Exam 16: The Statement of Cash Flows

Avatar Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for the year 2015: 1)Sales Revenue, $515,000 2)Accounts Receivable, beginning balance, $92,000 "3)Accounts Receivable, ending balance, $57,000 In the operating activities section of the statement of cash flows, what amount will be shown for collections from customers?"

Wellington Company uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ended December 31, 2015: On Wellington's statement of cash flows, using the direct method, what amount will be shown for payments to employees? Assume Accrued Liabilities relate to Other Operating Expense.

Walker Inc. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: The change in Accounts Receivable will be shown as a negative cash flow in the adjustments to Net Income.

Jelly Bean Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: Note:1)There were no stock retirements during the year. "2)There were no sales of treasury stock during the year. Which of the following statements would be true?"

Which of the following is a cash outflow for a financing activity on the statement of cash flows?

A debtor of Adams Company owes $500,000 but does not have enough cash to repay the debt. Following lengthy negotiations, the parties agreed that the debtor will issue 200,000 shares of Common Stock to settle the debt. This transaction will be reported in the investing activities section of the statement of cash flows for Adams Company.

Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2014: From the income statement: Sales Revenues, $265,000 Cost of Goods Sold, $210,000 Operating expenses, $31,000 Net Income $24, From the balance sheet: Assume that there were no sales of long-term assets, no Interest Revenue, and no expenses other than the expenses shown above. Also, assume that Accounts Payable are for purchases of inventory only. On the statement of cash flows, what amount will be shown for the net cash flow from operating activities?

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 increases and decreases in current assets (other than cash)and current liabilities. Net Increase (Decrease)in Cash Total

Cash borrowed on a mortgage note would be a(n)________ activity on the statement of cash flows.

Interest Expense paid on a Note Payable would be included in the operating activities section of the statement of cash flows.

Qtopia Company uses the direct method to prepare its statement of cash flows. It has reported Cost of Goods Sold of $85,000 on its income statement for the year 2015. If the balance in Accounts Payable, for inventory suppliers only, has gone down by $8,000 during the year, then $8,000 will have to be subtracted from $85,000 as part of the process to calculate payments to suppliers for inventory purchases.

Refer to the following information of Harris Inc. Net Cash from operating activities, $25,000 Net Cash from financing activities, $35,000 Net Cash used in investing activities, apart from investment in Long-Term Assets, $12,000. Net Cash used in investing activities, ($20,000) Investment in Long-Term Assets, $12,000 Cash dividend paid $10,000. Calculate free cash flow of Harris Inc.

Gladiator Inc. uses the direct method to prepare its statement of cash flows. Refer to the following information reported for the year 2014: Cost of Goods Sold, $130,000 Inventory, beginning balance, $25,000 Inventory, ending balance, $65,000 Accounts Payable, beginning balance, $7,500 Accounts Payable, ending balance, $4,900 What is the amount of cash paid for merchandise inventory?

Allen Company uses the indirect method to prepare its statement of cash flows. The Treasury Stock account had a debit balance of $9,000 at the beginning of the year, and a debit balance of $13,000 at the end of the year. No Treasury Stock was sold during the year. The financing section of the statement of cash flows will show a positive cash flow of $4,000 for the buyback of Treasury Stock.

Fashion Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: Additional information provided by the company includes the following: During 2014, the company repaid $60,000 of Long-Term Notes Payable. During 2014, the company borrowed $51,000 on a new Long-Term Note Payable. With the help of T-account format, analyze the transactions affecting the Long-Term Notes Payable account.

Which of the following transactions would be shown in the non-cash investing and financing activities section of the statement of cash flows?

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

Avatar Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2015: Net cash provided by operating activities: $102,000 Net cash used in investing activities: $(113,500) Net cash provided by financing activities: $15,000 If the cash balance at the beginning of the year was $13,000, what would be the ending cash balance?

Samuel Corp. has provided the following information for the year ended December 31, 2015. Additional information provided by the company includes the following: Equipment costing $60,000 was purchased for cash. Equipment with a net asset value of $10,000 was sold for $16,000. Depreciation Expense of $16,000 was recorded during the year. During 2014, the company repaid $43,000 of Long-Term Notes Payable. During 2014, the company borrowed $34,000 on a new Long-Term Note Payable There were no stock retirements during the year. There were no sales of treasury stock during the year. All sales are on credit. Prepare a complete statement of cash flows using the indirect method.

Allen Services purchased 20 delivery vehicles by issuing a 20-year installment Note Payable for $720,000. How would this transaction be shown on the statement of cash flows?