Exam 12: Statement of Cash Flows

Cash flow from investing activities is considered the most important category on the statement of cash flows because it is considered the best measure of expected income.

Using the indirect method, if equipment is sold at a gain, the

Tito Company reports a $20,000 increase in inventory and a $5,000 decrease in accounts payable during the year. Cost of Goods Sold for the year was $182,000. Using the direct method of reporting cash flows from operating activities, cash payments made to suppliers were

Vangaurd Company purchased treasury stock with a cost of $55,000 during 2014. During the year, the company paid dividends of $20,000 and issued bonds payable for proceeds of $836,000. Cash flows from financing activities for 2014 total

The payment of a cash dividend would be classified as a(n)

The cash debt coverage is computed by dividing net cash provided by operating activities by

The indirect and direct methods of preparing the statement of cash flows are identical except for the

Typically a value below what amount for the current cash debt coverage ratio should be further investigated?

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 cash debt coverage?

Catalina Company reported a net loss of $10,000 for the year ended December 31, 2014. During the year, accounts receivable decreased $5,000, inventory increased $8,000, accounts payable increased by $10,000, and depreciation expense of $6,000 was recorded. During 2014, operating activities

* 173. During 2014, Bronze Company had $130,000 in cash sales and $970,000 in credit sales. The accounts receivable balances were $180,000 and $212,000 at December 31, 2013 and 2014, respectively. Using the direct method of reporting cash flows from operating activities, what was the total cash collected from all customers during 2014?

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

Cash from investing becomes positive and cash from financing becomes more negative during the

Significant noncash transactions would not include

To determine the net cash provided (used) by operating activities, it is necessary to analyze

Using the following information, which company appears to be most liquid? (in \ Millions) Jones Company Parksh Company Brady Company Chambers Company Cash provided by operating activities for 2014 140 295 110 200 Current liabilities for 2013 230 335 205 300 Current liabilities for 2014 280 375 240 360 Total liabilities for 2013 600 440 275 500 Total liabilities for 2014 720 530 325 540

On the statement of cash flows, the cash flows from operating activities section would include

Each of the following is an adjustment to convert net income to net cash provided by operating activities except

Selected transactions for the Hamiltion Company are listed below. 1. Collected accounts receivable. 2. Declared and paid dividends on common stock. 3. Sold long-term investments for cash. 4. Issued stock for equipment. 5. Repaid five year note payable. 6. Paid employee wages. 7. Converted bonds payable to common stock. 8. Acquired long-term investment with cash. 9. Sold buildings and equipment for cash. 10. Sold merchandise to customers. Instructions Classify each transaction as either (a) an operating activity, (b) an investing activity, (c) a financing activity, or (d) a noncash investing and financing activity.

In preparing a statement of cash flows, the issuance of debt should be reported separately from the retirement of debt.