Exam 12: Statement of Cash Flows

Which of the following statements about the calculation of cash flows from operating activities under the direct method is correct?

Suppose a company generally records revenues and expenses before receiving or making cash payments.Which of the following statements is not correct?

The net cash flow provided by operating activities is an inflow of $37,042,the net cash flow used in investing activities is $16,831,and the net cash flow used in financing activities is $26,397.If the beginning cash account balance is $11,283,what is the ending cash account balance?

When the indirect method is used,if accounts payable increases during the accounting period,the change in accounts payable is:

The Extra Surplus Company's Balance Sheet for December 31,2017 and the Income Statement for 2018 are shown below. Additional data: • Sales were $13,000;$8,000 in cash was received from customers. • Bought new land for cash,$10,000. • Sold other land for its book value of $5,000. • Paid $1,000 principal on the long-term note payable and $1,000 in interest. • Issued new shares of stock for $10,000 cash. • Cash dividends of $1,000 were declared and paid to stockholders. • Paid $5,500 on accounts payable. • No inventory purchases were made;other expenses were incurred on account. • All wages were paid in cash. • Other expenses were on account. Required: Part a.Prepare a balance sheet at December 31,2018. Part b.Prepare the statement of cash flows using the direct method.

Marion Manufacturing had the following cash flows for the current year.The company uses the direct method in preparing the statement of cash flows. Cash receipts from issuance of stock 60,000 Bonds payable issued at face value 250,000 Cash dividends received from long-term investments 4,500 Cash paid for wages 20,000 Cash paid for dividends 5,000 Cash received from customers 42,500 Cash paid for other operating expenses 19,500 Cash paid to purchase equipment 100,000 What is the net cash flows provided by (used in)financing activities?

Bardell,Inc.prepared its statement of cash flows for the year.The following information is taken from that statement: What is the amount of net cash provided by (used in)financing activities?

Which of the following items is considered to be a cash equivalent?

During the current year,Woodson paid $9,000 which it owed from its prior year income tax liability and $60,000 for its current year tax liability.The company still owes $12,000 at the end of the current year.How much should the company report as cash paid for income taxes on its statement of cash flows for the current year?

Which of the statements below is correct when comparing the direct and indirect methods of reporting operating cash flows?

Which of the following would not be included in the cash and cash equivalents amount reported on the balance sheet?

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

Which of the following statements best describes the reason Depreciation Expense is added to net income when preparing the statement of cash flows?

In arriving at cash from operating activities,adding a decrease in Supplies to net income eliminates the effect of recording expenses that:

Cash flows from operating activities include:

During the current year,Kelso Construction had $976,000 in cash sales and $3,552,000 in credit sales.The Accounts Receivable balance was $848,000 at the beginning of the year and $680,000 at the end of the year.What was the total cash collected from customers during the year?

Cash flows from financing activities include all of the following except:

Which of the following represents a cash inflow from financing activities?

Material noncash investing and financing transactions are:

The cash flow statement should be evaluated by examining the cash flow pattern suggested by the: