Exam 11: The Statement Of Cash Flows

Match these terms with their correct definition. -Include cash received from the sale of property, plant, and equipment and cash paid to purchase equity securities.

The use of a ______________ provides a means of systematically analyzing changes in the balance sheet amounts, along with the information from the income statement and any additional information, to produce the statement of cash flows.

Each of the following transactions would be classified as an investing activity except:

Mary Kay Cosmetics Selected data and additional information from the company's records are presented below: Additional information: -Refer to Mary Kay Cosmetics. What is the amount paid for operating expenses during 2020?

Use the following codes to indicate how the cash flow effect, if any, of each transaction would be reported on a statement of cash flows if the operating activities section is prepared using the direct method. (Choices may be used more than once.) -Sold office building for cash.

Which of the following measures can be used to evaluate a company's ability to meet future debt obligations after paying operating expenses, dividends and making capital expenditures?

Cash flows from borrowing and paying off a 90-day bank loan are classified as

Mary Kay Cosmetics Selected data and additional information from the company's records are presented below: Additional information: -Refer to Mary Kay Cosmetics. Prepare the company's statement of cash flows for the year ended December 31, 2020. Use the indirect method of determining net cash flows from operating activities.

Upon review of a statement of cash flows, the following was noted: From this information, it is likely that the company is

Maritime Marine Services Selected data from the financial statements for the years ended December 31, 2020 and 2019, are presented below: The following additional information was obtained from the company's records: -Refer to Maritime Marine Services. What was the amount of cash dividends paid during 2020?

Use the following codes to indicate how the cash flow effect, if any, of each transaction or event would be reported on a statement of cash flows if the operating activities section is prepared using the indirect method. (Choices may be used more than once.) -Recognized a gain on the sale of securities.

A company reported net income for the current year. Which of the following business transactions would cause its cash from operating activities to be higher than its net income?

Mary Kay Cosmetics Selected data and additional information from the company's records are presented below: Additional information: -Refer to Mary Kay Cosmetics. What amount of cash was collected from customers during 2020?

Metz Vets The company’s accountant prepared this reminder for his intern: Cash = CL + LTL + CS + RE ? NCCA ? LTA where: CL = Current liabilities LTL = Long-term liabilities CS = Common stock RE = Retained earnings NCCA = Noncash current assets LTA = Long-term assets -Refer to Metz Vets. Which of the following activities results in a cash inflow?

When using the indirect method to determine operating cash flows, how is the issuance of stock to retire a long-term debt shown on a statement of cash flows?

McCullow Investment Group One of the firm's financial analysts is assessing the performance of three particular companies whose cash flow statements for the last three years are presented below: -Refer to Merry Maids Company. Describe the link(s) between a statement of cash flows, the balance sheet, and the income statement if a company uses the indirect method to prepare the operating activities section of the statement of cash flows.

Midtown Diner, Inc., purchased $10,000 of paper napkins for its restaurants. At the end of the period, three-fourths of the bill for the napkins is unpaid while an inventory revealed that 40% of the napkins were still on hand. What combination of amounts would affect the income statement and statement of cash flows?

Mary Kay Cosmetics Selected data and additional information from the company's records are presented below: Additional information: -Refer to Mary Kay Cosmetics. Prepare the operating activities section of a statement of cash flows for 2020 assuming the use of the indirect method of determining net cash flow from operating activities.

Which method of preparing the operating activities section of a statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses?

Mary Kay Cosmetics Selected data and additional information from the company's records are presented below: Additional information: -Refer to Mary Kay Cosmetics. Prepare the operating activities section of the statement of cash flows for 2020 assuming the direct method is used to determine net cash flow from operating activities.