Exam 16: The Statement of Cash Flows

If an investor wants to know how much cash a company can free up for new opportunities, such as expanding into a new sales region, they would most likely wish to calculate the company's free cash flow figure.

Martin Company is preparing its statement of cash flows using the indirect method. During the year, they purchased equipment for $15,000 cash. Which of the following statements is true?

Harrison Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2014: 1)Retained Earnings, beginning balance, $138,000 2)Retained Earnings, ending balance, $125,000 "3)Company reported net loss of $13,000 for the year. What was the amount of dividends declared during the year?"

Which of the following sections of the statement of cash flows include activities that affect Net Income on the income statement? (Assume the indirect method is used.)

Selling property, plant and equipment for $10,000 cash would be considered a cash inflow from investing activities on the statement of cash flows.

Rodriguez Inc. uses the indirect method to prepare the statement of cash flows. Refer to the following income statement: Additional information provided by the company includes the following: Current assets, other than cash, decreased by $5,000 Current liabilities increased by $2,000 How much is the net cash provided by operating activities?

Investors and management use the statement of cash flows to evaluate a firm's profitability.

The only part that differs in a statement of cash flows using the direct method from one using the indirect method is the:

Avatar Company uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: How will the change in Accounts Payable be shown on the statement of cash flows?

Which of the following sections of the statement of cash flows include activities that create revenue and expenses of the business?

The cash paid for the purchase of equipment will typically be shown under the investing activities section of the statement of cash flows.

Which of the following are the three major categories included on the statement of cash flows?

Which of the following is one of the purposes of the statement of cash flows?

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

Which of the following sections of the statement of cash flows are presented differently between the direct method and indirect method?

Which of the following statements accurately describes the statement of cash flows?

Clark Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2015. The beginning balance in the Cash account was $2,500 Net cash provided by operating activities: $39,000 Net cash used for investing activities: $(25,000) Net cash provided by financing activities: $1,200 Which of the following statements is true?

Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record the acquisition of plant assets for $52,000 cash. Net Increase (Decrease)in Cash Total

Perez Company is preparing its statement of cash flows using the indirect method. Refer to the following information: 1)Repayments on Long-Term Notes Payable $58,000 "2)New borrowing on Long-Term Notes Payable $19,000 Which of the following statements is accurate regarding the statement of cash flows?"

The financing activities section of the statement of cash flows includes activities that affect current assets and current liabilities on the balance sheet.