Exam 11: The Statement of Cash Flows

Robbins Company distributed a 5% common stock dividend, this will be reported in the financing activity section of the cash flow statement.

Changes in all current assets EXCEPT ________ are adjustments to net income in the operating section of an indirect cash flow statement.

A Statement of Cash Flows would NOT disclose:

Cost of goods sold for the year was $840,000. Inventory was $64,000 at the beginning of the year and $89,000 at the end of the year. There were no changes in the amount in account payable for the year. Cash payment for merchandise to be reported under the direct method is:

Investing Cash Flows affect:

Changes in the long-term assets and long-term liabilities accounts must be analyzed to determine how they are presented in the operating section of a cash flow statement.

Payments to suppliers include items such as employee compensation, interest and income taxes.

Which of the following is NOT a part of operating activities?

The sum of the net increases/decreases in the operating, investing and financing sections of the cash flow statement is equal to the change in cash over the period.

Bach Company sold an asset with a book value of $54,000 for $90,000 cash. Which of the following is a TRUE statement?

A purchase of new equipment on a note payable under the direct method would be reported:

Under the direct method, amortization expense is added to net income.

Danio Corp. has average Accounts Payable of $5,000 and cost of goods sold of $25,000; the Accounts Payable payment period for Danio is 73 days.

Twin Peaks Industries has an inventory turnover of 111 days, an Accounts Payable turnover of 77 days and an Accounts Receivable turnover of 79 days. Twin Peaks' cash conversion cycle is:

Records for Serenity Sounds show net income of $35,000; depreciation expense of $11,000; and cash dividends paid of $4,000. The cash flow from operating activities on the cash flow statement using the indirect method is:

When a corporation receives dividends, they are shown as a(n)______ when using the direct method.

The Statement of Cash Flows is divided into two categories - operations and investments.

Which would be subtracted from net income in the operating section of an indirect cash flow statement?

Which of the following is NOT a cash inflow or outflow from an investing activity?

Enterprise Industries' Accounts Receivable decreased by $27,000 and its Accounts Payable decreased by $17,000. What is the net effect on cash from operations under the indirect method?