Exam 12: Statement of Cash Flows

Justice Corporation's net income for the current year was $510,000.Depreciation recorded on plant assets was $76,000.Accounts receivable and inventories increased by $40,000 and $16,000, respectively.Supplies and accounts payable decreased by $2,000 and $32,000, respectively.A $500,000 convertible bond was retired through the issuance of common stock.How much cash was provided by operating activities?

All of the following adjustments are added to net income in computing net cash provided by operating activities except

The statement of cash flows

If $1,200,000 of bonds are issued during the year but $2,500,000 of old bonds are retired during the year, the statement of cash flows will show a(n)

Peninsula Company reported net income of $290,000 for the year.During the year, accounts receivable increased by $21,000, accounts payable decreased by $9,000 and depreciation expense of $45,000 was recorded.Net cash provided by operating activities for the year is

During the maturity phase, cash from operations and net income are approximately the same.

Collections on accounts receivable will lag behind sales, and accrual sales during a period will exceed cash collections during the

During 2022, Ecuyer Industries reported cash provided by operations of $794,000, cash used in investing of $686,000, and cash used in financing of $190,000.In addition, cash spent on fixed assets during the period was $276,000.Average current liabilities were $650,000 and average total liabilities were $1,716,000.No dividends were paid.Based on this information, what was Ecuyer's free cash flow?

Cash receipts from interest and dividends are classified as

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

Land costing $125,000 was sold for $355,000 cash.The gain on the sale was reported on the income statement as other income.On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

In addition to the three basic financial statements, which of the following is also a required financial statement?

If a worksheet is used to facilitate the preparation of the statement of cash flows, noncash transactions should

If accounts payable have increased during a period,

The category that is generally considered to be the best measure of a company's ability to continue as a going concern is

When the T-account approach is used, the change in cash is assumed to be equal to

The acquisition of land by issuing common stock is

Which of the following would be subtracted from net income using the indirect method?

Kowalczyk Inc.'s accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of 2022, respectively.Income reported on the income statement for 2022 was $252,000.Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

In preparing a statement of cash flows, an increase in the Common Stock and Treasury Stock accounts during a period would be an investing activity.