Exam 13: Statement of Cash Flows

Indicate where the issuance of common stock issued for cash would appear, if at all, on the indirect statement of cash flows.

Which of the following would not be an adjustment to net income using the indirect method?

In Lynne Company, there was an increase in the land account during the year of $43,000. Analysis reveals that the change resulted from a cash sale of land at cost $115,000, and a cash purchase of land for $158,000. In the statement of cash flows, the change in the land account should be reported in the investment section:

Using the indirect method, an increase in accounts payable during a period is deducted from net income in calculating cash provided by operations.

Which of the following would be added to net income using the indirect method?

The category that is generally considered to be the best measure of a company's ability to continue as a going concern is

Under IFRS, some companies present which section of the cash flow statement as a single line item?

The information to prepare the statement of cash flows usually comes from each of the following except

Accounts receivable arising from sales to customers amounted to $40,000 and $55,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $180,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

Wilson Company reported net income of $105,000 for the year ended December 31, 2014. During the year, inventories decreased by $15,000, accounts payable decreased by $20,000, depreciation expense was $18,000 and a gain on disposal of equipment of $9,000 was recorded. Net cash provided by operating activities in 2014 using the indirect method was

The cost of goods sold during the year was $183,000. Merchandise inventory decreased by $8,000 during the year and accounts payable decreased by $4,000 during the year. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total

In preparing a statement of cash flows, a conversion of bonds into common stock will be reported in

The change in cash is equal to the change in liabilities less the change in equity plus the change in noncash assets.

Which of the following adjustments to convert net income to net cash provided by operating activities is not added to net income?

Which of the following would be subtracted from net income using the indirect method?

The use of a worksheet to prepare a statement of cash flows is optional.

The cash effects of transactions that create revenues and expenses are

Christine Company had an increase in inventory of $55,000. The cost of goods sold was $95,000. There was a $6,000 decrease in accounts payable from the prior period. What were Christine's cash payments to suppliers?

During a period, cost of goods sold + an increase in inventory + an increase in accounts payable = cash paid to suppliers.

Lager Company has other operating expenses of $260,000. There has been an increase in prepaid expenses of $20,000 during the year, and accrued liabilities are $15,000 lower than in the prior period. Using the direct method of reporting cash flows from operating activities, what were Lager's cash payments for operating expenses?