Exam 13: Statement of Cash Flows

Buying and selling property, plant and equipment would be considered in

The ending cash balance reported on the statement of cash flows will depend on whether the company uses the direct or indirect method of reporting operating activities.

For each of the following transactions, indicate the section in which it may be included. Use O for the operating section, I for the investing activities section, and F for the financing section of the Statement of Cash Flows. ________ a. Payment of dividends ________ b. Issuance of stock ________ c. Payment of salaries ________ d. Cash purchase of equipment ________ e. Payment of accounts payable ________ f. Payment of interest on long-term debt ________ g. Receipt of cash dividends ________ h. Increase in accounts receivable ________ i. Cash sale of building ________ j. Gain on sale of land

Use the indirect method of preparing a statement of cash flows to answer the question. Ending balances for Sunday Hut are listed below: Net income for this year was $97,000 and dividends of $24,000 were declared and paid during this year. What was the net cash provided by financing activities?

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

The balance sheet for Bostick Corporation follows: Operating income during the period was $13,650, while cash dividends paid were $3,770. The total sources of cash at Bostick Corporation during the year was

Which of the following is reported as an operating activity on a cash flow statement prepared using the indirect method?

The three sections of the Statement of Cash Flows are operating activities, investing activities, and capital activities.

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

The only difference in a statement of cash flows prepared under the direct method as opposed to the indirect method is the presentation of operating activities.

When a company uses the indirect method to present the statement of cash flows, depreciation expense must be subtracted from net income to reconcile to net cash provided by operating activities.

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

The only difference in a statement of cash flows prepared under the direct method as opposed to the indirect method is the presentation of financing activities.