Exam 17: Statement of Cash Flows

During 2017 Zuma Company had $150000 in cash sales and $1240000 in credit sales. The accounts receivable balances were $180000 and $215000 at December 31 2016 and 2017 respectively. Using the direct method of reporting cash flows from operating activities what was the total cash collected from all customers during 2017?

Noncash investing and financing activities must be reported in the body of a statement of cash flows.

Significant noncash transactions would not include

Cash receipts from interest and dividends are classified as

In computing cash payments for income taxes a decrease in income taxes payable is ______________ to (from) income tax expense.

Free _______________ equals cash provided by operations less capital expenditures and cash dividends.

Using the indirect method patent amortization expense for the period

The following information is available for Young Corporation: Capital expenditures \ 115,000 Cash dividends 75,000 Cash provided by operations 220,000 Net income 130,000 Sales 600,000 Instructions Compute Young Corporation's free cash flow.

In calculating net cash provided by operating activities using the indirect method an increase in prepaid expenses during a period is

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

Cost of goods sold for the year amounted to $130000 and during the year accounts payable ______________ by $9000 and inventory ______________ by $5000 resulting in cash paid to suppliers of $116000.

In the Papyrus Corporation cash receipts from customers were $136000 cash payments for operating expenses were $102000 and one-third of the company's $9300 income taxes were paid during the year. Net cash provided by operating activities is:

The statement of cash flows reports each of the following except

The following information is available for Sally Corporation for the year ended December 31 2017: Collection of principal on long-term loan to a supplier \ 15,000 Acquisition of equipment for cash 10,000 Proceeds from the sale of long-term investment at book value 20,000 Issuance of common stock for cash 27,000 Depreciation expense 28,000 Redemption of bonds payable at carrying (book) value 35,000 Payment of cash dividends 15,000 Net income 25,000 Purchase of land by issuing bonds pavable 45,000 In addition the following information is available from the comparative balance sheet for Sally at the end of 2016 and 2017: 2017 2016 Cash \ 66,000 \ 14,000 Accounts receivable (net) 20,000 16,000 Prepaid insurance 18,000 13,000 Total current assets \ 104,000 \ 43,000 Accounts payable \ 30,000 \ 20,000 Salaries payable 3,000 7,000 Total current liabilities \ 33,000 \ 27,000 Instructions Prepare Sally's statement of cash flows for the year ended December 31 2017 using the indirect method.

Cash flows from operating activities can be calculated using the indirect or direct method. Briefly describe how the two methods differ yet arrive at the same information about the net cash flows from operating activities.

Which of the following items does not appear in the statement of cash flows under the direct method?

Indicate where the purchase of land and a building with a mortgage would appear if at all on the indirect statement of cash flows.

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

Ale Company reports a $16000 increase in inventory and a $8000 increase in accounts payable during the year. Cost of Goods Sold for the year was $150000. The cash payments made to suppliers were

The operating activities section of the statement of cash flows may be prepared using the ______________ method or the ______________ method.