Exam 11: The Cash Flow Statement

A comparative balance sheet reports at least two consecutive years of ending cash balances that can be used to compile a cash flow statement.

Identify the four types of financial statements.

What is the formula for free cash flow?

One formula for determining cash collections from customers is to take Sales plus the increase in Accounts Receivable.

Free cash flow is the anticipated amount of cash available from operations after paying for planned financing of stock and paying dividends.

The operating section of a cash flow statement using the indirect method is prepared differently from the operating section of a cash flow statement using the direct method.

How is the cash flow statement the communicating link between the accrual-based income statement and the cash reported on the balance sheet?

In the indirect method of cash flows, a decrease in inventory would be __________ to net income.

The records of Ashley Boutique showed a net loss of $30,000; depreciation expense of $25,000; and an increase in supplies on hand of $5,000. The amount of net cash flow from operating activities using the indirect method is __________.

An example of a cash outflow from financing activities is:

The cash flow statement is prepared to show why the cash amount changed from the beginning of the period to the end of the period.