Tomas Pest Control Products has the following information available: \[\begin{array} { l r } \text { Net Income } & \$ 25,000 \\ \text { Cash Provided by Operations } & 33,000 \\ \text { Cash Sales } & 65,000 \\ \text { Capital Expenditures } & 10,000 \\ \text { Dividends Paid } & 2,000 \end{array}\] What is Tomas' free cash flow?

A) $27000 B) $23000 C) $21000 D) $10000 A) $27000 B) $23000 C) $21000 D) $10000

Exam 17: Statement of Cash Flows

If a gain of $12000 is incurred in selling (for cash) office equipment having a book value of $110000 the total amount reported in the cash flows from investing activities section of the statement of cash flows is

(Multiple Choice)

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Question 61

Accounts receivable arising from sales to customers amounted to $86000 and $77000 at the beginning and end of the year respectively. Income reported on the income statement for the year was $290000. Exclusive of the effect of other adjustments the cash flows from operating activities to be reported on the statement of cash flows is

(Multiple Choice)

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Question 62

Cash provided by operating activities fails to take into account that a company must invest in new fixed assets just to maintain its current level of operations.

(True/False)

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Question 63

During the year Income Tax Expense amounted to $30000 and Income Taxes Payable increased by $4000; therefore the cash paid for income taxes was $26000.

(True/False)

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Question 64

Madisun Company issued common stock for proceeds of $20000 during 2016. The company paid dividends of $5000. The company also issued a long-term note payable for $35000 in exchange for equipment during the year. The company sold treasury stock that had a cost of $3000 for $9000. Instructions Compute net cash flows from financing activities.

(Essay)

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Question 65

Financing activities involve

(Multiple Choice)

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Question 66

The statement of cash flows classifies cash receipts and payments as operating nonoperating financial and extraordinary activities.

(True/False)

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Question 67

When equipment is sold for cash the amount received is reflected as a cash

(Multiple Choice)

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Question 68

In computing cash payments for operating expenses a decrease in prepaid expenses is and an increase in accrued expenses payable is to (from) operating expenses exclusive of depreciation.

(Short Answer)

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Question 69

Any item that appears on the income statement would be considered as either a cash inflow or cash outflow from operating activities.

(True/False)

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Question 70

Selected transactions of Alton Company are listed below. 1. Common stock is sold for cash above par value. 2. Bonds payable are issued for cash at a discount. 3. Interest receivable on a short-term note receivable is collected. 4. Land is sold for cash at book value. 5. Accounts payable are paid in cash. 6. Equipment is purchased by signing a 3-year 10% note payable. 7. Cash dividends on common stock are declared and paid. 8. 100 shares of XYZ common stock are purchased for cash. 9. Merchandise is sold to customers for cash. 10. Bonds payable are converted into common stock. Instructions Classify each transaction as either (a) an operating activity (b) an investing activity (c) a financing activity or (d) a noncash investing and financing activity.

(Essay)

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Question 71

Wilson Company reported net income of $105000 for the year ended December 31 2016. During the year inventories decreased by $15000 accounts payable decreased by $20000 depreciation expense was $18000 and a gain on disposal of equipment of $9000 was recorded. Net cash provided by operating activities in 2016 using the indirect method was

(Multiple Choice)

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Question 72

Accounts receivable arising from sales to customers amounted to $40000 and $55000 at the beginning and end of the year respectively. Income reported on the income statement for the year was $180000. Exclusive of the effect of other adjustments the cash flows from operating activities to be reported on the statement of cash flows is

(Multiple Choice)

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Question 73

For external reporting a company must prepare either an income statement or a statement of cash flows but not both.

(True/False)

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Question 74

In Alona Company net income is $285000. If accounts receivable increased $140000 and accounts payable decreased $40000 net cash provided by operating activities using the indirect method is:

(Multiple Choice)

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Question 75

In preparing a statement of cash flows the issuance of debt should be reported separately from the retirement of debt.

(True/False)

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Question 76

For each of the following items indicate by using the appropriate code letter how the item should be reported in the statement of cash flows using the direct method.

(Essay)

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Question 77

Which of the following would not be needed to determine net cash provided by operating activities?

(Multiple Choice)

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Question 78

The information in a statement of cash flows will not help investors to assess the entity's ability to

(Multiple Choice)

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Question 79

Tomas Pest Control Products has the following information available: Net Income \ 25,000 Cash Provided by Operations 33,000 Cash Sales 65,000 Capital Expenditures 10,000 Dividends Paid 2,000 What is Tomas' free cash flow?

(Multiple Choice)

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Question 80

Showing 61 - 80 of 215

Exam 17: Statement of Cash Flows

If a gain of $12000 is incurred in selling (for cash) office equipment having a book value of $110000 the total amount reported in the cash flows from investing activities section of the statement of cash flows is

Cash provided by operating activities fails to take into account that a company must invest in new fixed assets just to maintain its current level of operations.

During the year Income Tax Expense amounted to $30000 and Income Taxes Payable increased by $4000; therefore the cash paid for income taxes was $26000.

Financing activities involve

The statement of cash flows classifies cash receipts and payments as operating nonoperating financial and extraordinary activities.

When equipment is sold for cash the amount received is reflected as a cash

In computing cash payments for operating expenses a decrease in prepaid expenses is ______________ and an increase in accrued expenses payable is ______________ to (from) operating expenses exclusive of depreciation.

Any item that appears on the income statement would be considered as either a cash inflow or cash outflow from operating activities.

For external reporting a company must prepare either an income statement or a statement of cash flows but not both.

In Alona Company net income is $285000. If accounts receivable increased $140000 and accounts payable decreased $40000 net cash provided by operating activities using the indirect method is:

In preparing a statement of cash flows the issuance of debt should be reported separately from the retirement of debt.

For each of the following items indicate by using the appropriate code letter how the item should be reported in the statement of cash flows using the direct method.

Which of the following would not be needed to determine net cash provided by operating activities?

The information in a statement of cash flows will not help investors to assess the entity's ability to

Tomas Pest Control Products has the following information available: Net Income \ 25,000 Cash Provided by Operations 33,000 Cash Sales 65,000 Capital Expenditures 10,000 Dividends Paid 2,000 What is Tomas' free cash flow?

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Time Value of Money

Filters

In computing cash payments for operating expenses a decrease in prepaid expenses is and an increase in accrued expenses payable is to (from) operating expenses exclusive of depreciation.