Exam 21: Statement of Cash Flows

An example of a noncash expense would be depreciation.

Which would not go into the operating activities section of a statement of cash flows using the direct method?

The statement of cash flows provides information about all of the following except:

The final cash amount on the statement of cash flows must match the cash balance shown on the balance sheet.

An increase in long-term note payable would mean:

Cash flows from financing activities would include:

If $12,000 was generated from operations,$6,000 was used for investing activities,and $4,000 was provided by financing activities,the cash balance would:

The following information is given for Tripp Company,which uses the indirect method. Net income \ 20,000 Depreciation expense 3,000 Increase in accounts receivable 2,000 Payment of dividends 2,000 Proceeds from sale of equipment 6,000 Increase in accounts payable 4,000 Decrease in inventory 3,000 From the information provided,answer the following questions: a)The cash flow from operating activities is ________. b)The cash flow from investing activities is ________. c)The cash flow from financing activities is ________.

When a corporation pays dividends it:

For a statement of cash flows to be produced,an accountant needs to compare changes in the related income statements.

Payments of cash dividends to stockholders would result in:

Even though the cost of fuel oil is rising,management is considering using up the business's reserves and not ordering any more this period.How will this decision affect the period's cash flows from operations-indirect method?

Depreciation is shown only when using the direct method of preparing a statement of cash flow.

The cash flows from operating activities are reported by the direct method on the statement of cash flows.Determine the following: a.If accrued expenses showed $50,000 on the income statement and payables increased from $15,000 to $18,500 on the balance sheet,what was the amount of cash paid? b.If insurance expense showed $10,000 on the income statement and Prepaid Insurance increased from $10,000 to $12,000 on the balance sheet,what was the amount of cash paid for insurance?

The Accounts Payable balance has decreased during the year.How would this event affect the statement of cash flows operations section-indirect method?

Loaning cash to borrowers would result in:

Using the indirect method for cash flows,depreciation expense is added to net income to determine the:

Rick Corporation's Accounts Receivable decreased by $25,000 during the year.What is the adjustment to the cash flow statement when it is prepared by the indirect method?

Of the following,which has a positive effect on the computation of cash flow from operations using the indirect method?

The following information is given for Sunny Corporation: Net income \ 45,000 Depreciation expense 8,000 Decrease in accounts receivable 3,000 Increase in supplies on hand 1,000 Sale of common stock 50,000 Purchase of equipment 45,000 Payment of dividends 6,000 Decrease in accounts payable 5,000 The indirect method is used.The beginning Cash balance is $23,000. Required: Answer the following questions with the information provided above. a)The cash flow from operating activities is ________. b)The cash flow from investing activities is ________. c)The cash flow from financing activities is ________. d)The net change in cash is ________. e)The ending balance of cash is ________.