Exam 15: Statement of Cash Flows

The income statement of Bingham Inc. for the year ended December 31, 2013, reported the following condensed information: Bingham's balance sheet contained the following comparative data at December 31: Bingham has no depreciable assets. Accounts payable pertains to operating expenses. Require: Prepare the operating activities section of the statement of cash flows using the direct method.

Gingerich Company's comparative balance sheet and income statement for last year appear below: The company declared and paid $42,000 in cash dividends during the year. Required: Using the direct method, prepare each of the following activities sections of the company's statement of cash flows for the year:

Last year Snyder Company reported sales of $125,000 on its income statement. During the year, accounts receivable increased by $30,000 and accounts payable increased by $10,000. 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 statement of cash flows does not report the

Which balance sheet accounts are affected by operating activities?

The following events occurred last year for the Cronin Company: Considering just the above transactions, the net cash flows from financing activities on the statement of cash flows was

Under the indirect method of determining the net cash from operating activities on the statement of cash flows, increases in current assets such as accounts receivable are added to net income.

The statement of cash flow classifies the cash flows into three categories. Describe each of these categories.

Figure 15-1.Master Company's net income last year was $88,000 and cash dividends declared and paid to the company stockholders was $60,000. Changes in selected balance sheet accounts for the year appear below: -Refer to Figure 15-1. The net cash flows from investing activities last year was

The following information is available for the Benning Corporation for the year ended Dec. 31, 2014: In addition, the following information is available from the comparative balance sheet for Benning at the end of 2014 and 2013: Required: Prepare Benning's statement of cash flows for the year ended Dec. 31, 2014, using the indirect method.

Harbor Company reported net income of $60,000 for the year ended December 31, 2014. During the year, inventories decreased by $12,000, accounts payable decreased by $18,000, depreciation expense was $20,000 and a gain on disposal of equipment of $9,000 was recorded. Net cash provided by operating activities in 2014 using the indirect method was

Use the following major cash flow activities to classify the activities listed below: -Collection of Sales Revenue

Best Wishes Company had the following information for the year ended December 31, 2011: Additional information: a. Accounts receivable increased by $12,000. b. Inventories increased by $28,000. c. Prepaid expenses increased by $1,200. d. Accounts payable to merchandise suppliers increased by $19,000. e. Accrued expenses payable increased by $9,000. Required: Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2013, for Best Wishes Company, using the direct method.

In calculating net cash from operating activities using the indirect method, depreciation expense is

Use the following selected data and additional information to answer the questions that follow: Balance Sheet Data 2014 2013 Accounts receivable \ 36,000 \ 42,000 Inventories 28,000 25,000 Accounts payable 31,000 35,000 Salaries payable 2,000 1,000 Equipment 60,000 40,000 Accumulated depreciation 12,000 16,000 Bonds payable 50,000 100,000 Common stock 150,000 100,000 Retained earnings 38,000 20,000 Additional information:

Determining the cash flows from operating activities generally requires analyzing each item on the income statement as well as the current asset and current liability accounts.

When preparing a statement of cash flows using the indirect method, why is depreciation added back to net income within the operating activities section?

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 financing activities to be reported in a statement of cash flows is

Use the following major cash flow activities to classify the activities listed below: -Land is exchanged for common stock

Freeport Company's income statement for last year appears below: The beginning and ending balances for last year are available for the following accounts: Required: Using the direct method, prepare the operating activities section of the statement of cash flows.