Exam 12: The Statement of Cash Flows

Caler Corp.reported the following information for 2016 and 2017. Accounts receivable, December 31,2016 \ 67,000 Accounts receivable, December 31,2017 63,000 Sales (all on credit) -2017 745,000 How much cash was collected from customers during 2017?

Presented below is the operating activities section of the statement of cash flows for Feline Friends Corp.for 2016: Operating activities: Cash collected from customers \ 165,000 Cash payments for merchandise (83,000) Cash payments for operating expenses Net cash inflow from operating activities Which method of preparing the operating activities section has Feline used?

Carpet World Inc.reported the following information for 2016 and 2017. Accounts receivable \ 51,000 \ 57,000 Inventories 42,000 39,000 Accounts payable 43,000 48,000 Net income 60,000 Depreciation expense 8,000 If Carpet World uses the indirect method to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 2017?

The statement of cash flows emphasizes explanations for the change in net income.

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.

For the statement of cash flows, companies are required to classify their cash activities into three categories: operating, investing, and borrowing.

When using the direct method, how is the collection of cash from customers shown on the statement of cash flows?

The accrual-based income statement is considered to be a good indicator of current cash inflows and outflows.

O'Bryan Company began the year with a balance of $18,000 in Salaries and Wages Payable and ended the year with $11,000 in the account.Salaries and Wages Expense for the period amounted to $91,000.Under the direct method, O'Bryan will report cash payments for salaries and wages of:

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. -Paid the cash dividends declared in (g) above.

Which of the following activities is most likely to have a cash flow effect?

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). -Cash sales

Which of the following statements is true?

Cash flows from issuing and repurchasing stock or issuing and repaying (retiring) debt are classified as

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 Receivable increased

In terms of the statement of cash flows, cash includes actual cash items plus certain cash equivalents such as commercial paper, money market funds, and Treasury bills.

Dallas Corp.reported the following information for 2016 and 2017. Interest receivable, December 31,2016 \ 1,100 Interest receivable, December 31,2017 1,400 Interest income-2017 3,200 How much cash was received for interest during 2017?

The financial statement that primarily reflects events related to the operating activities of a business, or the selling of products or providing services is the _________________________.

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

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 common stock to acquire land and a building.