Exam 14: How Well Am I Doing Financial Statement Analysis

During the year sales to customers were $300,000.Accounts receivable from customers at the beginning of the year were $50,000 and at the end of the year $25,000.As a result cash inflows from sales to customers totalled?

Accounts receivable increased by $100,000 and accounts payable decreased by $50,000.What will be the net result in terms of cash flow?

Cash flow from investing activities was?

Long-term debt on the balance sheet increased by $100,000 and $50,000 in cash dividends were paid.What will be the net result in cash flow?

If an entity receives cash from the issuance of long-term debt during a year and also pays out cash to reduce a long-term debt,both a cash inflow and a cash outflow will be reported in the financing activities section of the cash flow statement.

A decrease in a liability will be reported as a use of cash on the cash flow statement.

A business sold equipment for $15,000 in cash proceeds which had an original cost of $50,000 and accumulated depreciation at the date of sale of $40,000.Which of the statements below is true?

The non-current asset section of a business's balance sheet is below. These were the only depreciable assets owned by the business.During the current year the business sold equipment which it had purchased five years previously at a cost of $10,000.The accumulated depreciation on the equipment sold was $8,000 and the cash received from the sale was $3,000.There were no additions of equipment during the year.What was the depreciation expense recorded during the current year?

Which of the following statements is true about the operating activities section?

If an entity acquires a capital asset and pays for it in full with the issuance of long-term debt,a use of cash will be reported under investing activities and a source of cash of the same amount will be reported under financing activities.

During the year sales to customers were $300,000.Accounts receivable from customers at the beginning of the year were $25,000 and at the end of the year $50,000.As a result cash inflows from sales to customers totalled?

A cash flow statement will be divided into separate sections reporting cash flows resulting from operating activities,investing activities,financing activities and shareholder equity activities.

A business bought some land for future expansion at a cost of $100,000 and paid for it in full by issuing additional shares of capital stock.This will be reported in which section(s)of the cash flow statement?

Inventory decreased by $100,000 and wages payable decreased by $50,000.What will be the net result in terms of cash flow?