For each of the following separate cases, use the information provided to calculate the missing cash inflow or cash outflow using the direct method. \(\begin{array}{c} \begin{array}{|l} \hline \text {(a)}\\ \hline\\ \hline\\ \hline\\ \hline\\ \hline\\ \hline \text {(b)}\\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \text {(c)}\\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{array} \begin{array}{|l|} \hline \text { Accounts receivable balances:}\\ \hline \text { Beginning of year}\\ \hline \text { End of year}\\ \hline \text { Sales revenue (all on credit)}\\ \hline \text { Cash received from customers}\\ \hline \\ \hline \text { Accounts payable balances:}\\ \hline \text { Beginning of year}\\ \hline \text { End of year.}\\ \hline \text { Merchandise inventory balances:}\\ \hline \text { Beginning of year}\\ \hline \text { End of year}\\ \hline \text { Cost of goods sold}\\ \hline \text { Cash paid for merchandise inventory}\\ \hline \\ \hline \text { Interest payable balances:}\\ \hline \text { Beginning of year}\\ \hline \text { End of year}\\ \hline \text { Interest expense}\\ \hline \text { Cash paid for interest}\\ \hline \end{array} \begin{array}{l|} \hline\\ \hline \$ 60,000 \\ \hline 63,000 \\ \hline 395,000 \\ \hline \$\underline{\quad\quad} \\ \hline\\ \hline\\ \hline \$ 42,000 \\ \hline 31,000 \\ \hline\\ \hline 50,000 \\ \hline 52,500 \\ \hline 250,000 \\ \hline \$ \underline{\quad\quad} \\ \hline \\ \hline \\ \hline 7,500 \\ \hline 8,200 \\ \hline 31,000 \\ \hline\$\underline{\quad\quad} \\ \hline \end{array} \end{array}\)

The answer of For each of the following separate cases,...

For each of the following independent cases, use the information provided to calculate the missing cash inflow or cash outflow using the direct method. \(\begin{array}{|l|l|cc|} \hline \text { (a) } & \text { Interest payable, beginning-year } &\$4,200\\ \hline \text { } & \text {Interest expense. } &26,700\\ \hline \text { } & \text {Interest payable, year-end } &3,000\\ \hline\text { } & \text { Cash paid for interest } & \text { }\\ \hline \text { } & \text { } & \text { }\\ \hline \text { (b) } & \text { Prepaid insurance, beginning-year.} & \$7,000\\ \hline \text { } & \text { Insurance expense } &16,800\\ \hline \text { } & \text {Prepaid insurance, year-end. } &3,400\\ \hline \text { } & \text { Cash paid for insurance. } & \text { }\\ \hline\text { } & \text { } & \text { }\\ \hline \text { (c) } & \text { Interest receivable, beginning-year } & \$800\\ \hline \text { } & \text { Interest revenue } &12,600\\ \hline \text { } & \text {Interest receivable, year-end } & 1,200\\ \hline \text { } & \text { Cash received for interest. } & \text { }\\ \hline \text { } & \text { } & \text { }\\ \hline\text { (d) } & \text { Accounts payable, beginning-year. } & \$60,000\\ \hline \text { } & \text { Cost of goods sold. } &244,000\\ \hline \text { } & \text {Merchandise inventory, beginning-year. } & 35,000\\ \hline \text { } & \text {Merchandise inventory, year-end } &40,500\\ \hline \text { } & \text { Accounts payable, year-end } & 64,800\\ \hline \text { } & \text { Cash paid for merchandise . } & \text { }\\ \hline \end{array}\)

The answer of For each of the following independent cases,...

Use the following information to calculate cash paid for income taxes: \[\begin{array} { |l | r| } \hline \text { Income tax expense } & \$ 43,000 \\ \hline \text { Income tax payable, January 1 } & 9,100 \\ \hline \text { Income tax payable, December } 31 & 10,200\\ \hline \end{array}\]

A) $23,700. B) $52,100. C) $53,200. D) $41,900. E) $43,000. A) $23,700. B) $52,100. C) $53,200. D) $41,900. E) $43,000.

Use the following information to calculate cash received from dividends: $\begin{array}{llcc} \text { Divdends reveruse } & \$63,500 \\ \text {Dividends receivable, January I } &3,600\\ \text { Dividends receivable, December 31 } &3,100\\ \end{array}$

A) $63,500. B) $63,000. C) $64,000. D) $67,100. E) $60,400. A) $63,500. B) $63,000. C) $64,000. D) $67,100. E) $60,400.

In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: \[\begin{array} { | l | r | } \hline \text { Net income for the year was } & \$ 52,000 \\ \hline \text { Accounts payable decreased by } & 18,000 \\ \hline \text { Accounts receivable increased by } & 25,000 \\ \hline \text { Inventories increased by } & 5,000 \\ \hline \text { Depreciation expense was } & 30,000 \\ \hline \end{array}\] Net cash provided by operating activities was:

A) $34,000. B) $60,000. C) $70,000. D) $80,000. E) $52,000. A) $34,000. B) $60,000. C) $70,000. D) $80,000. E) $52,000.

Exam 12: Reporting Cash Flows

For each of the following separate cases, use the information provided to calculate the missing cash inflow or cash outflow using the direct method. (a) (b) (c) Accounts receivable balances: Beginning of year End of year Sales revenue (all on credit) Cash received from customers Accounts payable balances: Beginning of year End of year. Merchandise inventory balances: Beginning of year End of year Cost of goods sold Cash paid for merchandise inventory Interest payable balances: Beginning of year End of year Interest expense Cash paid for interest \ 60,000 63,000 395,000 underline \ 42,000 31,000 50,000 52,500 250,000 \ 7,500 8,200 31,000 underline

(Essay)

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Question 221

Typical cash flows from investing activities include each of the following except:

(Multiple Choice)

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Question 222

For each of the following independent cases, use the information provided to calculate the missing cash inflow or cash outflow using the direct method. (a) Interest payable, beginning-year \4 ,200 Interest expense. 26,700 Interest payable, year-end 3,000 Cash paid for interest (b) Prepaid insurance, beginning-year. \7 ,000 Insurance expense 16,800 Prepaid insurance, year-end. 3,400 Cash paid for insurance. (c) Interest receivable, beginning-year \8 00 Interest revenue 12,600 Interest receivable, year-end 1,200 Cash received for interest. (d) Accounts payable, beginning-year. \6 0,000 Cost of goods sold. 244,000 Merchandise inventory, beginning-year. 35,000 Merchandise inventory, year-end 40,500 Accounts payable, year-end 64,800 Cash paid for merchandise .

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Question 223

The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers, and subtracts the major items of operating cash disbursements, such as cash paid for merchandise, is referred to as the:

(Multiple Choice)

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Question 224

Use the following information to calculate cash paid for income taxes: Income tax expense \ 43,000 Income tax payable, January 1 9,100 Income tax payable, December 31 10,200

(Multiple Choice)

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Question 225

The FASB requires a reconciliation of net income to net cash provided or used by operating activities when the direct method is used (which can be reported in the notes).

(True/False)

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Question 226

Depreciation expense is not reported on a statement of cash flows prepared under the direct method.

(True/False)

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Question 227

Explain how the cash flows from operating activities section of the statement of cash flows is prepared using the indirect method.

(Essay)

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Question 228

Investing activities include: (a) the purchase and sale of long-term assets, (b) lending and collecting on notes receivable, and (c) the purchase and sale of short-term investments in the securities of other entities, other than cash equivalents and trading securities.

(True/False)

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Question 229

The statement of cash flows reports and proves the net change in cash for a reporting period.

(True/False)

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Question 230

The statement of cash flows reports:

(Multiple Choice)

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Question 231

Use the following information to calculate cash received from dividends: Divdends reveruse \6 3,500 Dividends receivable, January I 3,600 Dividends receivable, December 31 3,100

(Multiple Choice)

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Question 232

When preparing a statement of cash flows using the indirect method, each of the following should be classified as an operating cash flow except:

(Multiple Choice)

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Question 233

Investments that are readily convertible to a known amount of cash and are sufficiently close to their maturity so that the market value is unaffected by interest rate changes are ________.

(Short Answer)

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Question 234

The reporting of investing activities in the statement of cash flows is identical under either the direct or indirect methods.

(True/False)

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Question 235

In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was \ 52,000 Accounts payable decreased by 18,000 Accounts receivable increased by 25,000 Inventories increased by 5,000 Depreciation expense was 30,000 Net cash provided by operating activities was:

(Multiple Choice)

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Question 236

The direct method of reporting operating cash flows:

(Multiple Choice)

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Question 237

The statement of cash flows is:

(Multiple Choice)

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Question 238

Jeffreys Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $240,000 was sold for a $10,000 loss in Year 2. The following selected information is available for Jeffreys Company from its comparative balance sheet. Compute the cash received from the sale of the equipment. At December 31 Year 2 Year 1 Equipment \ 510,000 \ 750,000 Accumulated Depreciation-Equipment 328,000 500,000

(Multiple Choice)

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Question 239

Typical cash flows from investing activities include each of the following except:

The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers, and subtracts the major items of operating cash disbursements, such as cash paid for merchandise, is referred to as the:

Use the following information to calculate cash paid for income taxes: Income tax expense \ 43,000 Income tax payable, January 1 9,100 Income tax payable, December 31 10,200

The FASB requires a reconciliation of net income to net cash provided or used by operating activities when the direct method is used (which can be reported in the notes).

Depreciation expense is not reported on a statement of cash flows prepared under the direct method.

Explain how the cash flows from operating activities section of the statement of cash flows is prepared using the indirect method.

Investing activities include: (a) the purchase and sale of long-term assets, (b) lending and collecting on notes receivable, and (c) the purchase and sale of short-term investments in the securities of other entities, other than cash equivalents and trading securities.

The statement of cash flows reports and proves the net change in cash for a reporting period.

The statement of cash flows reports:

Use the following information to calculate cash received from dividends: Divdends reveruse \6 3,500 Dividends receivable, January I 3,600 Dividends receivable, December 31 3,100

When preparing a statement of cash flows using the indirect method, each of the following should be classified as an operating cash flow except:

Investments that are readily convertible to a known amount of cash and are sufficiently close to their maturity so that the market value is unaffected by interest rate changes are ________.

The reporting of investing activities in the statement of cash flows is identical under either the direct or indirect methods.

The direct method of reporting operating cash flows:

The statement of cash flows is:

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