Exam 17: Statement of Cash Flows

Which of the following changes in retained earnings during a period will be reported in the financing activities section of the statement of cash flows? 1) Declaration of a cash dividend paid during the period. 2) Net income for the period.

Significant noncash transactions would not include

In Rooney Company, Treasury Stock increased $30,000 from a cash purchase, and Retained Earnings increased $80,000 as a result of net income of $124,000 and cash dividends paid of $44,000. Net cash used by financing activities is:

Cash flow from investing activities is considered the most important category on the statement of cash flows because it is considered the best measure of expected income.

Each of the following is added to net income in computing net cash provided by operating activities except

Under the direct method, noncash charges, such as depreciation, are _______________ in the statement of cash flows.

Using the direct method, major classes of investing and financing activities are listed in the operating activities section.

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.

When a worksheet is used, all but one of the following statements is correct. The incorrect statement is

The cost of goods sold during the year was $185,000. Merchandise inventory decreased by $6,000 during the year and accounts payable decreased by $3,000 during the year. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total

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

Dobson Corporation shows income tax expense of $80,000. There has been a $5,000 decrease in federal income taxes payable and a $7,000 increase in state income taxes payable during the year. What was Dobson's cash payment for income taxes?

The following information is available for Yates Corporation: Instructions Compute Yates Corporation's free cash flow.

In developing the cash flows from operating activities, most companies in the U. S.

Cash equivalents are generally investments with maturities of

Schick Company reported cost of goods sold of $172,000 on its 2010 income statement. The company's beginning inventory was $35,000. The ending inventory was valued at $40,000. The Accounts Payable balance at January 1 was $25,000. The December 31 balance in Accounts Payable was $22,000. Instructions Compute cash payments to suppliers.

Indicate where the event common stock issued for cash would appear, if at all, on the indirect statement of cash flows.

In Gentry Company, land decreased $140,000 because of a cash sale for $140,000, the equipment account increased $40,000 as a result of a cash purchase, and Bonds Payable increased $130,000 from issuance for cash at face value. The net cash provided by investing activities is

In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is

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