. C) readily convertible into known amounts of cash. D) All of these answers are correct. A) treasury bills, commercial paper, and money market funds purchased with excess cash. B) investments with original maturities of three months or less. C) readily convertible into known amounts of cash. D) All of these answers are correct.

Alex Company prepares its statement of cash flows using the direct method for operating activities. For the year ended December 31, 2015, Alex Company reports the following activity: $\begin{array}{lr} \text { Sales on account } & \$ 1,400,000 \\ \text { Cash sales } & 740,000 \\ \text { Decrease in accounts receivable } & 610,000 \\ \text { Increase in accounts payable } & 72,000 \\ \text { Increase in inventory } & 48,000 \\ \text { Cost of qood sold } & 1,050,000 \end{array}$ What is the amount of cash collections from customers reported by Alex Company for the year ended December 31, 2015?

A) $2,140,000 B) $2,010,000 C) $2,750,000 D) $1,530,000 A) $2,140,000 B) $2,010,000 C) $2,750,000 D) $1,530,000

In preparing Titan Inc.'s statement of cash flows for the year ended December 31, 2015, the following amounts were available: \[\begin{array} { l r } \text { Collect note receivable } & \$ 410,000 \\ \text { Issue bonds payable } & 426,000 \\ \text { Purchase treasury stock } & 200,000 \end{array}\] What amount should be reported on Titan, Inc.'s statement of cash flows for investing activities?

A) $410,000 B) $210,000 C) $836,000 D) $226,000 A) $410,000 B) $210,000 C) $836,000 D) $226,000

Use the following information for questions 83 and 84. Napier Co. provided the following information on selected transactions during 2015: \[\begin{array} { l r } \text { Purchase of land by issuing bonds } & \$ 500,000 \\ \text { Proceeds from issuing bonds } & 1,500,000 \\ \text { Purchases of inventory } & 1,900,000 \\ \text { Purchases of treasury stock } & 300,000 \\ \text { Loans made to affiliated corporations } & 700,000 \\ \text { Dividends paid to preferred stockholders } & 200,000 \\ \text { Proceeds from issuing preferred stock } & 800,000 \\ \text { Proceeds from sale of equipment } & 150,000 \end{array}\] -The net cash provided (used) by investing activities during 2015 is

A) $150,000. B) $(550,000). C) $(1,050,000). D) $(2,250,000). A) $150,000. B) $(550,000). C) $(1,050,000). D) $(2,250,000).

The following information on selected cash transactions for 2015 has been provided by Mancuso Company: $\begin{array}{lr} \text { Proceeds from sale of land } & \$ 210,000 \\ \text { Proceeds from long-term borrowings } & 400,000 \\ \text { Purchases of plant assets } & 144,000 \\ \text { Purchases of inventories } & 680,000 \\ \text { Proceeds from sale of Mancuso common stock } & 240,000 \end{array}$ What is the cash provided (used) by investing activities for the year ended December 31, 2015, as a result of the above information?

A) $66,000 B) $256,000. C) $210,000. D) $850,000. A) $66,000 B) $256,000. C) $210,000. D) $850,000.

Exam 23: Statement of Cash Flows

Use the following information for questions 83 and 84. Napier Co. provided the following information on selected transactions during 2015: Purchase of land by issuing bonds \ 500,000 Proceeds from issuing bonds 1,500,000 Purchases of inventory 1,900,000 Purchases of treasury stock 300,000 Loans made to affiliated corporations 700,000 Dividends paid to preferred stockholders 200,000 Proceeds from issuing preferred stock 800,000 Proceeds from sale of equipment 150,000 -The net cash provided by financing activities during 2015 is

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Question 121

Hartman, Inc. has prepared the following comparative balance sheets for 2014 and 2015: $Hartman, Inc. has prepared the following comparative balance sheets for 2014 and 2015: 1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period. 2. The Retained Earnings account has been charged for dividends of $148,000 and credited for the net income for the year. The income statement for 2015 is as follows: \begin{array} { l r } \text { Sales revenue } & \$ 1,980,000 \\ \text { Cost of sales } & 1,089,000 \\ \text { Gross profit } & 891,000 \\ \text { Operating expenses } & 680,000 \\ \text { Net income } & \$ 211,000 \end{array} Instructions (a) From the information above, prepare a statement of cash flows (indirect method) for Hartman, Inc. for the year ended December 31, 2015. (b) From the information above, prepare a schedule of cash provided by operating activities using the direct method.$ 1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period. 2. The Retained Earnings account has been charged for dividends of $148,000 and credited for the net income for the year. The income statement for 2015 is as follows: Sales revenue \ 1,980,000 Cost of sales 1,089,000 Gross profit 891,000 Operating expenses 680,000 Net income \ 211,000 Instructions (a) From the information above, prepare a statement of cash flows (indirect method) for Hartman, Inc. for the year ended December 31, 2015. (b) From the information above, prepare a schedule of cash provided by operating activities using the direct method.

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Question 122

When preparing a statement of cash flows, an increase in accounts payable during a period would require which of the following adjustments in determining cash flows from operating activities?

(Short Answer)

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Question 123

Wave, Inc. follows IFRS for its external financial reporting. The statement of cash flows reports changes in cash and cash equivalents, which of the following is not considered cash or a cash equivalent under IFRS?

(Multiple Choice)

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Question 124

Cash flows from operating activities (indirect and direct methods).Presented below is the income statement of Cowan, Inc.: Sales revenue \ 380,000 Cost of goods sold 225,000 Gross profit \ 155,000 Operating expenses 85,000 Income before income taxes 70,000 Income taxes 28,000 Net income \ 42,000 In addition, the following information related to net changes in working capital is presented: $Cash flows from operating activities (indirect and direct methods).Presented below is the income statement of Cowan, Inc.: \begin{array} { l r } \text { Sales revenue } & \$ 380,000 \\ \text { Cost of goods sold } & 225,000 \\ \text { Gross profit } & \$ 155,000 \\ \text { Operating expenses } & 85,000 \\ \text { Income before income taxes } & 70,000 \\ \text { Income taxes } & 28,000 \\ \text { Net income } & \$ 42,000 \end{array} In addition, the following information related to net changes in working capital is presented: The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $2,600. InstructionsPrepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows: (a) using the indirect method. (b) using the direct method.$ The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $2,600. InstructionsPrepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows: (a) using the indirect method. (b) using the direct method.

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Question 125

The net cash provided by operating activities in Sosa Company's statement of cash flows for 2015 was $155,000. For 2015, depreciation on plant assets was $45,000, amortization of patent was $8,000, and cash dividends paid on common stock was $54,000. Based only on the information given above, Sosa's net income for 2015 was

(Multiple Choice)

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Question 126

Cash equivalents are

(Multiple Choice)

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Question 127

Alex Company prepares its statement of cash flows using the direct method for operating activities. For the year ended December 31, 2015, Alex Company reports the following activity: Sales on account \ 1,400,000 Cash sales 740,000 Decrease in accounts receivable 610,000 Increase in accounts payable 72,000 Increase in inventory 48,000 Cost of qood sold 1,050,000 What is the amount of cash collections from customers reported by Alex Company for the year ended December 31, 2015?

(Multiple Choice)

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Question 128

Ocean Company follows IFRS for its external financial reporting. Which of the following methods of reporting are acceptable under IFRS for the items shown?

(Short Answer)

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Question 129

Companies report the cash flows from purchases and sales of trading securities as cash flows from operating activities.

(True/False)

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Question 130

Use the following information for questions 113 and 114. Smiley Corp.'s transactions for the year ended December 31, 2015 included the following: $\bullet$ Purchased real estate for $625,000 cash which was borrowed from a bank. $\bullet$ Sold available-for-sale securities for $500,000. $\bullet$ Paid dividends of $600,000. $\bullet$ Issued 500 shares of common stock for $250,000. $\bullet$ Purchased machinery and equipment for $125,000 cash. $\bullet$ Paid $450,000 toward a bank loan. $\bullet$ Reduced accounts receivable by $100,000. $\bullet$ Increased accounts payable $200,000. -Smiley's net cash used in investing activities for 2015 was

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Question 131

A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a statement of cash flows (indirect method), this event would be reflected as a(n)

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Question 132

The net changes in the balance sheet accounts of Keating Corporation for the year 2015 are shown below. 1. On January 2, 2015 short-term investments (classified as available-for-sale) costing $121,000 were sold for $155,000. 2. The company paid a cash dividend on February 1, 2015. 3. Accounts receivable of $16,200 and $19,400 were considered uncollectible and written off in 2015 and 2014, respectively. 4. Major repairs of $33,000 to the equipment were debited to the Accumulated Depreciation account during the year. No assets were retired during 2015. 5. The wholly owned subsidiary reported a net loss for the year of $20,000. The loss was recorded by the parent. 6. At January 1, 2015, the cash balance was $166,000. Instructions Prepare a statement of cash flows (indirect method) for the year ended December 31, 2015. Keating Corporation has no securities which are classified as cash equivalents.

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Question 133

In preparing Titan Inc.'s statement of cash flows for the year ended December 31, 2015, the following amounts were available: Collect note receivable \ 410,000 Issue bonds payable 426,000 Purchase treasury stock 200,000 What amount should be reported on Titan, Inc.'s statement of cash flows for investing activities?

(Multiple Choice)

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Question 134

Use the following information for questions 83 and 84. Napier Co. provided the following information on selected transactions during 2015: Purchase of land by issuing bonds \ 500,000 Proceeds from issuing bonds 1,500,000 Purchases of inventory 1,900,000 Purchases of treasury stock 300,000 Loans made to affiliated corporations 700,000 Dividends paid to preferred stockholders 200,000 Proceeds from issuing preferred stock 800,000 Proceeds from sale of equipment 150,000 -The net cash provided (used) by investing activities during 2015 is

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Question 135

When using the indirect method to prepare the operating section of a statement of cash flows, which of the following is deducted from net income to compute cash provided by/used by operating activities?

(Multiple Choice)

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Question 136

The following information on selected cash transactions for 2015 has been provided by Mancuso Company: Proceeds from sale of land \ 210,000 Proceeds from long-term borrowings 400,000 Purchases of plant assets 144,000 Purchases of inventories 680,000 Proceeds from sale of Mancuso common stock 240,000 What is the cash provided (used) by investing activities for the year ended December 31, 2015, as a result of the above information?

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Question 137

When preparing a statement of cash flows, a decrease in prepaid insurance during a period would require which of the following adjustments in determining cash flows from operating activities?

(Short Answer)

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Question 138

The amortization of bond premium on long-term debt should be presented in a statement of cash flows (using the indirect method for operating activities) as a(n)

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Question 139

The issuance of stock dividends is entered on the cash flow worksheet, but is not reported in the statement of cash flows.

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Question 140

Showing 121 - 140 of 143

When preparing a statement of cash flows, an increase in accounts payable during a period would require which of the following adjustments in determining cash flows from operating activities?

Wave, Inc. follows IFRS for its external financial reporting. The statement of cash flows reports changes in cash and cash equivalents, which of the following is not considered cash or a cash equivalent under IFRS?

Cash equivalents are

Ocean Company follows IFRS for its external financial reporting. Which of the following methods of reporting are acceptable under IFRS for the items shown?

Companies report the cash flows from purchases and sales of trading securities as cash flows from operating activities.

A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a statement of cash flows (indirect method), this event would be reflected as a(n)

When using the indirect method to prepare the operating section of a statement of cash flows, which of the following is deducted from net income to compute cash provided by/used by operating activities?

When preparing a statement of cash flows, a decrease in prepaid insurance during a period would require which of the following adjustments in determining cash flows from operating activities?

The amortization of bond premium on long-term debt should be presented in a statement of cash flows (using the indirect method for operating activities) as a(n)

The issuance of stock dividends is entered on the cash flow worksheet, but is not reported in the statement of cash flows.

Financial Accounting and Accounting Standards

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Balance Sheet and Statement of Cash Flows

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Current Liabilities and Contingencies

Long-Term Liabilities

Stockholders Equity

Dilutive Securities and Earnings Per Share

Investments

Revenue Recognition

Accounting for Income Taxes

Accounting for Pensions and Postretirement Benefits

Accounting for Leases

Accounting Changes and Error Analysis

Full Disclosure in Financial Reporting

Appendix

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