Exam 12: The Statement of Cash Flows

Pound Co.reported the following information at the end of 2016 and 2017: Land \ 35,000 \ 100,000 Common stock 200,000 265,000 An analysis of Pound's records indicated that there were no cash flow effects resulting from the changes in the two accounts presented above.How should Pound report the changes in these accounts on a statement of cash flows?

When using the indirect method, how is the decrease in accounts payable shown on the statement of cash flows?

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. -Accounts payable decreased

Use the information below for Shorter Inc.for 2016 and 2017 to answer the following question. Equipment, December 31,2016 \ 65,000 Equipment, December 31,2017 72,000 Accumulated depreciation, December 31,2016 39,000 Accumulated depreciation, December 31,2017 30,000 During 2017, Shorter 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. Assume that all purchases of equipment were paid with cash.How much cash was paid by Shorter for the purchase of equipment during 2017?

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.