Exam 11: The Statement of Cash Flows

The cash flow statement and Balance Sheet use accrual accounting.

When preparing the Statement of Cash Flows by the indirect method,if current liabilities increase,the difference is:

An increase in long-term Mortgage Payable would mean a(n):

Acquisitions and sales of long-term assets belong in the financing section of a cash flow statement using the indirect method.

Dividends received by a company appear in the operating activities section of a direct method cash flow statement.

One formula for determining cash collections from customers is to take Sales plus the increase in Accounts Receivable.

A company settles a long-term note payable plus interest by paying $68,000 cash toward the principal amount and $5,440 cash for the interest.Under the direct method of reporting interest,the $5,440 would be listed as a(n):

The Accounts Payable balance has decreased during the year.How would this affect the Statement of Cash Flows operations section under the indirect method?

Are all decreases to cash the result of an unfavorable situation?

Free cash flow is the anticipated amount of cash available from operations after paying for planned financing of stock and paying dividends.

Are all increases to cash from financing activities the result of a favorable situation?

Under the indirect method of cash flow,which of the following adjustments would NOT be made to net income when computing cash from operating activities?

Operating expenses other than depreciation for the year were $400,000.Accrued expenses increased by $35,000.Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be:

On its Statement of Cash Flows,Aspen,Inc.reported cash flow from operating activities of $98,000,cash flow from financing activities of ($127,000),and cash flow from investing activities of $104,000.Aspen,Inc.invested $63,000 cash in long-term assets.Aspen,Inc.'s free cash flow is:

The Bobblehead Company has an Accounts Receivable turnover of 36 days,an inventory turnover of 77 days and an Accounts Payable turnover of 40 days.Bobblehead's cash conversion cycle is:

In the indirect method of Cash Flows,which of the following would be added to net income?

An example of a cash outflow from financing activities is:

The purpose of the Statement of Cash Flows is to show:

Investing Cash Flows affect:

The Supplies balance has decreased during the year.How would this affect the Statement of Cash Flows operations section under the indirect method?