$\begin{array}{lr} \text { Net income } & 14,000 \\ \text { Cash dividends paid to stockholders } & 4,000 \\ \text { Cash proceeds from sale of land } & 6,000 \\ \text { Cash proceeds from bank loan } & 10,000 \\ \text { Cash payment (principal) on bank loan } & 2,000 \\ \text { Cash paid to purchase equipment } & 8,000 \end{array}$ The company would report net cash provided by (used in)financing activities of:

A) $(5,000). B) $4,000. C) $10,000. D) $12,000. A) $(5,000). B) $4,000. C) $10,000. D) $12,000.

The information below was obtained from the financial statements of Faraday Corp.Based on this information,what was the amount of the net cash provided by operating activities during the current year? $\begin{array}{lrr} & \text { Prior Year } & \text { Current Year } \\ \text { Net Income } & \$ 500,000 & \$ 655,000 \\ \text { Depreciation Expense } & 60,000& 72,000 \\ \text { Accounts Receivable } & 89,000& 78,000 \\ \text { Inventory } & 116,000 & 142,000 \\ \text { Accounts Payable } & 120,000& 117,000 \\ \text { Salaries and Wages Payable } & 56,000 & 68,000 \end{array}$

A) $713,000 B) $721,000 C) $661,000 D) $637,000 A) $713,000 B) $721,000 C) $661,000 D) $637,000

Exam 12: Statement of Cash Flows

A company bought $250,000 of equipment with an expected life of ten years and no residual value.After six years the company sold the equipment for $94,000.If the company uses straight-line depreciation and the indirect method is used to determine cash flows from operating activities,which of the following reflects how the sale of the equipment would be reported in the statement of cash flows?

(Multiple Choice)

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Question 21

Match each term with the appropriate definition.Not all definitions will be used. -Statement of Cash Flows

(Multiple Choice)

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Question 22

Match each term with the appropriate definition.Not all definitions will be used. -Net Income

(Multiple Choice)

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Question 23

Which of the following would not be added to net income in calculating cash flows from operating activities on a statement of cash flows prepared using the indirect method?

(Multiple Choice)

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Question 24

Match each term with the appropriate definition.Not all definitions will be used. -Investing Activities

(Multiple Choice)

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Question 25

Match each term with the appropriate definition.Not all definitions will be used. -Property,Plant,and Equipment

(Multiple Choice)

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Question 26

If the calculation of cash flows from operating activities starts with net income,the company:

(Multiple Choice)

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Question 27

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

(Multiple Choice)

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Question 28

Net income 14,000 Cash dividends paid to stockholders 4,000 Cash proceeds from sale of land 6,000 Cash proceeds from bank loan 10,000 Cash payment (principal) on bank loan 2,000 Cash paid to purchase equipment 8,000 The company would report net cash provided by (used in)financing activities of:

(Multiple Choice)

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(87)

Question 29

The information below was obtained from the financial statements of Faraday Corp.Based on this information,what was the amount of the net cash provided by operating activities during the current year? Prior Year Current Year Net Income \ 500,000 \ 655,000 Depreciation Expense 60,000 72,000 Accounts Receivable 89,000 78,000 Inventory 116,000 142,000 Accounts Payable 120,000 117,000 Salaries and Wages Payable 56,000 68,000

(Multiple Choice)

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Question 30

Which of the following would be classified as an operating activity on the statement of cash flows using the direct method?

(Multiple Choice)

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Question 31

Equipment with a cost of $20,000 and a book value of $6,000 was sold during the year for cash of $18,000.Additional equipment was purchased during the year for cash. What was the amount of cash paid for purchases of equipment during the year?

(Multiple Choice)

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Question 32

When preparing the operating activities section of the statement of cash flows using the indirect method,a decrease in accounts receivable is subtracted from net income.

(True/False)

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Question 33

The accounting records for the Fox Hollow Company show that its cost of goods sold for the year was $300,000.In addition,it had an increase in inventory of $5,000 and a decrease in accounts payable of $6,000.As a result under the direct method,the amount of cash paid to suppliers for the year was:

(Multiple Choice)

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Question 34

Cleveland Company paid cash to purchase equipment costing $957,600 this year.Also this year,the company sold for $196,000 cash,equipment that originally cost $644,000 five years ago.How should these transactions be listed in the statement of cash flows?

(Multiple Choice)

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Question 35

Assume a company uses the indirect method to prepare its statement of cash flows.If Accounts Receivable decreases and Unearned Revenue increases during an accounting period,what does the company do with the changes in these accounts to calculate cash flows from operating activities?

(Multiple Choice)

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Question 36

Which of the following would be included in cash flows from investing activities?

(Multiple Choice)

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Question 37

Patterson Co.'s Depreciation Expense is $56,000 and the beginning and ending Accumulated Depreciation balances are $420,000 and $434,000,respectively.What is the cash paid for depreciation?

(Multiple Choice)

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Question 38

Complete the last two columns in the following table by indicating whether each transaction would be reported: Part a.In the operating (O),investing (I),or financing (F)activities section of the statement of cash flows or if the transaction would be reported instead as a noncash investing and/or financing transaction (Noncash). Part b.As a cash inflow (+)or a cash outflow (−)on the statement of ash flows.(Leave this cell blank if you entered "Noncash" for part a. )

(Essay)

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Question 39

Which of the following classifications is not used on the statement of cash flows?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 222

Match each term with the appropriate definition.Not all definitions will be used. -Statement of Cash Flows

Match each term with the appropriate definition.Not all definitions will be used. -Net Income

Which of the following would not be added to net income in calculating cash flows from operating activities on a statement of cash flows prepared using the indirect method?

Match each term with the appropriate definition.Not all definitions will be used. -Investing Activities

Match each term with the appropriate definition.Not all definitions will be used. -Property,Plant,and Equipment

If the calculation of cash flows from operating activities starts with net income,the company:

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

Net income 14,000 Cash dividends paid to stockholders 4,000 Cash proceeds from sale of land 6,000 Cash proceeds from bank loan 10,000 Cash payment (principal) on bank loan 2,000 Cash paid to purchase equipment 8,000 The company would report net cash provided by (used in)financing activities of:

Which of the following would be classified as an operating activity on the statement of cash flows using the direct method?

Equipment with a cost of $20,000 and a book value of $6,000 was sold during the year for cash of $18,000.Additional equipment was purchased during the year for cash. What was the amount of cash paid for purchases of equipment during the year?

When preparing the operating activities section of the statement of cash flows using the indirect method,a decrease in accounts receivable is subtracted from net income.

The accounting records for the Fox Hollow Company show that its cost of goods sold for the year was $300,000.In addition,it had an increase in inventory of $5,000 and a decrease in accounts payable of $6,000.As a result under the direct method,the amount of cash paid to suppliers for the year was:

Cleveland Company paid cash to purchase equipment costing $957,600 this year.Also this year,the company sold for $196,000 cash,equipment that originally cost $644,000 five years ago.How should these transactions be listed in the statement of cash flows?

Assume a company uses the indirect method to prepare its statement of cash flows.If Accounts Receivable decreases and Unearned Revenue increases during an accounting period,what does the company do with the changes in these accounts to calculate cash flows from operating activities?

Which of the following would be included in cash flows from investing activities?

Patterson Co.'s Depreciation Expense is $56,000 and the beginning and ending Accumulated Depreciation balances are $420,000 and $434,000,respectively.What is the cash paid for depreciation?

Which of the following classifications is not used on the statement of cash flows?

Business Decisions and Financial Accounting

The Balance Sheet

The Income Statement

Adjustments,Financial Statements,and Financial Results

Fraud,Internal Control,and Cash

Merchandising Operations and the Multistep Income Statement

Inventory and Cost of Goods Sold

Receivables,Bad Debt Expense,and Interest Revenue

Long-Lived Tangible and Intangible Assets

Liabilities

Stockholders Equity

Measuring and Evaluating Financial Performance

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