Exam 17: Statement of Cash Flows

Vision Company purchased treasury stock with a cost of $16000 during 2016. During the year the company paid dividends of $20000 and issued bonds payable for proceeds of $860000. Cash flows from financing activities for 2016 total

At January 1 2016 Benny Enterprises reported a balance in the Equipment account of $45000. During the year the company purchased equipment with a cost of $60000 and sold equipment with a book value of $30000. The company reported a loss on the sale of equipment of $4000. Assume the indirect method is used. Instructions Determine what amount will be reported in (a) the operating activities section and (b) the investing activities section with regard to the purchase and sale of equipment.

Towson Company prepared the tabulation below at December 31 2016. Instructions Show how each item should be reported in the statement of cash flows. Use parentheses for deductions.

Each of the following items may be classified as operating or financing activities under IFRS except

Clare Company had total operating expenses of $185000 in 2016 which included Depreciation Expense of $36000. Also during 2016 prepaid expenses increased by $8000 and accrued expenses decreased by $7600. Instructions Calculate the amount of cash payments for operating expenses in 2014 using the direct method.

A statement of cash flows summarizes the operating ____________ and ___________ activities of an entity.

Which of the following activities is excluded from the statement of cash flows under IFRS?

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 statements concerning the statement of cash flows is true?

Sact Creek Company's most recent financial statements showed dismal performance. There was a net loss of $10000 and the statement of cash flows showed a net cash decrease in all categories. The company president called all the managers together and asked them to do all they could to make sure the next quarter's performance was better. Ted Flay manager of the manufacturing division sold off old manufacturing equipment. He also reclassified several workers to part time (30 hours per week) and hired additional temporary workers to take up the slack. This saved the company money since part-time workers do not have the same insurance and other benefits as full-time workers. Will Smith financial manager immediately suspended payments on all accounts except those on which interest would accrue. He also instituted aggressive collection procedures. Required: 1. Were Ted Flay's actions ethical? Explain. 2. Were Will Smith's actions ethical? Explain. 3. Were the company president's actions ethical? Explain.

A statement of cash flows indicates the sources and uses of cash during a period.

The current sections of Donny Inc.'s balance sheets at December 31 2016 and 2017 are presented here. Donny's net income for 2017 was $203000. Depreciation expense was $25000. 2016 2017 Current assets Cash \ 115,000 \ 99,000 Accounts receivable 105,000 89,000 Inventory 154,000 172,000 Prepaid expense 27.000 21,000 Current liabilities Accrued expenses payable \ 15,000 \ 5,000 Accounts payable Total current liabilities \ 100,000 \ 98,000 Instructions Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31 2017 using the indirect method.

If accounts payable have increased during a period

Which one of the following items is not necessary in preparing a statement of cash flows?

The following data are available for Alamo Corporation. Sale of land \ 225,000 Sale of equipment \ 130,000 Issuance of common stock 140,000 Purchase of equipment 70,000 Payment of cash dividends 120,000 Net cash provided by investing activities is: