Starfire Company uses the indirect method to prepare the statement of cash flows. Please refer to the following income statement: \[\begin{array} { | l | r | r | } \hline \text { Sales revenue } & \$ 140,000 & \\ \hline \text { Interest revenue } & 5,000 & \\ \hline \text { Loss on sale of plant assets } & ( 4,000 ) & \\ \hline \text { Total revenues and (losses) } & & \$ 141,000 \\ \hline \text { Cost of goods sold } & 100,000 & \\ \hline \text { Salary expense } & 23,000 & \\ \hline \text { Depreciation expense } & 8,000 & \\ \hline \text { Other operating expenses } & 9,000 & \\ \hline \text { Interest expense } & 2,000 & \\ \hline \text { Income tax expense } & 5,000 & \\ \hline \text { Total expenses } & & \$ 147,000 \\ \hline \text { Net income/(loss) } & & \$ ( 6,000 ) \\ \hline \end{array}\] Other information provided: • Current assets other than cash decrease by $4,000. • Current liabilities increase by $1,000. - Please prepare the operating activities section of the statement of cash flows using the following format: \[\begin{array} { | l | l | l | } \hline \text { Operating activities: } &\quad\quad & \quad\quad\\ \hline \text { Net income } & & \\ \hline \text { Adjustments } & & \\ \hline \text { Depreciation expense } & & \\ \hline \text { Gain or loss on sale } & & \\ \hline \text { Increase/decrease in current assets } & & \\ \hline \text { Increase/decrease in current liabilities } & & \\ \hline \text { Net cash from operating activities } & & \\ \hline \end{array}\]

\[\begin{array} { | l | r | r | } \hlin

Avatar Company uses the indirect method to prepare the statement of cash flows. Please refer to the following section of the comparative balance sheet: \[\begin{array} { | l | r | r | r | } \hline&2014 & 2013 & \text { Increase/decrease }\\ \hline \text { Cash } & \$ 33,000 & \$ 18,000 & \$ 15,000 \\ \hline \text { Accounts receivable } & 22,000 & 35,000 & ( 13,000) \\ \hline \text { Inventory } & 170,000 & 115,000 & 55,000 \\ \hline \text { Total assets } & \$ 225,000 & \$ 168,000 & \$ 57,000 \\ \hline \end{array}\] - How will the change in Accounts receivable be shown on the statement of cash flows?

A) Operating activities minus positive cash flow B) Operating activities minus negative cash flow C) Financing activities minus positive cash flow D) Investing activities minus negative cash flow A) Operating activities minus positive cash flow B) Operating activities minus negative cash flow C) Financing activities minus positive cash flow D) Investing activities minus negative cash flow

Exam 14: The Statement of Cash Flows

Starfire Company uses the indirect method to prepare the statement of cash flows. Please refer to the following income statement: Sales revenue \ 140,000 Interest revenue 5,000 Loss on sale of plant assets (4,000) Total revenues and (losses) \ 141,000 Cost of goods sold 100,000 Salary expense 23,000 Depreciation expense 8,000 Other operating expenses 9,000 Interest expense 2,000 Income tax expense 5,000 Total expenses \ 147,000 Net income/(loss) \ (6,000) Other information provided: • Current assets other than cash decrease by $4,000. • Current liabilities increase by $1,000. - Please prepare the operating activities section of the statement of cash flows using the following format: Operating activities: Net income Adjustments Depreciation expense Gain or loss on sale Increase/decrease in current assets Increase/decrease in current liabilities Net cash from operating activities

(Essay)

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Question 41

The financing section of the statement of cash flows reflects transactions in the equity accounts and the long-term liability accounts.

(True/False)

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Question 42

Companies sometimes make investments that do NOT require cash. Such transactions are called noncash investing activities and appear in a separate section of the cash flow statement.

(True/False)

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Question 43

Avatar Company uses the indirect method to prepare the statement of cash flows. Please refer to the following section of the comparative balance sheet: 2014 2013 Increase/decrease Cash \ 33,000 \ 18,000 \ 15,000 Accounts receivable 22,000 35,000 (13,000) Inventory 170,000 115,000 55,000 Total assets \ 225,000 \ 168,000 \ 57,000 - How will the change in Accounts receivable be shown on the statement of cash flows?

(Multiple Choice)

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Question 44

Which of the following sections from the statement of cash flows includes borrowing money and paying off loans?

(Multiple Choice)

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Question 45

The financing section of the statement of cash flows reflects transactions in the equity accounts only.

(True/False)

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Question 46

Issuing preferred stock to stockholders would be a financing activity.

(True/False)

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Question 47

Free cash flow is equal to the cash flow from operating activities less cash payments:

(Multiple Choice)

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Question 48

Which of the following sections from the statement of cash flows includes activities that increase and decrease long-term assets?

(Multiple Choice)

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Question 49

Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, please enter the adjustments needed to record depreciation expense for the year of 2014 of $12,000.

(Essay)

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Question 50

Which of the following sections from the statement of cash flows includes the purchase and sale of treasury stock?

(Multiple Choice)

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Question 51

Which would NOT be included in the operating activities section of a direct method statement of cash flow?

(Multiple Choice)

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Question 52

Which of the following statements about the statement of cash flows is FALSE?

(Multiple Choice)

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Question 53

In creating a statement of cash flows using the indirect method, which of the following statements is TRUE about depreciation expense?

(Multiple Choice)

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Question 54

How would a new issue of common stock be shown on the statement of cash flows?

(Multiple Choice)

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Question 55

Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, please enter the adjustments needed to record the increases and decreases in current assets (other than cash) and current liabilities.

(Essay)

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Question 56

Which of the following sections from the statement of cash flows includes activities that affect current assets and current liabilities on the balance sheet?

(Multiple Choice)

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Question 57

Selling property, plant and equipment would be considered a cash inflow from investing.

(True/False)

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Question 58

Which of the following describes the financing activities as shown in the statement of cash flows?

(Multiple Choice)

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Question 59

Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following financial statement information for the year 2014: $Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following financial statement information for the year 2014: - Please prepare the operating activities section of the statement of cash flows, using the direct method. Please use the following format: \begin{array} { | l | l | l | } \hline \text { Operating activities: } &\quad\quad &\quad\quad \\ \hline \text { Receipts } & & \\ \hline \text { Collections from customers } & & \\ \hline \text { Interest received } & & \\ \hline \text { Total cash receipts } & & \\ \hline \text { Payments } & & \\ \hline \text { To suppliers } & & \\ \hline \text { To employees } & & \\ \hline \text { For interest } & & \\ \hline \text { For income tax } & & \\ \hline \text { Total cash payments } & & \\ \hline \text { Net cash from operating activities } & \\ \hline \end{array}$ - Please prepare the operating activities section of the statement of cash flows, using the direct method. Please use the following format: Operating activities: Receipts Collections from customers Interest received Total cash receipts Payments To suppliers To employees For interest For income tax Total cash payments Net cash from operating activities

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Question 60

Showing 41 - 60 of 157

The financing section of the statement of cash flows reflects transactions in the equity accounts and the long-term liability accounts.

Companies sometimes make investments that do NOT require cash. Such transactions are called noncash investing activities and appear in a separate section of the cash flow statement.

Which of the following sections from the statement of cash flows includes borrowing money and paying off loans?

The financing section of the statement of cash flows reflects transactions in the equity accounts only.

Issuing preferred stock to stockholders would be a financing activity.

Free cash flow is equal to the cash flow from operating activities less cash payments:

Which of the following sections from the statement of cash flows includes activities that increase and decrease long-term assets?

Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, please enter the adjustments needed to record depreciation expense for the year of 2014 of $12,000.

Which of the following sections from the statement of cash flows includes the purchase and sale of treasury stock?

Which would NOT be included in the operating activities section of a direct method statement of cash flow?

Which of the following statements about the statement of cash flows is FALSE?

In creating a statement of cash flows using the indirect method, which of the following statements is TRUE about depreciation expense?

How would a new issue of common stock be shown on the statement of cash flows?

Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, please enter the adjustments needed to record the increases and decreases in current assets (other than cash) and current liabilities.

Which of the following sections from the statement of cash flows includes activities that affect current assets and current liabilities on the balance sheet?

Selling property, plant and equipment would be considered a cash inflow from investing.

Which of the following describes the financing activities as shown in the statement of cash flows?

Corporations: Paid-In Capital and the Balance Sheet

Corporations: Effects on Retained Earnings and the Income Statement

Financial Statement Analysis

Introduction to Management Accounting

Job Order and Process Costing

Activity-Based Costing and Other Cost Management Tools

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

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