Exam 21: The Statement of Cash Flows

The information below was taken from the records of the Piper Company for the year ended December 31, 2016: Required: Prepare Piper's statement of cash flows for 2016, using the indirect method.

An abbreviated set of financial statements for Caraba's Company for 2017 and 2016 is shown below: Required: Prepare the cash flows from investing and financing activities sections of the 2017 statement of cash flows.

A company had an increase in interest payable during the year and also amortized discount on bonds payable. Under the direct method, the amount of interest paid during the year to be reflected in the statement of cash flows is

Mavis Company's statement of cash flows showed net cash provided by operating activities of $47,000 in 2016. Mavis reported an increase in accounts payable of $6,000, an increase in inventory of $2,000, depreciation expense of $3,000, and dividends paid of $8,000. Mavis's net income for 2016 was

The Red Blast Company uses the visual inspection method for completing the statement of cash flows. The following information relates to the Red Blast Company: What is the net cash provided by operating activities?

Which of the following should be presented in a statement of cash flows?

In order to prepare the statement of cash flows under the direct method, a company will need the adjusted trial balance from the previous period.

What are the four steps necessary to complete the statement of cash flows using the visual inspection method?

Unlike GAAP, IFRS encourage the disclosure of all of the following except

What is the primary purpose of a company's statement of cash flows?

How should the sale of a depreciable asset be presented on the statement of cash flows?

The following information relates to the Fowler Company for 2016: What was the amount of cash sales?

Marty uses the visual inspection method for preparing the statement of cash flows. Selected information for Marty Company during 2016 follows: If Marty reported net income of $320, what was the net cash provided by operating activities for 2016?

The following information relates to the Davensmith Company: What was the amount of interest paid?

Exhibit 21-1 The Raymond Corporation reported $11,000 of net income for the current year and also uses the visual inspection method for completing the statement of cash flows. The following additional information relates to Raymond for the year: Subsidiary gain included in investment income under the -Refer to Exhibit 21-1. What is Raymond's net cash provided by operating activities?

According to GAAP, what must a company's statement of cash flows show?

Under the direct method of reporting operating cash flows, a company computes the cash outflows for operating activities by adjusting the various expense accounts for changes in certain liability accounts and deferred revenues, and also eliminates certain "noncash" expenses or losses.

Which of the following events would not result in a cash inflow?

The following information relates to the Maxwell Company for 2016: Required: Compute net cash provided by operating activities for the Maxwell Company for 2016.

Exhibit 21-2 In preparation for completing the statement of cash flows using the spreadsheet method, Williams Company provided the following information relating to patents for 2016: -Refer to Exhibit 21-2. The Cash Flows from Investing Activities section would include a net change related to patents of