Exam 11: The Statement of Cash Flows

Beginning equipment minus equipment sold and minus ending equipment equals ____________________.

"You Decide" Essay You are the Controller for McBride & Associates. Your accounting intern from the local university has been assigned the task of preparing your company's statement of cash flows. The intern has come to you with a question. She is not sure how to report some dividends the company had received during the year. She explains that on first thought, it seems like dividends represent a financing activity since they are related to shares of stock that companies issue to finance their businesses. But she is having second thoughts. Explain to your intern how dividends (both received and paid)should be classified on the cash flow statement.

Selected information from the company's financial records is presented below: During 2014, the company sold equipment with a cost of $50,000 and accumulated depreciation of $30,000. A gain of $10,000 was recognized on the sale of the equipment. This was the only equipment sale during the year. -Refer to Memorial Corporation. Assume that there were no retained earnings transactions other than those dealing with dividends and net income. Dividends declared during 2014 totaled

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

Selected information from the company's financial records is presented below: During 2014, the company sold equipment with a cost of $50,000 and accumulated depreciation of $30,000. A gain of $10,000 was recognized on the sale of the equipment. This was the only equipment sale during the year. -Refer to Metalcrafts, Inc. Assume that all purchases of equipment were paid with cash. How much cash was paid to purchase equipment during 2014?

On December 31, 2014, a restaurant purchased a $19,000 truck to be used for catering. It made a down payment of one-fourth of the purchase price. What combination of amounts would affect the 2014 income statement and statement of cash flows for the purchase of the truck? Statement of Cash Flow Income Statement

Use the following codes to indicate how the cash flow effect, if any, of each transaction or event would be reported on a statement of cash flows if the operating activities section is prepared using the indirect method. (Choices may be used more than once.) a.Operating activity--add to net income b.Operating activity--deduct from net income c.Inflow from investing activity d.Outflow from investing activity e.Inflow from financing activity f.Outflow from financing activity g.Noncash investing and financing activity h.Not reported on statement of cash flows -Recorded depreciation expenses for the year.

Selected data and additional information from the company's records are presented below: Additional information: -Refer to Mary Kay Cosmetics. What amount was paid to acquire equipment during 2014?

Match these terms with their correct definition. a.Cash flow adequacy ratio b.Cash flows from financing activities c.Cash flows from investing activities d.Cash flow from operating activities e.Direct method f.Free cash flow g.Income statement h.Indirect method i.Noncash investing & financing activities j.Statement of cash flows -Measures the company's ability to meet its maturing debt obligations

Unlike the income statement, no financial ratios are reported on the statement of cash flows.

Operating activities involve the acquiring and selling of goods and services for cash or on account.

When using the indirect method to determine operating cash flows, how is the decrease in accounts payable shown on the Statement of Cash Flows?

The following information was reported by a catering company: What amount would be reported in the operating activities section of the statement of cash flows for Payments for Operating Expenses under the direct method?

A company reported the following information: How much cash was received for interest during 2014?

Which of the following statements is not true? The information in the statement of cash flows helps investors, creditors and others

Cash flows from borrowing and paying off a 90-day bank loan are classified as

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.

Selected information from the company's financial records is presented below: During 2014, the company sold equipment with a cost of $50,000 and accumulated depreciation of $30,000. A gain of $10,000 was recognized on the sale of the equipment. This was the only equipment sale during the year. -Refer to Memorial Corporation. How much cash was paid for dividends during 2014?

Selected data and additional information from the company's records are presented below: Additional information: -Refer to Mary Kay Cosmetics. Prepare the operating activities section of the statement of cash flows for 2014 assuming the direct method is used to determine net cash flow from operating activities.

Selected data and additional information from the company's records are presented below: Additional information: -Selected data from the financial statements of Mars & Venus Counseling Center for the years ended December 31, 2014 and 2013, are presented below: What is the amount of cash and cash equivalents at the end of 2014?