Exam 12: The Statement of Cash Flows

Presented below is the operating activities section of the statement of cash flows for Feline Friends Corp. for 2016: Operating activities: Which method of preparing the operating activities section has Feline used?

Use the equation presented below to answer the question that follows: Cash = CL + LTL + CS + RE - NCCA - LTA Where: CL = Current liabilities LTL = Long-term liabilities CS = Common stock RE = Retained earnings NCCA = Noncash current assets LTA = Long-term assets Which of the following activities results in a cash outflow?

Each of the following transactions would be classified as either an investing or a financing activity except

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. -Decrease in accounts payable

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. -Recorded depreciation expenses for the year.

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. -Depreciation expense

If the balance of wages payable increases during the year, then the for the period will be greater than the actual cash wages paid in the period.

If a company uses the direct method of reporting cash flows from operating activities, then a reconciliation of net income and cash flow from operations is also required.

A decrease in retained earnings indicates that a cash dividend has been paid.

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. -Issued preferred stock.

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

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. -Payments on accounts payable

Vencenzia Company reported the following information in its annual report for 2016.

At the end of the first year of operations, the balance sheet of West Palm Beach Industries had the following balances: Accounts Receivable, $5,000; Accounts Payable, $6,000; Inventory, $3,000; and Unexpired Insurance, $2,000. The corporation reported net income of $79,000 for the year, including depreciation expense of $5,000, and uses the indirect method of computing net cash flow from operating activities. Based on this information, net cash flow from operating activities is:

The financial statement that summarizes the operating, investing, and financing activities of a business over a period of time is the ___________________________________.

Assuming the indirect method for preparing the statement of cash flows is used, indicate whether these items should be added to net income A, deducted from net income D, or not be reported in the operating section of the statement under the indirect method NR. -Increase in accounts receivable

During 2016, the accounts payable balance of Andreas Corp. decreased. Which of the following statements is true?

Use the following selected data and additional information from the records of Utah Corp. to answer the questions that follow. 1 Equipment with a cost of $15,000 and a book value of $3,000 was sold for $5,000 during 2016. 2 Common stock was issued to retire bonds payable during 2016. 3 The only items affecting retained earnings in 2016 were net income and dividends declared and paid. -Review the data and assumptions for Iowa Industries Inc. REQUIRED: A What was the cost of the property, plant and equipment which was disposed of during 2016? B What was the amount of accumulated depreciation on the property, plant and equipment disposed of during 2016? C Assuming that the book value of the property, plant and equipment disposed of during 2016 was $76.9, what were the cash proceeds from the disposal of property, plant and equipment for 2016?

Presented below is the operating activities section of the statement of cash flows for Golden Consulting for 2016: Which method of preparing the operating activities section has Golden Consulting used?

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. -Obtained a long-term bank loan.