Use the information below for Dakota Corp.for 2016 and 2017 to answer the following question. $\begin{array}{lr} \text { Bonds payable, December } 31,2016 & \$ 500,000 \\ \text { Bonds payable, December } 31,2017 & 800,000 \\ \text { Loss on bond retirement-2017 } & 15,000 \\ \text { Interest expense on bonds }-2017 & 45,000 \end{array}$ At the end of 2017, Dakota issued bonds at par value for $800,000 cash.The proceeds from these bonds were used to retire the $500,000 bond issue outstanding at the end of 2016 (before their maturity date).All interest expense was paid in cash during 2017. How much did Dakota pay to retire the $500,000 bond issue during 2017?

A) $485,000 B) $500,000 C) $515,000 D) $560,000 A) $485,000 B) $500,000 C) $515,000 D) $560,000

The following items were reported on the balance sheets and income statement for the Flying Mullet Company: $\begin{array}{lr} \text { Accounts receivable, December } 31,2016 & \$ 85,000 \\ \text { Accounts receivable, December } 31,2017 & 98,000 \\ \text { Sales-2017 } & 750,000 \end{array}$ How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows under the indirect method?

A) As an addition to sales B) As a deduction from sales C) As an addition to net income D) As a deduction from net income A) As an addition to sales B) As a deduction from sales C) As an addition to net income D) As a deduction from net income

Use the equation presented below to answer the question that follows: \[\begin{array} { l } \text { Cash } = \mathrm { CL } + \mathrm { LTL } + \mathrm { CS } + \mathrm { RE } - \mathrm { NCCA } - \mathrm { LTA } \\ \text { where: } \quad \mathrm { CL } = \text { Current liabilities } \\ \text { LTL = Long-term liabilities } \\ \text { CS } = \text { Common stock } \\ \mathrm { RE } = \text { Retained earnings } \\ \text { NCCA } = \text { Noncash current assets } \\ \text { LTA } = \text { Long-term assets } \\ \end{array}\] ? Which of the following activities results in a cash outflow?

A) Decreases in noncash current assets (NCC A) B) Decreases in long-term assets (LT A) C) Increases in long-term liabilities (LTL) D) Decreases in retained earnings (R E) A) Decreases in noncash current assets (NCC A) B) Decreases in long-term assets (LT A) C) Increases in long-term liabilities (LTL) D) Decreases in retained earnings (R E)

Exam 12: The Statement of Cash Flows

The decrease in accounts receivable over a period results in a(n) _________________________ to net income reported in the operating activities section of the statement of cash flows using the indirect method.

(Short Answer)

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Question 161

___________________________________ is a measure of a company's ability to meet its future debt obligations after paying income taxes and interest costs and making capital expenditures.

(Short Answer)

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Question 162

Carson City Saloon purchased a $25,000 truck for catering from its restaurant.It made a down payment of one-fourth of the price.What combination of amounts would affect the income statement and statement of cash flows for the purchase of the truck? Income Statement Cash Flow Statement a. \ 25,000 \- 0- b. \- 0- (\ 25,000) c. \ 25,000 (\ 6,250) d. \- 0- (\ 6,250)

(Short Answer)

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Question 163

Which balance sheet accounts are most affected by investing activities?

(Multiple Choice)

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Question 164

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

(Multiple Choice)

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Question 165

Which balance sheet accounts are most affected by financing activities?

(Multiple Choice)

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Question 166

All the information needed to compute the cash flow adequacy ratio is found on the balance sheet.

(True/False)

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Question 167

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

(Multiple Choice)

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Question 168

It is not possible for Cash to decrease from Yr.1 to Yr.2 if income rises over this period.

(True/False)

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Question 169

Use the information below for Dakota Corp.for 2016 and 2017 to answer the following question. Bonds payable, December 31,2016 \ 500,000 Bonds payable, December 31,2017 800,000 Loss on bond retirement-2017 15,000 Interest expense on bonds -2017 45,000 At the end of 2017, Dakota issued bonds at par value for $800,000 cash.The proceeds from these bonds were used to retire the $500,000 bond issue outstanding at the end of 2016 (before their maturity date).All interest expense was paid in cash during 2017. How much did Dakota pay to retire the $500,000 bond issue during 2017?

(Multiple Choice)

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Question 170

The following items were reported on the balance sheets and income statement for the Flying Mullet Company: Accounts receivable, December 31,2016 \ 85,000 Accounts receivable, December 31,2017 98,000 Sales-2017 750,000 How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows under the indirect method?

(Multiple Choice)

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Question 171

Which of the following statements is true?

(Multiple Choice)

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Question 172

Which of the following should be classified as an investing activity on the statement of cash flows?

(Multiple Choice)

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Question 173

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

(True/False)

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Question 174

Under the indirect method, the first line in the operating activities section of the statement of cash flows is the net income or loss for the period.

(True/False)

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Question 175

Which of the following statements is true?

(Multiple Choice)

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Question 176

Springdale Co.reported net income of $200,000.Cash from operations

(Multiple Choice)

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Question 177

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

(Multiple Choice)

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Question 178

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

(Multiple Choice)

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Question 179

When using the direct method, how is depreciation expense recorded on the statement of cash flows?

(Multiple Choice)

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Question 180

Showing 161 - 180 of 205

The decrease in accounts receivable over a period results in a(n) _________________________ to net income reported in the operating activities section of the statement of cash flows using the indirect method.

___________________________________ is a measure of a company's ability to meet its future debt obligations after paying income taxes and interest costs and making capital expenditures.

Which balance sheet accounts are most affected by investing activities?

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

Which balance sheet accounts are most affected by financing activities?

All the information needed to compute the cash flow adequacy ratio is found on the balance sheet.

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

It is not possible for Cash to decrease from Yr.1 to Yr.2 if income rises over this period.

Which of the following statements is true?

Which of the following should be classified as an investing activity on the statement of cash flows?

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

Under the indirect method, the first line in the operating activities section of the statement of cash flows is the net income or loss for the period.

Which of the following statements is true?

Springdale Co.reported net income of $200,000.Cash from operations

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

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

When using the direct method, how is depreciation expense recorded on the statement of cash flows?

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