Exam 13: Statement of Cash Flows

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 inventory?

The balance sheet for Blineberry Corporation follows: Operating income during the period was $18,000, while cash dividends paid were $17,400. The total use of cash at Blineberry Corporation during the year was

Which of the following would not appear on a statement of cash flows prepared using the direct method?

A company uses the indirect method to prepare the statement of cash flows, how will a gain from the sale of equipment be presented on the statement of cash flows?

A company uses the indirect method to prepare the statement of cash flows. How would a gain from the sale of equipment be presented on the statement?

Regarding the statement of cash flows, which of the following is true?

The managerial accountant at the Holiday Musical Academy is required to complete the statement of cash flows. The managerial accountant is required to determine the amount of money the company used to purchase property, plant, and equipment (PP&E)during the year. The balance of PP&E at the beginning of the year is $1,650,000 and the balance of PP&E at the end of the year is $2,750,000. The managerial accountant reviewed the general journal and noticed that the original cost of equipment sold during the year was $50,000. Using the following information, calculate the amount of cash the company paid in cash to purchase new property, plant, and equipment during the year:

Operating activities resulting from the sales of goods and services relate to

Of the following, which is not a cash outflow from an investing activity?

Which is not reported as an operating activity on a cash flow statement prepared using the indirect method?

Which of the following is/are created by 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, F for the financing section, S for a separate schedule of noncash investing and financing activities, and N for items not disclosed on the statement of cash flows. ________ a. Paid cash dividends ________ b. Paid interest on a short-term note payable ________ c. Sold treasury stock for cash ________ d. Converted debt to common stock ________ e. Paid accounts payable ________ f. Paid salaries ________ g. Received cash dividends ________ h. Sold merchandise for cash ________ i. Acquired a patent by issuing common stock ________ j. Purchase of land using preferred stock ________ k. Received stock dividends

Use the direct method of cash flows to answer the question. Calculate the amount of cash paid to purchase merchandise during the year.

On the statement of cash flows, which of the following sections includes borrowing money and paying off loans?

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 this year. What was the net cash used for investing activities?

A company uses the direct method to prepare the statement of cash flows. It presents the following amounts on its financial statements: *Relates solely to the acquisition of inventory Which of the following is correct about the accounts receivable in the operating activities category in the statement of cash flows?

Investors and management use the statement of cash flows to evaluate a firm's profitability.

If a company uses the indirect method to prepare the statement of cash flows, which of the following items would be added to net income to determine the net cash flow from operating activities?

When a company uses the indirect method to present the statement of cash flows, a gain on the sale of a long-term asset must be added to net income to reconcile to net cash provided by operating activities.

A company purchases equipment for use in its business activities. If the company prepares the statement of cash flows using the indirect method or the direct method, where would this transaction appear?