Exam 5: The Statement of Cash Flows

Which of the following is a deduction from net income when reconciling to cash flow from operating activities?

Which of the following is a financing cash flow?

A Statement of Cash Flows using the direct method and one using the indirect method will each produce the same amount of net cash flow from operating activities.

Only the indirect method of preparing the Statement of Cash Flows reports the reconciliation of net income and net operating cash flow.

RLN received the following cash inflows during 2012. Cash from customers. \2 00,000 Sale of capital assets. 50,000 Interest on loans receivable. 10,000 Proceeds from sale of investments 40,000 What would be cash inflow from investing activities for 2012?

For each transaction,enter a check mark to indicate its effect on cash flow.If there is no effect,do not mark either blank.

Choose the operating cash flow for Bikk Inc.

Cost of goods sold plus an increase in inventory minus an increase in accounts payable would equal cash paid to suppliers.

The adjusted trial balances for a firm,at December 31,2011 and 2010 are as follows: Additional information: No plant assets were sold in 2011.The firm allocates depreciation expense to other operating expense accounts. December 31 Debits: 2011 2010 Cash \ 35,000 \ 32,000 Accounts receivable 33,000 30,000 Inventory 31,000 Property, plant \& equipment 100,000 95,000 Unamortized bond discount Cost of goods sold 250,000 Selling expenses 141,500 172,000 General \& administrative exps 137,000 151,300 Interest expense 4,300 2,600 Income tax expense \ 756,700 \ 976,100 Credits: ==-= = Allowance for doubtful accounts \ 1,300 \ 1,100 Accumulated depreciation 16,500 15,000 Trade accounts payable Income taxes payable Future income tax liability \% callable bonds payable Common shares Other contributed capital Retained earnings Sales \ 756,700 \9 76,100 Required: Determine the firm's 2011 net cash flow from operating activities using the indirect method.

Place a check mark in the appropriate column(s) with respect to each item listed below which indicates where the item would be reported on the Statement of Cash Flows.

The amortization of bond discount on long-term debt should be presented in a Statement of Cash Flows as a(n):

The records of CDE provided the following information for the period ended December 31,2011: Calculate net cash inflow from operating activities for 2011.

KEC paid the following cash outflows during 2012: \begin{array} { l } \text { Cash for dividends}& \$12,000\\ \text {Cash loaned to KEC president. }& 20,000\\ \text {Cash for interest. }&4,000 \\ \text { Cash for income taxes.}&25,000 \\ \text {Cash to purchase KEC common stock. }&40,000 \\ \text {Cash to purchase \mathrm{ABC} common stock.}& 43,000\\\end{array} What would be cash outflow for operating,investing,and financing activities,respectively,for 2012? Note: Under IFRS,interest received may also be an investing activity.

BWL paid the following cash outflows during 2012: Cash for BWL common stock dividends. \2 0,000 Cash for capital assets 100,000 Cash for common stock 30,000 Cash for interest.. 5,000 Cash for investment in securities available for sale. 80,000 What would be BWL's cash outflow for investing and financing activities,respectively,for 2012 under IFRS? Note: Under IFRS,dividends received may also be classified as operating cash flows.

A change in the company's policy on defining cash equivalents should be reported as a cumulative effect adjustment.

Under IFRS,term preferred shares near their maturity date may be classified as cash equivalents for purposes of the Statement of Cash Flows.

Salary expense plus amortization of deferred compensation expense for the year would equal cash paid for salaries.

The following data is provided: Additional information: Required: Prepare a Statement of Cash Flows,direct method.Include a reconciliation of earnings and net operating cash flow.

XYZ has the following assets: What would be the total cash equivalents at year-end for XYZ?

WXY reported sales revenue of $40,000,and expenses of $35,000 during the period ended December 31,2011.During the year,accounts receivable increased by $1,500; merchandise inventory increased by $1,000; accounts payable increased by $500; dividends payable decreased by $700; and depreciation expense of $2,500 was recorded. Calculate the amount of net cash flow from operating activities.