Exam 13: Statement of Cash Flows

To determine cash payments for income taxes for the statement of cash flows using the direct method, an increase in income taxes payable is added to the income tax expense.

For each of the following activities that may take place during the accounting period, indicate the effect (a-g) on the statement of cash flows prepared using the indirect method. Choices may be selected as the answer for more than one question.a.Increase cash from operating activities b.Decrease cash from operating activities c.Increase cash from investing activities d.Decrease cash from investing activities e.Increase cash from financing activities f.Decrease cash from financing activities g.Noncash investing and financing activity -Payment of dividends

The statement of cash flows is not useful for

Identify the section of the statement of cash flows (a-d) where each of the following items would be reported.a.Operating activities b.Financing activities c.Investing activities d.Schedule of noncash financing and investing -Payment of dividends to stockholders

Identify the section of the statement of cash flows (a-d) where each of the following items would be reported.a.Operating activities b.Financing activities c.Investing activities d.Schedule of noncash financing and investing -Decrease in inventory

The statement of cash flows is not one of the basic financial statements.

Indicate the section (operating activities, investing activities, financing activities, or none) in which each of the following would be reported on the statement of cash flows prepared by the indirect method: (a)Gain on sale of fixed assets (b)Net income (c)Retirement of long-term debt (d)Sale of common stock (e)Distribution of stock dividends (f)Payment of cash dividends (g)Purchase of fixed assets (h)Sale of fixed assets (i)Receipt of interest revenue (j)Payment of interest expense

If land costing $145,000 was sold for $205,000, the $60,000 gain on the sale would be added to net income in the operating activities section of the statement of cash flows (prepared by the indirect method).

The following selected account balances appeared on the financial statements of the Washington Company. Use these balances to answer the questions that follow. The Washington Company uses the direct method to calculate net cash flow from operating activities. Assume that all accounts payable are owed to merchandise suppliers.​ -The cost of goods sold during the year was $45,000. Inventories were $13,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable (all owed to merchandise suppliers) were $7,000 and $5,000 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total

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

On the basis of the following data for Larson Co. for the year ending December 31 Year 2, and the preceding year ended December 31 Year 1, prepare a statement of cash flows. Use the indirect method of reporting cash flows from operating activities. In addition to the balance sheet data, assume that: Equipment costing $125,000 was purchased for cash.Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000.The stock was issued for cash.​ The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.​

Cash flows from operating activities, as part of the statement of cash flows, include cash flow from transactions that enter into the determination of net income.

The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following: (a)If sales for the current year were $695,000 and accounts receivable decreased by $43,500 during the year, what was the amount of cash received from customers? (b)If income tax expense for the current year was $56,000 and income tax payable decreased by $5,200 during the year, what was the amount of cash payments of income tax?

For each of the following activities that may take place during the accounting period, indicate the effect (a-g) on the statement of cash flows prepared using the indirect method. Choices may be selected as the answer for more than one question.a.Increase cash from operating activities b.Decrease cash from operating activities c.Increase cash from investing activities d.Decrease cash from investing activities e.Increase cash from financing activities f.Decrease cash from financing activities g.Noncash investing and financing activity -Sale of land

The following selected account balances appeared on the financial statements of the Washington Company. Use these balances to answer the questions that follow. The Washington Company uses the direct method to calculate net cash flow from operating activities. Assume that all accounts payable are owed to merchandise suppliers.​ -Cash collections from customers were

The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following: (a)If sales for the current year were $375,000 and accounts receivable increased by $29,000 during the year, what was the amount of cash received from customers? (b)If income tax expense for the current year was $39,000 and income tax payable decreased by $21,000 during the year, what was the amount of cash payments for income tax?

Lamar Corporation purchased land for $150,000. Later in the year, the company sold land with a book value of $190,000 for $200,000. Show how the effects of these transactions are reported on the statement of cash flows using the indirect method.

The last item on the statement of cash flows prior to the schedule of noncash investing and financing activities reports

Baxter Company reported a net loss of $13,000 for the year ended December 31. During the year, accounts receivable decreased by $5,000, inventory increased by $8,000, accounts payable increased by $10,000, and depreciation expense of $4,000 was recorded. During the year, operating activities

Land costing $140,000 was sold for $173,000 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?