Exam 15: Statement of Cash Flows

Last year Maine Company reported cost of goods sold of $110,000. Inventories increased by $30,000 during the year, and accounts payable decreased by $15,000. The company uses the direct method to determine the net cash flows from operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method. -Decrease in accounts payable during a period.

Stillwater Inc. reported the following information for 2013 and 2014: If Stillwater Inc. uses the indirect method to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash flows from operating activities for 2014?

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method. -Loss on sale of land.

Using the indirect method, calculate the amount of net cash flows from operating activities from the following data: 2014 2013 Net Income \ 250,000 Accounts receivable 22,000 25,000 Prepaid expenses 3,000 5,000 Accounts payable 14,000 15,000 Depreciation expense 51,000 Amortization expense (Patent) 4,000 Dividends declared and paid 11,000