Exam 15: Statement of Cash Flows

Last year Burch Corporation's cash account decreased by $6,000. Net cash provided by (used in) investing activities was $13,000. Net cash provided by (used in) financing activities was $(30,000). On the statement of cash flows, the net cash provided by (used in) operating activities was:

Megan Corporation's net income last year was $98,000. Changes in the company's balance sheet accounts for the year appear below: The company paid a cash dividend of $36,000 and it did not dispose of any long-term investments or property, plant, and equipment. The company did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) investing activities last year was:

During the year the balance in the Accounts Receivable account increased by $6,000. In order to adjust the company's net income to a cash basis using the direct method on the statement of cash flows, it would be necessary to:

Freeport Corporation's income statement for last year appears below: The beginning and ending balances for last year are available for the following selected accounts (the company did not dispose of any property, plant, and equipment during the year): Required:Using the direct method, prepare in good form the operating activities section of the statement of cash flows.

In the statement of cash flows, collecting cash from customers is treated as a cash inflow in the financing activities section.

Maloney Corporation's balance sheet and income statement appear below: Cash dividends were $42. The company did not dispose of any property, plant, and equipment during the year.Required:Prepare the operating activities section of the statement of cash flows using the direct method.

Investing activities on the statement of cash flows generate cash inflows and outflows related to borrowing from and repaying principal to creditors and completing transactions with the company's owners such as selling or repurchasing shares of common stocks and paying dividends.

Van Beeber Corporation's comparative balance sheet and income statement for last year appear below: The company declared and paid $49,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.On the statement of cash flows, the income tax expense adjusted to a cash basis would be:

Under the direct method of determining the net cash provided by (used in) operating activities on the statement of cash flows, an increase in accounts receivable would be added to sales revenue to convert revenue to a cash basis.

The Warrel Corporation reported the following data for last year: Based solely on this information, the net cash provided by (used in) financing activities on the statement of cash flows would be:

Buckley Corporation's most recent comparative balance sheet appears below: The company's net income for the year was $91 and it paid a cash dividend of $22. It did not dispose of any property, plant, and equipment during the year. The company did not retire any bonds payable or repurchase any of its own common stock.The net cash provided by (used in) investing activities for the year was:

Klicker Corporation's most recent balance sheet appears below: The company's net income for the year was $152 and it did not issue any bonds or repurchase any of its common stock during the year. Cash dividends were $40. The net cash provided by (used in) financing activities for the year was:

Harkey Corporation's balance sheet and income statement appear below: Cash dividends were $29. The company sold equipment for $15 that was originally purchased for $6 and that had accumulated depreciation of $2.Required:Using the direct method, determine the net cash provided by (used in) operating activities.

Alcoser Corporation's most recent balance sheet appears below: Net income for the year was $60. Cash dividends were $12. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) investing activities for the year was:

Money received from issuing bonds payable would be included as part of a company's financing activities on the statement of cash flows.

Shimko Corporation's most recent comparative balance sheet and income statement appear below: The company paid a cash dividend of $16 and it did not dispose of any property, plant, and equipment. The company did not issue any bonds payable or repurchase any of its own common stock.The net cash provided by (used in) operating activities for the year was:

Carriveau Corporation's most recent balance sheet appears below: Net income for the year was $172. Cash dividends were $35. The company did not sell or retire any property, plant, and equipment during the year. The net cash provided by (used in) operating activities for the year was:

Randal Corporation recorded the following activity for the year just ended: The net cash provided by (used in) investing activities for the year was:

Clayborn Corporation's net cash provided by operating activities was $118,800; its net income was $105,000; its income taxes were $44,700; its capital expenditures were $93,600; and its cash dividends were $30,200. Required:Determine the company's free cash flow. (Negative amounts should be indicated by a minus sign.)

Megan Corporation's net income last year was $114,000. Changes in the company's balance sheet accounts for the year appear below: The company paid a cash dividend of $64,800 and it did not dispose of any long-term investments or property, plant, and equipment. The company did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The free cash flow for the year was: