Exam 17: Statement of Cash Flows

Wilton Company reported net income of $50,000 for the year. During the year, accounts receivable decreased by $7,000, accounts payable increased by $3,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is

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 indirect method. A. Added to net income B. Deducted from net income C. Cash outflow-investing activity D. Cash inflow-investing activity E. Cash outflow-financing activity F. Cash inflow-financing activity G. Significant noncash investing and financing activity ____ 1. Decrease in accounts payable during a period ____ 2. Declaration and payment of a cash dividend. ____ 3. Loss on sale of land. ____ 4. Decrease in accounts receivable during a period. ____ 5. Redemption of bonds for cash. ____ 6. Proceeds from sale of equipment at book value. ____ 7. Issuance of common stock for cash. ____ 8. Purchase of a building for cash. ____ 9. Acquisition of land in exchange for common stock. ____ 10. Increase in merchandise inventory during a period.

In the Green Company, the beginning and ending balances in Land were $198,000 and $240,000 respectively. During the year, land costing $45,000 was sold for $45,000 cash, and land costing $87,000 was purchased for cash. The entries in the reconciling columns of the worksheet will include a: