Exam 11: The Statement Of Cash Flows

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.) -Issued a twenty-year mortgage note for cash.

You are the Controller for McBride & Associates. Your accounting intern from the local university has been assigned the task of preparing your company's statement of cash flows. The intern has come to you with a question. She is not sure how to report some dividends the company had received during the year. She explains that on first thought, it seems like dividends represent a financing activity since they are related to shares of stock that companies issue to finance their businesses. But she is having second thoughts. Explain to your intern how dividends (both received and paid) should be classified on the cash flow statement.

Which of the following is not a financing activity?

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.) -Increase in the unearned revenue balance.

If Accounts Receivable decreased during the year, then cash collections must have been ____________________ than sales on account for the period.

An increase in retained earnings indicates that a cash dividend has been paid.

Cash flows from operating activities correspond to the cash effects of items that determine ____________________.

When a company sells its own common stock, it is a(n) ____________________ activity on the statement of cash flows.

Presented below is the operating activities section of a statement of cash flows for the current year: Which method of preparing the operating activities section was used?

When using the direct method to determine operating cash flows, how is the sale of long-term investments for cash reported on the Statement of Cash Flows?

Which of the following statements is most likely to be right?

When using the direct method to determine operating cash flows, how is the payment of a cash dividend shown on the Statement of Cash Flows?

During the current year, the accounts payable balance decreased.

During the current year, the operations of a shipping company provided net cash flows of $600,000. The company made capital expenditures of $270,000 and paid dividends of $130,000. A)Compute the company's free cash flow. B)Compute the company's cash flow adequacy ratio assuming the average maturity value of its long-term debt over the next 5 years is $650,000.

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.) -Paid employee insurance expense.

Which of the following is not a current reporting requirement for a statement that reports changes in cash over a period of time?

When using the direct method to determine operating cash flows, how is the issuance of stock for cash shown on the Statement of Cash Flows?

A company reported the following information: How much cash was received for interest during 2020?

Cash flows from selling machinery would be classified as investing activities.

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.) -Resold treasury stock for cash.