Exam 16: The Statement of Cash Flows

Felix Company 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: 1)Current assets, other than cash, increased by $24,000 "2)Current liabilities decreased by $1,000 How much is the net cash provided by operating activities?"

While preparing a statement of cash flows using the indirect method, the Depreciation Expense:

Which of the following sections from the statement of cash flows include the cash paid for the purchase of Treasury Stock?

Martin Company is preparing its statement of cash flows using the indirect method. During the year, they sold equipment for $5,990 cash. The net book value of the asset prior to sale was $5,550. Which of the following statements is true?

Operating activities on a statement of cash flows include activities that create revenue or expense in the entity's business.

Christopher Corp. is preparing its statement of cash flows using the indirect method. It provides the following information about transactions for the year: Plant assets, net-beginning balance: $108,000 Plant assets, net-ending balance: $144,000 Equipment costing $62,400 was purchased for cash Equipment with a net asset value of $12,000 was sold for $16,800 Depreciation Expense of $14,400 was recorded during the year What was the amount of net cash provided by (used for)investing activities?

Avatar Company uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ending December 31, 2015: Prepare the operating activities section of the statement of cash flows, using the direct method.

Brown Inc. owed one of its creditors $350,000, but it did not have enough cash to repay the debt. Following lengthy negotiations, the parties agreed that Brown Inc. would issue 50,000 shares of Common Stock to settle the debt. How would this transaction be shown on the statement of cash flows?

Which of the following is true of the statement of cash flows?

Issuing preferred stock to stockholders in exchange for cash would be shown under the financing activities section of the statement of cash flows.

Lewis Inc. 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: Equipment costing $104,000 was purchased for cash. Equipment with a net asset value of $20,000 was sold for $28,000. Depreciation Expense of $24,000 was recorded during the year. With the help of T-account format, analyze the transactions affecting Property, Plant & Equipment, net.

The income statement and a partial balance sheet of Williams Company for the year ended December 31, 2014 is presented below. Prepare the operating activities section of the statement of cash flows using the direct method. Assume the Accrued Liabilities relate to Miscellaneous Operating Expenses. Income Statement

Partisan Services purchased 10 delivery vehicles by issuing a 10-year installment Note Payable for $320,000. This transaction would be shown in the investing activities section of the statement of cash flows.

Arturo Sales purchased some equipment for $12,000 by issuing a 6-month Note Payable. This would appear as a separate schedule of the cash flow statement under a section called non-cash investing and financing activities.

The third section presented on the statement of cash flows is the non-cash operating activities section.

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 following transactions: Issued Common Stock for $28,000 Issued new Long-Term Notes Payable for $34,000 Repaid Long-Term Notes Payable for $40,000 Net Increase (Decrease)in Cash Total

Taylor Company follows the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: Note: Net Income for the year was $89,000. Based on the above information, calculate the dividends declared during the year 2014.

Avatar Company uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ending 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 During 2014, the company repaid $43,000 of Long-Term Notes Payable. During 2014, the company borrowed $34,000 on a new Note Payable There were no stock retirements during the year. There were no sales of Treasury Stock during the year. Prepare a complete statement of cash flows using the direct method. Assume Accrued Liabilities relate to Other Operating Expense

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 following transactions: Purchased Treasury Stock for $3,000 Paid dividends of $10,000 Net Increase (Decrease)in Cash Total

Which of the following would appear on a statement of cash flows prepared using the direct method?