Lagos Corp.recorded sales of $345,000 in 2010,in addition its accounts receivable and accounts payable balances at the beginning and end of 2010 were as follows: \[\begin{array} { l c c } & \text { Jan. 1,2010 } & \text { Dec. 31, 2010 } \\ \text { Accounts Receivable } & \$ 65,000 & \$ 90,000 \\ \text { Accausts Payable } & \$ 32,000 & \$ 28,000 \end{array}\] How much cash did Lagos collect from customers in 2010?

A) $345,000 B) $320,000 C) $324,000 D) $316,000 A) $345,000 B) $320,000 C) $324,000 D) $316,000

The financial statements for Warren Company show the following: Cost of goods sold $725,000 \[\begin{array} { | l | r | r | } \hline & \text { Beginning Balance } & \text { Ending Balance } \\ \hline \text { Merchandise Irventory } & \$ 45,000 & \$ 56,000 \\ \hline \text { Accounts Receivable } & 53,000 & 50,000 \\ \hline \text { Accounts Payable } & 37,000 & 42,000 \\ \hline \end{array}\] Based on this information,cash paid for merchandise was

A) $736,000 B) $719,000 C) $731,000 D) $741,000 A) $736,000 B) $719,000 C) $731,000 D) $741,000

Exam 3: Income Flows Versus Cash Flows: Understanding the Statement of Cash Flows

Use the following information to prepare a statement of cash flows (indirect method)for Sink Industries for the year ended December 31,2010: Net income for the year 2010 was $5,000.Accounts receivable decreased $2,000,while inventories increased $4,000,and accounts payable decreased $7,000.Depreciation expense included in net income was $8,000. During the year,a piece of land held for future expansion was sold for its book value of $8,000 and a new service truck was purchased for $14,000. The company borrowed $18,000 on a two-year note from the bank.Dividends of $6,000 were paid in cash.Preferred stock was issued to retire $7,000 of long-term notes payable. The beginning cash balance was $10,000 and the ending balance was $20,000.

(Essay)

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Question 61

As a complement to the balance sheet and the income statement,the statement of cash flows is an informative statement for analysts for all the following reasons except:

(Multiple Choice)

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Question 62

Which of the following transactions would not create a cash flow?

(Multiple Choice)

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Question 63

Cash flow from operations should include none of the cash flows associated with marketable securities if such transactions are viewed as ___________________________________.

(Short Answer)

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Question 64

The expense incurred by issuing stock options should be

(Multiple Choice)

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Question 65

Which of the following is not one of the reasons why net income differs from cash flows from operations under the indirect method of calculating cash flows?

(Multiple Choice)

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Question 66

Lui Company's 2010 income statement reported total sales revenue of $350,000.The 2009-2010 comparative balance sheets showed that accounts receivable increased by $20,000.The 2010 "cash receipts from customers" would be

(Multiple Choice)

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Question 67

When preparing the statement of cash flows using the indirect method,an increase in inventories would appear as

(Multiple Choice)

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Question 68

When preparing the statement of cash flows using the indirect method,the payment of dividends would appear as

(Multiple Choice)

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Question 69

Firms with short operating cycles will experience less of a lag between the creation and delivery of their products and the collection of cash from customers because

(Multiple Choice)

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Question 70

While preparing a statement of cash flows,you encountered the following transaction: February 1,2011: Galvinize Corporation acquired a small office building in exchange for 5,000 shares of its own common stock;par value $10 per share;market value $15 per share. A.Should this transaction be shown on the statement of cash flows? B.Why or why not?

(Essay)

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Question 71

The receipt of dividends from an investee would be classified as ____________________ activities in the statement of cash flows.

(Short Answer)

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Question 72

One factor that may cause cash flow from operations to differ from net income is the length of the ______________________________.

(Short Answer)

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Question 73

When preparing the statement of cash flows using the indirect method,an increase in accounts payable would appear as

(Multiple Choice)

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Question 74

Lagos Corp.recorded sales of $345,000 in 2010,in addition its accounts receivable and accounts payable balances at the beginning and end of 2010 were as follows: Jan. 1,2010 Dec. 31, 2010 Accounts Receivable \ 65,000 \ 90,000 Accausts Payable \ 32,000 \ 28,000 How much cash did Lagos collect from customers in 2010?

(Multiple Choice)

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Question 75

Which of the following is a cash flow from operating activities?

(Multiple Choice)

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Question 76

____________________ activities relate to the normal operations of the firm,selling goods and providing services.

(Short Answer)

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Question 77

Bankers Company reported net income of $40,000,which included depreciation expense and depletion expense of $21,000 and $18,000,respectively.The following changes also occurred during 2010: Irventory \ 10,000 decrease Accourts payable 5,000 decrease Notes payable (leng-term) 15,000 decrease Income taxes payable 7,000 increase Accourts receivable 10,000 increase Required: Calculate cash flows from operating activities.

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Question 78

Interest expense and interest revenue would be classified as ____________________ activities in the statement of cash flows.

(Short Answer)

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Question 79

The financial statements for Warren Company show the following: Cost of goods sold $725,000 Beginning Balance Ending Balance Merchandise Irventory \ 45,000 \ 56,000 Accounts Receivable 53,000 50,000 Accounts Payable 37,000 42,000 Based on this information,cash paid for merchandise was

(Multiple Choice)

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Question 80

Showing 61 - 80 of 88

As a complement to the balance sheet and the income statement,the statement of cash flows is an informative statement for analysts for all the following reasons except:

Which of the following transactions would not create a cash flow?

Cash flow from operations should include none of the cash flows associated with marketable securities if such transactions are viewed as ___________________________________.

The expense incurred by issuing stock options should be

Which of the following is not one of the reasons why net income differs from cash flows from operations under the indirect method of calculating cash flows?

Lui Company's 2010 income statement reported total sales revenue of $350,000.The 2009-2010 comparative balance sheets showed that accounts receivable increased by $20,000.The 2010 "cash receipts from customers" would be

When preparing the statement of cash flows using the indirect method,an increase in inventories would appear as

When preparing the statement of cash flows using the indirect method,the payment of dividends would appear as

Firms with short operating cycles will experience less of a lag between the creation and delivery of their products and the collection of cash from customers because

The receipt of dividends from an investee would be classified as ____________________ activities in the statement of cash flows.

One factor that may cause cash flow from operations to differ from net income is the length of the ______________________________.

When preparing the statement of cash flows using the indirect method,an increase in accounts payable would appear as

Which of the following is a cash flow from operating activities?

____________________ activities relate to the normal operations of the firm,selling goods and providing services.

Interest expense and interest revenue would be classified as ____________________ activities in the statement of cash flows.

The financial statements for Warren Company show the following: Cost of goods sold $725,000 Beginning Balance Ending Balance Merchandise Irventory \ 45,000 \ 56,000 Accounts Receivable 53,000 50,000 Accounts Payable 37,000 42,000 Based on this information,cash paid for merchandise was

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