Exam 9: Preparing and Analyzing the Statement of Cash Flows

The following information is from Ads,Inc.'s December 31,2011 annual report: Cash paid to vendors on Ads,Inc.'s statement of cash flows equals ________.

The following information is from Z,Inc.'s December 31,2011 annual report: Note: Z,Inc.does not sell to its customers on account; it collects cash from its customers in advance. Cash collected from customers on Z,Inc.'s statement of cash flows equals ________.

In general,investors and analysts prefer most to see ________.

How does the statement of cash flows aid analysts in the evaluation of a company's financial situation?

A use of cash for financing activities is ________.

Use the following information from Artizan,Inc.'s computerized accounting information system to prepare the operating activities section of the statement of cash flows for May using the Direct method.

To prepare the statement of cash flows using the indirect method ________.

How are the investing and financing activities sections of the statement of cash flows prepared?

Cash proceeds from the sale of land is a(n)________ activity on the statement of cash flows.

Cash from financing activities includes all cash receipts and all cash disbursements for long-term business assets.

Show the effect of each cash transaction on the statement of cash flows by putting a plus if the transaction results in a cash inflow or minus if a cash outflow in either the operating,investing or financing activity column:

It is considered proper and ethical to classify cash paid for interest as a financing activity on the statement of cash flows.

purchase of store equipment

For each of the following items,indicate whether it is either a cash inflow or outflow and in which section of the statement of cash flows it would be reported.

Which of the following events is a use of cash?

Match each of the following line items with the type of activity. -purchase of store equipment

Which of the following best indicates that a company is expanding/growing?

What are the three types of cash flows shown on the statement of cash flows? Give examples of each type.

How would managers use the information reported in the statement of cash flows?

The Financial Accounting Standards Board prefers that companies use the indirect method of reporting cash from operating activities.