Exam 12: The Statement of Cash Flows

In 2015, Valencia Company purchased equipment for $363,000 and also sold some special purpose machinery with a book value of $155,000 for $182,000.In its statement of cash flows for 2015, Valencia should report the following with respect to the above transactions:

Tulsa Corp.reported the following information for 2015 and 2016. How much cash was paid for interest during 2016?

Nordic Exports Inc.reported net income of $150,000 for 2015, but its cash balance decreased $40,000.Which financial statement should Nordic Exports' management refer to for an explanation of this situation?

Use the information below for Shorter Inc.for 2015 and 2016 to answer the following question. During 2016, Shorter Inc.sold equipment with a cost of $30,000 and accumulated depreciation of $25,000.A gain of $3,000 was recognized on the sale of the equipment This was the only equipment sale during the year. Assume that all purchases of equipment were paid with cash.How much cash was paid by Shorter for the purchase of equipment during 2016?

Which method of preparing the operating activities section of a statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses?

When using the direct method, how is the issuance of stock for cash shown on the statement of cash flows?

Dallas Corp.reported the following information for 2015 and 2016. How much cash was received for interest during 2016?

If the December 31, 2016, balance of accounts receivable is higher than the January 1, 2016, balance, then the amount of cash collections will be less than the sales on account for the year.

___________________________ is a noncash expense related to plant assets.

Cash equivalents are reported in the Operating Activities section of the statement of cash flows.

The following items were reported on the balance sheets and income statement for Carlton Co.: What amount would be reported in the operating activities section of the statement of cash flows for collections from customers under the direct method assuming that all sales are on credit?

The work sheet used to prepare a statement of cash flows indirect method to determine cash flows from operating activities) should have a total in the Changes column equal to total assets.

Rent expense in Volusia Company's 2016 income statement is $420,000.If Prepaid Rent was $70,000 at December 31, 2015, and is $95,000 at December 31, 2016, the cash paid for rent during 2016 is:

Which method of preparing the operating activities section of a statement of cash flows reports major classes of gross cash receipts and cash payments for revenues and expenses?

The statement of cash flows emphasizes explanations for the change in net income.

Blecher Co.reported the following information at the end of 2015 and 2016: An analysis of Blecher's records indicated that there were no cash flow effects resulting from the changes in the two accounts presented above.How should Blecher report the changes in these accounts on a statement of cash flows?

Significant noncash transactions are not reported on the statement of cash flows, but either in a separate schedule or in a note to the financial statements.

Which of the following statements regarding the statement of cash flows is true?

The statement of cash flows

The primary purpose of the statement of cash flows is to provide information about