Exam 12: Statement of Cash Flows

Accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $212,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

Which of the following would not be needed to determine net cash provided by operating activities?

The cost of goods sold during the year was $330,000. Inventory increased by $12,000 during the year and accounts payable decreased by $19,000 during the year. Using the direct method of reporting cash flows from operating activities, cash payments for inventory total

Peninsula Company reported net income of $260,000 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

Using the indirect method, an increase in accounts receivable during a period is deducted from net income in calculating cash provided by operations.

During the year, Salaries Payable decreased by $12,000. Using the direct method of reporting cash flows from operating activities, if Salary Expense amounted to $400,000 for the year, the cash paid to employees (including deductions from gross pay) is

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

Which of the following statements concerning the statement of cash flows is true?

The order of presentation of activities on the statement of cash flows is

When preparing a statement of cash flows using the indirect method, why is depreciation added back to net income within the operating activities section when using the indirect method?

The statement of cash flows

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

The following information is available for Mergenthaler Corporation for the year ended December 31, 2014: Collection of principal on long-term loan to a supplier \ 16,000 Acquisition of equipment for cash 10,000 Proceeds from the sale of long-term investment at book value 22,000 Issuance of common stock for cash 20,000 Depreciation expense 25,000 Redemption of bonds payable at carrying (book) value 34,000 Payment of cash dividends 6,000 Net income 30,000 Purchase of land by issuing bonds payable 40,000 In addition, the following information is available from the comparative balance sheet for Mergenthaler at the end of 2014 and 2013: Instructions Prepare Mergenthaler's statement of cash flows for the year ended December 31, 2014, using the indirect method.

During 2014, Ecuyer Industries reported cash provided by operations of $397,000,000, cash used in investing of $343,000,000, and cash used in financing of $95,000,000. In addition, cash spent for fixed assets during the period was $138,000,000. Average current liabilities were $325,000,000 and average total liabilities were $858,000,000. No dividends were paid. Based on this information, what was Ecuyer's free cash flow?

Which of the following adjustments to convert net income to net cash provided by operating activities is not added to net income?

Which of the following would not appear in the operating activities section of a statement of cash flows prepared under the direct method?

Noncash investing and financing transactions, such as the exchange of common stock to purchase assets, represent significant investing and financing activities and are reflected either in a schedule separate from the statement of cash flows or in a separate note to the financial statements.

The statement of cash flows explains the difference between net income, as shown on the income statement, and the net cash flows generated from operations.

The statement of cash flows will not provide insight into

The sale of land for cash would be classified as a cash inflow from an investing activity.