Exam 15: Statement of Cash Flows

The following items were reported on the balance sheets and income statement for Collin Inc.: How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows using the indirect method?

Which one of the following items is not necessary in preparing a statement of cash flows?

For a statement of cash flows, firms are required to classify their cash activities into three categories: operating, investing, and borrowing.

Use the following major cash flow activities to classify the activities listed below: -Payment of Operating Expenses

There are five basic steps that are followed in preparing a statement of cash flows. List the five steps and briefly describe what takes place in each step.

If a gain of $30,000 is incurred in selling (for cash) long-term investments having a book value of $180,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

The income statement of Stuart Company is shown below: Additional information: Required: Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2013, for Stuart Company, using the direct method.

The activity from the balance sheet to be presented in the financing activities section of the statement of cash flows is based on an analysis of stockholders' equity only.

The indirect method and the direct method differ only on how the cash flows from ________________ are calculated.

If a loss of $9,200 is incurred in selling (for cash) a patent having a book value of $80,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

The __________________ computes operating cash flows by adjusting each line on the income statement to reflect cash flows.

Cash flows from acquiring and retiring long-term debt are classified as

Activities that decrease cash are uses of cash and are referred to as ___________.

Financing activities involve

Last year Lawson Company reported sales of $150,000 on its income statement. During the year, accounts receivable decreased by $15,000 and accounts payable decreased by $35,000. The company uses the direct method to determine the net cash flows from operating activities on the statement of cash flows. The sales revenue adjusted to a cash basis would be

The acquisition of land by issuing common stock is

Black Company's net income last year was $84,000. Changes in the company's balance sheet accounts for the year appear below: The company declared and paid cash dividends of $59,000 last year. Required:

Under the indirect method, the net cash flow from operating activities is computed by adjusting net income to remove the effect of all deferrals of past operating cash receipts and payments, and all accruals of future operating cash receipts or payments.

Worksheets offer increased ____________ in form and the added convenience of spreadsheet software packages.

If accounts receivable have increased during the period,