Exam 15: Statement of Cash Flows

The amount for "net cash from operating activities" will be different depending on if the direct method or the indirect method is used to construct the statement of cash flows.

A decrease in accounts payable is added to net income in the operating activities section of the statement of cash flows prepared under the indirect method.

Activities that increase cash are sources of cash and are referred to as ___________.

The following items were reported on the balance sheets and income statements of Marshall Company: How would the change in accounts payable be reported in the operating activities section of the statement of cash flows under the indirect method?

Using the indirect method, if equipment is sold at a gain, the

Use the following major cash flow activities to classify the activities listed below: -Purchased land for cash

Jamestown Inc. reported the following information for 2013 and 2014: 2013 2014 Cash \ 42,000 \ 49,000 Noncash current assets 162,000 175,000 Cash flows from financing activities 313,000 Cash flows from operating activities 72,000 What was the amount of net cash flows from investing activities for 2014?

The issuance of common stock in exchange for a building would appear both as a cash inflow in the financing activities section of the cash flow statement and also as a cash outflow in the investing activities section.

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. -Issuance of common stock for cash.

Smith and Company reported net income for the current year. Which of the following business transactions would cause cash from operating activities to be higher than the amount of net income?

All SEC-registered firms must issue a statement of cash flows, in addition to the income statement and balance sheet.

Accounts receivable arising from sales to customers amounted to $62,000 and $40,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $215,000. Exclusive of the effect of other adjustments, the cash inflows from operating activities to be reported on the statement of cash flows are

Last year Sheeder Company's cash account decreased by $10,000. Net cash flows from investing activities were $19,000. Net cash flows from financing activities were $(17,000). On the statement of cash flows, the net cash flows from operating activities were

Which one of the following affects cash during a period?

The order of presentation of activities on the statement of cash flows is

Use the following major cash flow activities to classify the activities listed below: -Reported profitable operations (Net Income)

The net income reported on the income statement for the current year was $79,000. Depreciation was $6,000. Account receivable and inventories decreased by $1,100 and $2,700, respectively. Prepaid expenses and accounts payable increased, respectively, by $950 and $3,000. How much cash was provided by operating activities?

The Laurel Company reported the following data for last year: Based solely on this information, the net cash flows from financing activities on the statement of cash flows would be

Figure 15-2.Chandler Company's net income last year was $98,000 and cash dividends declared and paid to the company stockholders was $13,000. Changes in selected balance sheet accounts for the year appear below: -Refer to Figure 15-2. The net cash flows from operating activities to be reported in a statement of cash flows is

Upon review of Susan's Statement of Cash Flows, the following was noted: From this information, the most likely explanation is that Susan is