Exam 14: Statement of Cash Flows

Cash paid to purchase long-term investments would be reported in the statement of cash flows in

If land costing $145,000 was sold for $205,000,the $60,000 gain on the sale would be added to net income in the operating activities section of the statement of cash flows prepared by the indirect method.

If $475,000 of bonds payable are sold at 101,$475,000 would be reported in the cash flows from financing activities section of the statement of cash flows.

Which of the following can be found on the statement of cash flows?

The net income reported on the income statement for the current year was $210,000.Depreciation recorded on equipment and a building amount to $62,500 for the year.Balances of the current asset and current liabilities accounts at the beginning and end of the year are as follows: End of Year Beginning of Yea Cash \ 56,000 \ 59,500 Accounts receivable net 71,000 73,400 Inventories 140,000 126,500 Prepaid expenses 7,800 8,400 Accounts payable merchandise creditors 62,600 66,400 Salaries payable 9,000 8,250 Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows,using the indirect method. 2. If the direct method had been used,would the net cash flow from operating activities have been the same? Explain.

Cash dividends of $50,000 were declared during the year.Cash dividends payable were $10,000 and $5,000 at the beginning and end of the year,respectively.The amount of cash for the payment of dividends during the year is

Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method?

Which of the following represents an inflow of cash and therefore would be reported on the statement of cash flows?

The manner of reporting cash flows from investing and financing activities will be different under the direct method as compared to the indirect method.

Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

When using the Spreadsheet work sheet method to analyze noncash accounts,it is best to start with

Using the indirect method,if land costing $85,000 was sold for $145,000,the amount reported in the financing activities section of the statement of cash flows would be $85,000.

Cash,as the term is used for the statement of cash flows,could indicate either cash or cash equivalents.

If a gain of $11,000 is realized in selling for cash office equipment having a book value of $55,000,the total amount reported in the cash flows from investing activities section of the statement of cash flows is

To arrive at cash flows from operations,it is necessary to convert the income statement from an accrual basis to the cash basis of accounting.

A business issues 20-year bonds payable in exchange for preferred stock.This transaction would be reported on the statement of cash flows in

Income tax was $175,000 for the year.Income tax payable was $30,000 and $40,000 at the beginning and end of the year,respectively.Cash payments for income tax reported on the statement of cash flows using the direct method is

On the statement of cash flows prepared by the indirect method,a $50,000 gain on the sale of investments would be

When using the spreadsheet work sheet for the statement of cash flows,indirect method,entries made on the spreadsheet are

Complete each of the columns on the table below,indicating in which section each item would be reported on the statement of cash flows operating,investing,or financing,the amount that would be reported,and whether the item would create an increase or decrease in cash.For item that affect more than one section of the statement,indicate all affected.Assume the indirect method of reporting cash flows from operating activities. The first item has been completed as an example.