Exam 17: Statement of Cash Flows

A measure that describes the cash remaining from operations after adjustment for capital expenditures and dividends is

The statement of cash flows will not report the

All of the following statements about free cash flow are false except:

Bush Company reported net income of $60000 for the year. During the year accounts receivable decreased by $8000 accounts payable increased by $4000 and depreciation expense of $5000 was recorded. Net cash provided by operating activities for the year is

Under the indirect method retained earnings is adjusted for items that affected reported net income but did not affect cash.

In Ramon Company Treasury Stock increased $20000 from a cash purchase and Retained Earnings increased $80000 as a result of net income of $120000 and cash dividends paid of $40000. Net cash used by financing activities is:

Assuming a statement of cash flows is prepared indicate the reporting of the transactions and events listed below by major categories on the statement. Use the following code letters to indicate the appropriate category under which the item would appear on the statement of cash flows.

Of the items below the one that appears first on the statement of cash flows is

The primary purpose of the statement of cash flows is to

The financial statements of Lowz Company appear below: The following additional data were provided: 1. Dividends declared and paid were $35000. 2. During the year equipment was sold for $17000 cash. This equipment cost $28000 originally and had a book value of $17000 at the time of sale. 3. All depreciation expense is in the operating expenses. 4. All sales and purchases are on account. 5. Accounts payable pertain to merchandise suppliers. 6. All operating expenses except for depreciation were paid in cash. Instructions Prepare a statement of cash flows for Lowz Company using the direct method.

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

Squeeze Company reports the following: End of Year Beginning of Year Inventory \ 25,000 \ 42,000 Accounts Payable 22,000 12,000 If cost of goods sold for the year is $220000 the amount of cash paid to suppliers is

Under IFRS bank overdrafts are classified as

Show Company had total operating expenses of $153000 in 2016 which included Depreciation Expense of $30000. Also during 2016 prepaid expenses decreased by $9500 and accrued expenses increased by $8500. Instructions Calculate the amount of cash payments for operating expenses in 2016 using the direct method.

A comparative balance sheet for Rocker Company appears below: Additional information: 1. Net income for the year ending December 31 2017 was $35000. 2. Cash dividends of $15000 were declared and paid during the year. 3. Long-term investments that had a cost of $17000 were sold for $14000. 4. Sales for 2017 were $120000. Instructions Prepare a statement of cash flows for the year ended December 31 2017 using the indirect method.

Gonzo Company reports a $25000 increase in inventory and a $12000 decrease in accounts payable during the year. Cost of Goods Sold for the year was $185000. Using the direct method of reporting cash flows from operating activities cash payments made to suppliers were

Dense Company's income statement showed revenues of $275000 and operating expenses of $135000. Accounts receivable decreased by $40000 and accounts payable increased by $35000 during the year. Instructions Compute (a) cash receipts from customers and (b) cash payments for operating expenses using the direct method.

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

The payment of interest on bonds payable is classified as a cash outflow from operating activities.

Using the indirect approach noncash charges in the income statement are ______________ to net income and noncash credits are ______________ to compute cash provided by operations.