Exam 11: The Statement of Cash Flows

Goldman Company's Accounts Receivable decreased by $25,000 and its Accounts Payable increased by $12,000.What is the net effect on cash from operations under the indirect method?

From the Income Statement and Balance Sheet information listed below,what amount of cash was paid for salaries and wages during 2012?

The investing and financing sections of the Statement of Cash Flows is the same for the indirect and direct method.

The Statement of Cash Flows reports the sources and uses of cash from all of the following EXCEPT:

Bach Company sold an asset with a book value of $56,000 for $100,000 cash.Which of the following is a TRUE statement?

Payments to suppliers include items such as employee compensation,interest and income taxes.

As you approach graduation,you are evaluating your job offers from the following companies.Assuming that all other factors are equal (pay,benefits,location,job duties,industry,company size,company age etc. ),for which of the following companies would you chose to work and why?

In the direct method of preparing a cash flow statement,interest received and interest expense are reported in the financing activities section.

Generally,the higher the cash conversion cycle,the healthier the company is financially.

Which would be added back to net income in the operating section of an indirect cash flow statement?

Activities that increase and decrease as a result of selling a company's stock are:

Cost of goods sold for the year was $850,000.Inventory was $60,000 at the beginning of the year and $90,000 at the end of the year.There were no changes in the amount in account payable for the year.Cash payment for merchandise to be reported under the direct method is:

The Cash Flows from operations arrived at using the indirect method is different than that arrived at using the direct method.

The cash flow statement is the communicating link between the:

Under the direct method,amortization expense is added to net income.

The following information is available for Allsport Company.What amount was paid for merchandise during the current year (2012)?

Operating Cash Flows under the indirect method starts with the net income for the period from the Income Statement.

Twin Peaks Industries has an inventory turnover of 112 days,an Accounts Payable turnover of 73 days and an Accounts Receivable turnover of 82 days.Twin Peaks' cash conversion cycle is:

Losses on the sale of long-term assets are:

Gains on the sale of long-term assets are: