Exam 13: Statement of Cash Flows

A company's inventory account increased $26,500 and its accounts payable account decreased $18,250 during the year.The accounts payable relates only to the acquisition of inventory.Sales were $789,500 and cost of goods sold was $532,700.What was the amount of payments to suppliers of inventory?

The ________ section from the statement of cash flows would include the issuance of a stock dividend.

A company uses the indirect method to prepare the statement of cash flows.It sold a piece of equipment at a loss of $3,600.The equipment was purchased several years ago for $70,500 and had accumulated depreciation of $56,900.What is reported under the operating activities section on the statement of cash flows?

The primary source of cash over the life of a business is ________.

Which of the following would be considered an operating activity on the statement of cash flows?

A company uses the direct method to prepare the statement of cash flows.It presents the following data on its financial statements: *Relates solely to the acquisition of inventory Which of the following is correct about inventory in the operating activities category of the cash flow statement?

When a company uses the direct method to present the statement of cash flows,the payment of cash dividends reduces the amount of net cash provided by operating activities.

A company acquires its own stock to hold as treasury stock.If the company prepares the statement of cash flows using the indirect method or the direct method,where would this transaction appear?

A company uses the indirect method to prepare the statement of cash flows.It presents the following data on its financial statements: *Relates solely to the acquisition of inventory What will appear in the operating activities section related to salary payable?

For each of the following transactions indicate the effect on the cash balance.Use + for increase,- for decrease,and 0 for no effect.

A company pays cash dividends on preferred stock.If the company prepares the statement of cash flows using the indirect method or the direct method,where would this transaction appear?

A cash flow statement shows $25,000 from financing, ($9,200)from investing and $21,000 from operations.The cash balance must have increased or decreased by

The ________ is needed to prepare the statement of cash flows.

On a cash flow statement prepared using the indirect method,which is not reported as an operating activity?

Which of the following is an acceptable basis for the preparation of the statement of cash flows?

A corporation reported net income during the year of $28,500.The following items were reported on the income statement and balance sheet. Compute cash flows from operating activities using the indirect method.

A company purchases land using its common stock.If the company prepares the statement of cash flows using the indirect method or the direct method,where would this transaction appear?

If a company uses the indirect method to prepare the statement of cash flows,how will the adjustment to reflect the amount of cash received from customers be presented on the statement?

The ________ activities section from the statement of cash flows would include the payment of a long-term mortgage payable with cash.

Cash received from providing services would be considered a