Exam 14: Statement of Cash Flows

Krech Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities. -Which of the following is correct regarding the operating activities section of the statement of cash flows?

Collecting the principal on a loan to another company would be reported on the investing activities section of the statement of cash flows.

The ending and beginning balances of Farmer Corporation's balance sheet accounts for the most recent year are listed below: The company's net income (loss)for the year was $0 and its cash dividends were $4,000.It did not dispose of any property,plant,and equipment,retire any bonds payable,or repurchase any of its own common stock during the year. Required: Compute the change in each balance sheet account in the below table.Indicate whether the change in each balance will be recorded in the operating,investing,or financing activities section of the statement of cash flows.For items recorded in the operating activities section,also indicate whether the change will be added to or subtracted from net income.For all other items,indicate whether the change will be added as a cash inflow or subtracted as a cash outflow.The first entry has been filled in as an example.

Buckley Corporation's most recent comparative balance sheet appears below: The company's net income for the year was $91 and it paid a cash dividend of $22. It did not dispose of any property, plant, and equipment during the year. The company did not retire any bonds payable or repurchase any of its own common stock. -The net cash provided by (used in)financing activities for the year was:

Buying property,plant,or equipment would be reported as a cash outflow on the investing activities section of the statement of cash flows.

Excerpts from Deblois Corporation's comparative balance sheet appear below: Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?

Burns Corporation's net income last year was $91,000.Changes in the company's balance sheet accounts for the year appear below: The company did not dispose of any property,plant,and equipment,sell any long-term investments,issue any bonds payable,or repurchase any of its own common stock during the year.The company declared and paid a cash dividend of $4,000. Required: a.Construct in good form the operating activities section of the company's statement of cash flows for the year.(Use the indirect method.) b.Construct in good form the investing activities section of the company's statement of cash flows for the year. c.Construct in good form the financing activities section of the company's statement of cash flows for the year.

Hirshberg Corporation's comparative balance sheet appears below: The company's net income for the year was $11,000 and its cash dividends were $4,000. It did not sell or retire any property, plant, and equipment during the year. -The company's net cash provided by (used in)operating activities is:

Thunder Corporation's balance sheet and income statement appear below: The company did not dispose of any property,plant,and equipment,issue any bonds payable,or repurchase any of its own common stock during the year.The company declared and paid a cash dividend of $24. Required: Prepare a statement of cash flows in good form using the indirect method.

Krech Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities. -Which of the following is correct regarding the operating activities section of the statement of cash flows?

Birchett Corporation's most recent balance sheet appears below: The company's net income for the year was $91 and it did not sell or retire any property,plant,and equipment during the year.Cash dividends were $22.The net cash provided by (used in)operating activities for the year was:

Mattix Corporation's balance sheet and income statement appear below: The company sold equipment for $20 that was originally purchased for $7 and that had accumulated depreciation of $1.It paid a cash dividend during the year and did not issue any bonds payable or repurchase any of its own common stock. Required: Determine the net cash provided by (used in)operating activities for the year using the indirect method.

Which of the following items would not be classified as an operating activity on the statement of cash flows?

Morbeck Corporation's net income last year was $56,000.The company paid a cash dividend of $31,000 and did not sell or retire any property,plant,and equipment last year.Changes in selected balance sheet accounts for the year appear below: Based solely on this information,the net cash provided by (used in)operating activities under the indirect method on the statement of cash flows would be:

Alcoser Corporation's most recent balance sheet appears below: Net income for the year was $60. Cash dividends were $12. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. -The net cash provided by (used in)financing activities for the year was:

Sonier Corporation's most recent balance sheet appears below: The net income for the year was $97.Cash dividends were $19.The company did not issue any bonds or repurchase any of its common stock during the year.The net cash provided by (used in)financing activities for the year was:

Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows,an increase in property,plant,and equipment is subtracted from net income.

Cash equivalents on the statement of cash flows consist of any investment that can be converted into cash within one year.

Which of the following would be added to net income in the operating activities section of a statement of cash flows prepared using the indirect method?

The following transactions occurred last year at Jogger Corporation: Based solely on the above information,the net cash provided by (used in)financing activities for the year on the statement of cash flows would be: