Exam 11: The 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. What amount was paid to acquire equipment during 2020?

Merry Maids Company Merry Maids Company began 2019 with a cash and cash equivalents balance of $7,670. Consolidated statements of cash flows for the years ended December 31, 2020 and 2019, are presented below: -Refer to Merry Maids Company. What method is used to calculate the net cash provided by operating activities?

Match these terms with their correct definition. -Provides several pieces of information needed to prepare the cash flow statement.

Issuing stock increases the company's cash flows from investing activities.

Which balance sheet accounts are most affected by financing activities?

Match these terms with their correct definition. -Determines operating cash flow which begins with net income and then adjusts it for noncash items.

Companies can use two different methods to report the amount of cash flow from their investing and financing activities.

Which of the following statements is false?

When using the indirect method to determine operating cash flows, how is the receipt of cash from the sale of long-term investments treated on the statement of cash flows?

An investment in common stock is not considered to be a cash equivalent.

Which of the following financing activities results in a cash inflow?

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 financing activities section of the company's statement of cash flows for 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.) -Issued long term mortgage to acquire land and a building.

You are financial news reporter for the Wall Street Journal. During a recent press conference with the Chief Financial Officer of Lackluster Video, Inc. the executive stated that the company's financial health was excellent and that she expected their recent history of successful and strategic growth to continue to generate significant profits in the future as they expanded their video stores into several new major geographical markets. To corroborate the CFO's statements, you examined the statement of cash flows and found that the company has reported negative operating cash flows, positive investing cash flows, and positive financing cash flows for each of the last 5 years. Does the statement of cash flows support the CFO's statements?

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 investing activities section of the company's statement of cash flows for 2020.

The statement of cash flows helps users understand the reasons for the differences between net income and related cash receipts and payments.

Which method of preparing the operating activities section of a statement of cash flows reports major classes of gross cash receipts and cash payments for revenues and expenses?

The indirect method of reporting cash flows from operating activities involves reconciling net income and cash flows from operations.

Cash flows from issuing and repurchasing stock or issuing and repaying debt are classified as

When using the indirect method to determine operating cash flows, how is an increase in accounts receivable during the year shown on the Statement of Cash Flows?