Exam 12: The Statement of Cash Flows

Dallas Corp. reported the following information for 2015 and 2016. Interest receivable, December 31, 2015 $1,100 Interest receivable, December 31, 2016 1,400 Interest income--2016 3,200 How much cash was received for interest during 2016?

When using the indirect method, how is the purchase of equipment for cash shown on the statement of cash flows?

Cuero Co. reported a net loss of $30,000 for 2015, yet its cash balance increased during the year. Which financial statement should Cuero's management refer to for an explanation of this situation?

Parks Company reported an increase of $370,000 in its accounts receivable during the year 2015. The company's statement of cash flows for 2015 reported $1 million of cash received from customers. What amount of net sales must Parks have recorded in 2015?

For each of the following items, indicate whether it would appear on a statement of cash flows prepared using the Direct method a or the Indirect method b. -Gain on early retirement of bonds

Which of the following transactions is a significant noncash investing and financing activity?

The following items were reported on the balance sheets and income statement for the Flying Mullet Company: How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows under the indirect method?

Suma Corp. reported the following information for 2015 and 2016. Salaries payable, December 31, 2015 $3,700 Salaries payable, December 31, 2016 1,800 Salaries expense--2016 57,000 How much cash was paid for salaries during 2016?

Use the following codes to indicate how the cash flow effect, if any, of each transaction would be reported on a statement of cash flows if the operating activities section is prepared using the direct method. -Repaid a long-term bank loan.

The following items were reported on the balance sheets and income statement for Carlton Co.: What amount would be reported in the operating activities section of the statement of cash flows for collections from customers under the direct method assuming that all sales are on credit?

Determining the cash flows from operating activities generally requires analyzing each item on the income statement as well as the current asset except cash and current liability accounts.

Use the information below for Flora Inc. for 2015 and 2016 to answer the following question. During 2016, Flora Inc. sold equipment with a cost of $30,000 and accumulated depreciation of $25,000. A gain of $3,000 was recognized on the sale of the equipment This was the only equipment sale during the year. What was depreciation expense for 2016?

When using the indirect method, how would the declaration and payment of cash dividends be shown on the statement of cash flows?

Use the following codes to indicate how the cash flow effect, if any, of each transaction or event would be reported on a statement of cash flows if the operating activities section is prepared using the indirect method. -Purchased store equipment for cash.

The basic accounting equation can be restated in terms of cash by the following equation: Cash = current liabilities + long-term liabilities + capital stock - retained earnings - noncash current assets + long-term assets.

Flannery Company uses a worksheet to prepare its statement of cash flows. The company also uses the indirect method for the Operating Activities section of its statement. For each of the following changes in the balance sheet, indicate what activity it affects and whether it is an addition or deduction. -Land increased

Columbus Company prepays the rent on various office facilities. The beginning balance in Prepaid Rent was $9,500, and the ending balance was $7,200. The income statement reports Rent Expense of $45,800. REQUIRED: Under the direct method, what amount would appear for cash paid in rent in the Operating Activities section of the statement of cash flows? Show your work.

Under the indirect method, a loss from the retirement of bonds is to net income in the operating activities section of the statement of cash flows.

Under certain conditions, an investment in common stock can be considered a cash equivalent.

Fairleigh Industries invested its excess cash in the following instruments during December 2015: Determine the amount of cash equivalents that should be combined with cash on the company's balance sheet at December 31, 2015, and for purposes of preparing a statement of cash flows for the year ended December 31, 2015.