Exam 13: Statement of Cash Flows

Applegate Ltd.reported a loss of $10,000 for the year.During the year, accounts receivable decreased by $3,000, inventory increased by $5,000, accounts payable increased by $11,000, and depreciation expense of $6,000 was recorded.Using the indirect method, operating activities

Like the other financial statements, the statement of cash flows is prepared from an adjusted trial balance.

Using the indirect method, which of the following would not be an adjustment to net income?

Net income reported for the current year was $100,000.Depreciation expense was $25,000.Accounts Receivable and Inventories decreased $5,000 and $15,000, respectively.Prepaid Expenses and Accounts Payable increased, respectively, by $500 and $4,000.Using the indirect method, how much cash was provided by operating activities?

If accounts payable have increased during a period,

Kate's Fashions Ltd.produces and sells high fashion merchandise.For the year ended June 30, 2022, the company reported $85,000 cash provided by operating activities, $18,000 by investing activities, and $49,000 by financing activities.Kate's Fashions paid $22,000 in dividends and spent $35,000 for new equipment.Its free cash flow for 2022 was

The statement of cash flows is a required statement for both public and private corporations.

In preparing a statement of cash flows, preferred shares issued in exchange for land would be reported in the

The statement of cash flows

Financing activities involve

Of the items below, the one that appears before the others on the statement of cash flows is

Use the following information for questions Ingles Corp., a private company reporting under ASPE, engaged in the following transactions.For each transaction, indicate where, if at all, it would be classified on the statement of cash flows. -Issue of common shares in exchange for equipment:

Which of the following is not one of the phases of the corporate life cycle?

Under the indirect method, an increase in accounts payable during a period is deducted from net income in calculating cash provided by operating activities.

Generally, the first category shown on the statement of cash flows is cash flows provided (used) by

The activity from the statement of financial position to be presented in the financing activities section of the statement of cash flows is based on an analysis of shareholders' equity only.

A change in the dividends payable account is reported

If accounts receivable have increased during a period,

Galaxy Corporation reported net income of $75,000 for the year.During the year, accounts receivable increased by $6,000, accounts payable decreased by $3,000 and depreciation expense of $5,000 was recorded.Using the indirect method, cash provided by operating activities for the year is

The statement of cash flows will not provide insight into