Exam 13: Statement of Cash Flows

When using the indirect method in the statement of cash flows, the company would add the net change in a current liability account if the balance increased over time.

Which of the activities sections of the statement of cash flows would include a loss of $20,000 from the sale of equipment?

The ________ reports an entity's cash receipts and cash payments during the period.

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

Money borrowed for a mortgage would be a(n)________ activity.

A company uses the indirect method to prepare the statement of cash flows. How will a loss from the sale of a building be presented on the statement?

If a company uses the indirect method to prepare the statement of cash flows, how will the adjustment to reflect the amount of cash received from customers be presented on the statement?

All of the following would be done when calculating the change in cash from operating activities under the indirect method except

A corporation reported net income during the year of $28,500. The following items were reported on the income statement and balance sheet. Compute cash flows from operating activities using the indirect method.

The direct method of presenting the financing activities section of the statement of cash flows reconciles net income to net cash provided by financing activities.

Computing cash generated from operating activities is

A company uses the indirect method to prepare the statement of cash flows. It presents the following data on its financial statements: *Relates solely to the acquisition of inventory What will appear in the operating activities section related to accounts payable?

Which of the following is an acceptable basis for the preparation of the statement of cash flows?

List three ways that owners and investors use the statement of cash flows.

For each of the following transactions indicate the effect on the cash balance. Use + for increase, - for decrease, and 0 for no effect. ________ a. Payment of cash dividends ________ b. Payment of interest ________ c. Sale of treasury stock ________ d. Conversion of debt to common stock ________ e. Payment of accounts payable ________ f. Payment of salaries ________ g. Receipt of cash dividends ________ h. Sale of merchandise for cash ________ i. Acquisition of a patent by issuing common stock ________ j. Purchase of land ________ k. Receipt of stock dividends

For purposes of the statement of cash flows, "cash" includes cash on hand, cash in the bank and cash equivalents.

The following data relate to Sorrentino Corporation for last year: What is the net cash provided by operating activities for last year on the statement of cash flows for Sorrentino Corporation?

Identify and describe the three sections of the statement of cash flows.

A company reported beginning plant assets, net of depreciation, of $734,550; and, an ending amount of $658,000. Depreciation expense of $50,400 and a loss on the sale of equipment of $5600 were reported on the income statement. The company acquired $215,800 of plant assets during the year. How much will be reported as cash received from the sale of equipment in the investing activities section of the statement of cash flows?

If a company uses the indirect method to prepare the statement of cash flows, how will the adjustment to reflect the amount of cash paid for interest be presented on the statement of cash flows?