Exam 12: Statement of Cash Flows

Brad Ford Company reports a $32,000 increase in inventory and a $8,000 increase in accounts payable during the year. Cost of goods sold for the year was $190,000. Using the direct method of reporting cash flows from operating activities, cash payments made to suppliers were

Accounts receivable arising from sales to customers amounted to $120,000 and $105,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $407,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

The current cash debt coverage is used to evaluate

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

Draper Company prepared the tabulation below at December 31, 2014. Instructions Show how each item should be reported in the statement of cash flows. Use parentheses for deductions.

In developing the cash flows from operating activities, most companies in the United States

Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows. Indicate where, if at all, a stock dividend declared and issued would be classified on the statement of cash flows.

Cost of goods sold for the year amounted to $100,000, and during the year, inventory ______________ by $7,000 and accounts payable ______________ by $3,000 resulting in cash paid to suppliers of $90,000.

Cash flows from operating activities, as reported on the statement of cash flows under the indirect method, would include

Assume that the E-Zip Corporation uses the indirect method to depict cash flows. Indicate where, if at all, common stock issued for cash would be classified.

Assume that the Quinn Corporation uses the indirect method to depict cash flows. Indicate where, if at all, interest paid on note would be classified on the statement of cash flows.

The information to prepare the statement of cash flows comes from all of the following sources except

The net income reported on the income statement for the current year was $410,000. Depreciation recorded on plant assets was $76,000. Accounts receivable and inventories increased by $40,000 and $16,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $32,000, respectively. How much cash was provided by operating activities?

The receipt of dividends from long-term investments in stock is classified as a cash inflow from investing activities.

Laser Performance Inc. has the following information available (amount in thousands). Net Income \ 30,000 Average Total Liabilities 80,000 Average Current Liabilities 36,000 Cash Provided by Operations 48,000 Cash Sales 130,000 Capital Expenditures 22,000 Dividends Paid 6,000 What is the current cash debt coverage?

A transaction involving a gain on the sale of equipment affects cash provided (used) by

The acquisition of land by issuing common stock is

The net income reported on the income statement for the current year was $210,000. Depreciation was $52,000. Accounts receivable and inventories decreased by $5,000 and $15,000, respectively. Prepaid expenses and accounts payable increased, respectively, by $500 and $14,000. How much cash was provided by operating activities?

Which of the following would not create a cash flow?

Which of the following is not typically a characteristic experienced by a company during the introductory phase of the corporate life cycle?