Exam 12: Statement of Cash Flows

An outdoor water park that has a calendar year-end and is located in an area of the country that has warmer weather during April through September and colder weather during the rest of the year is likely to have:

Augusta Company reported that its bonds with a face value of $40,000 and a carrying value of $42,400 are retired for $44,800 cash.The amount to be reported under cash flows from financing activities is:

Wilson Co.uses the indirect method to determine its cash flow from operations.During the course of the year,Wilson's Accounts Receivable increased by $28,000 and its Accounts Payable decreased by $14,000.As a result of these two items,the net addition (or subtraction)to convert net income to cash flow from operations equals:

Which of the following statements about preparation of the statement of cash flows is correct?

Assume that the direct method is used to prepare the operating activities section of the statement of cash flows.Why is a decrease in Accounts Receivable decrease added to sales revenue when computing cash collected from customers?

Which of the following journal entries has an effect on cash provided by (used in)operating activities?

Match each term with the appropriate definition.Not all definitions will be used. -Direct Method

The payment of salaries and wages would be reported as an operating 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)investing activities of:

When the indirect method is used to determine net cash provided by (used in)operating activities,subtracting an increase in Accounts Receivable from net income eliminates the effect of recording revenue that:

Which of the following statements about the reporting of operating cash flows using the direct method is correct?

When the indirect method is used,if a prepaid expense account increases during the accounting period,the change in the prepaid expense account is:

A general rule for the relationship between operating,investing,and financing cash flows and the financial statements is:

Identify whether each of the following list of items is an operating activity cash flow (O),an investing activity cash flow (I),a financing activity cash flow (F),or none of these (None). 1.________ Proceeds from sale of equipment 2.________ Cash collected from customers 3.________ Payments to suppliers 4.________ Stock repurchases 5.________ Repayment of bond principal 6.________ Payment of income tax 7.________ Purchases of bonds from other companies 8.________ Purchases of equipment financed with a note 9.________ Interest and cash dividends received 10.________ Payment of cash dividends

If Cost of Goods Sold is $72,500 and the beginning and ending Inventory balances are $9,000 and $6,500,respectively,inventory purchases for cash equal:

Assume a company uses the direct method to prepare its statement of cash flows.If the company's inventory and accounts payable both increase during the accounting period,how would these changes affect cash flow calculations?

Which of the following statements about the statement of cash flows is not correct?

Blanton Ridge,Inc.'s Insurance Expense is $14,000 and the beginning and ending balances of Prepaid Insurance are $3,000 and $4,000,respectively,the cash paid for insurance is:

Cash flows from investing activities include all of the following except a(n):

Treasury stock purchases made with cash are classified as cash outflows from financing activities on the statement of cash flows.