Exam 11: The Statement Of Cash Flows

Medstar Ambulance Service Information from the company's financial records is presented below: At the end of 2020, the company issued notes at par value for $1,200,000 cash. The proceeds were used to retire the $1,000,000 note issue outstanding at the end of 2019 (before their maturity date). All interest expense was paid in cash during 2020. -Refer to Medstar Ambulance Service. The following statements describe how the company reported the cash flow effects of the items described above on its 2020 statement of cash flows. The indirect method is used to prepare the operating activities section. Which of the following has been reported incorrectly?

Unlike the income statement, no financial ratios are reported on the statement of cash flows.

Under the indirect method, a gain from the sale of land is subtracted from ___________ in the operating activities section of the statement of cash flows.

Medstar Ambulance Service Information from the company's financial records is presented below: At the end of 2020, the company issued notes at par value for $1,200,000 cash. The proceeds were used to retire the $1,000,000 note issue outstanding at the end of 2019 (before their maturity date). All interest expense was paid in cash during 2020. -Refer to Medstar Ambulance Service. How much was paid to retire the $1,000,000 note issue 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.) -Purchased land for cash.

If the balance of wages payable increases during the year, then the ____________________ for the period will be greater than the actual cash wages paid in the period.

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 to suppliers for purchases of merchandise during 2020?

A company reported the following information: An analysis of records indicated that there were no cash flow effects resulting from the changes in the two accounts presented above. How should the changes in these accounts be reported on a statement of cash flows?

When using the indirect method to determine operating cash flows, how is the decrease in accounts payable shown on the Statement of Cash Flows?

A company reported the following information: How much cash was paid for insurance 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.) -Paid interest on a capital lease.

The primary purpose of the statement of cash flows is to provide information about

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 McCullow Investment Group. Ignoring the differences in magnitude, comment on the similarities and differences in the cash flows of the three companies.

Determining the cash flows from operating activities generally requires analyzing each item on the income statement as well as the current asset (except cash) and current liability accounts.

Selected information from the company's financial records is presented below: During 2020, the company sold equipment with a cost of $50,000 and accumulated depreciation of $30,000. A gain of $10,000 was recognized on the sale of the equipment. This was the only equipment sale during the year. -Refer to Metalcrafts, Inc. What amount would be reported as the cash proceeds from the sale of equipment?

Cash flows from purchases, sales, and maturities of investments are classified as financing activities.

Match these terms with their correct definition. -Include cash sales to customers and cash dividends received.

When using the indirect method to determine operating cash flows, how is depreciation expense recorded on the Statement of Cash Flows?

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. Give some examples of circumstances that would result in net cash used by investing activities as shown above.

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 accumulated depreciation on the property, plant and equipment disposed of during 2020?