Exam 16: The Statement of Cash Flows

The payment of interest on a loan would be considered a ________ on the statement of cash flows (direct method).

Martinez Company uses the direct method to prepare its statement of cash flows. It has reported Sales Revenues of $200,000 on its income statement for the year 2015. If the balance in Accounts Receivable has gone up by $10,000 during the year, then $10,000 will have to be added to $200,000 to calculate collections from customers.

Lopez Corp. uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2014: 1)Long-Term Notes Payable, beginning balance, $80,000 2)Long-Term Notes Payable, ending balance, $76,000 3)Common Stock, beginning balance, $3,000 4)Common Stock, ending balance, $26,000 5)Retained Earnings, beginning balance, $75,000 6)Retained Earnings, ending balance, $115,000 7)Treasury Stock, beginning balance, $6,000 8)Treasury Stock, ending balance, $10,000 9)No stock was retired. 10)No treasury stock was sold. 11)During 2014, the company repaid $36,000 of Long-Term Notes Payable. 12)During 2014, the company borrowed $32,000 on a new Note Payable. 13)Net income for the year was $49,000. "14)Assume all dividends declared during the year were paid. How much was the net cash flow from financing activities?"

The contribution of equipment by a stockholder in exchange for common stock is an example of:

The cash flow from investing activities section appears exactly the same, whether the company uses the direct or the indirect method to prepare 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. Net cash provided by operating activities: $39,000 Net cash used for investing activities: $(25,000) Net cash provided by financing activities: $1,200 How much was the net change in cash during the year?

Transnational Company is looking for additional capital in order to purchase a property to build their headquarters. They found an investor who was willing to sell them land worth $500,000 in exchange for stock in the company. This transaction would be shown in the financing activities section of the statement of cash flows.

The net cash flow from operating activities is calculated in the same way, whether the company uses the direct or the indirect method of preparing the statement of cash flow. The only difference in the two methods is the way the financing activities section is prepared.

Qtopia Company uses the direct method to prepare its statement of cash flows. It has reported Operating Expenses of $63,000 on its income statement for the year 2014. If the balance in Accrued Liabilities has gone up by $6,000 during the year, then $6,000 will have to be added to $63,000 as part of the process to calculate payments to suppliers for operating expenses.

Avatar Company uses the indirect method to prepare its statement of cash flows. Refer to the partially completed worksheet below. Complete the worksheet, including the data showing the net change in cash, plus all control totals. Net Increase (Decrease)in Cash Total

Allen Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: If the net income for the year was $58,000, the company must have declared $32,000 as dividends during the year.

Which of the following will appear in the operating section of the statement of cash flows prepared using the indirect method?

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

Taylor Company uses 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 $56,000. Which of the following statements is true of Taylor's statement of cash flows for the year 2014?