Exam 16: Reporting the Statement of Cash Flows

A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

The accountant for Crusoe Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the begining of the year \ 126,000 Cash dividends declared for the year 46,000 Proceeds from the sale of equipment 81,000 Gain on the sale of equipment 7,000 Cash dividends payable at the beginning of the year 18,000 Cash dividends payable at the end of the year 20,000 Net income for the year 92,000 - What is the ending balance for retained earnings? A) $352,000. B) $218,000. C) $179,000. D) $172,000. E) $170,000.

Addams Corporation paid cash dividends totaling $75,000 during its most recent fiscal year. How should this information be reported on Addams's statement of cash flows?

In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was \ 52,000 Accounts payable increased by 18,000 Accounts receivable decreased by 25,000 Inventories increased by 5,000 Depreciation expense was 30,000 Net cash provided by operating activities was:

Northington, Inc. is preparing the company's statement of cash flows for the fiscal year just ended. Using the following information, determine the amount of cash flows from financing activities: Net in come \ 182,000 Gain on the sale of equipment 12,300 Proceeds from the sale of equipment 92,300 Depreciation expense - equipment 50,000 Payment of bonds at maturity 100,000 Purchase of land 200,000 Istuance of common stock 300,000 Increase in merchandise inventory 35,400 Decrease in accounts receivable 28,800 Increase in accounts payable 23,700 Payment of cash dividends 32,000

Use the following information to calculate cash paid for income taxes: Income tax expense \ 43,000 Income tax payable, January l 9,100 Income tax payable, December 31 10,200

Accounting standards:

When preparing the operating activities section of the statement of cash flows using the indirect method, depreciation is added to net income.

Financing activities include receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks.

An investment that is readily convertible to a known amount of cash and that is sufficiently close to its maturity date so that its market value is unaffected by interest rate changes is a(n):

Use the following information and the indirect method to calculate the net cash provided or used by operating activities: Net income \ 85,300 Depreciation expense 12,000 Increase in merchandise inventory 2,050 Increase in accounts payable 6,150

What are the five usual steps involved in the preparation of the statement of cash flows?

In preparing a company's statement of cash flows for the year just ended, the following information is available: Loss on the sale of equipment \ 14,000 Purchase of equipment 225,000 Proceeds from the sale of equipment 106,000 Repayment of outstanding bonds 87,000 Purchase of treasury stock 25,000 Issuance of common stock 96,000 Purchase of land 115,000 Increase in accounts receivable during the year 33,000 Decrease in accounts payable during the year 75,000 Payment of cash dividends 35,000 - Net cash flows from investing activities for the year were:

The cash flow on total assets ratio is computed by dividing average total assets by operating income.

When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current operating liabilities are subtracted from net income.

The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period net income.

In preparing a company's statement of cash flows for the year just ended, the following information is available: Loss on the sale of equipment \ 14,000 Purchase of equipment 225,000 Proceeds from the sale of equipment 106,000 Repayment of outstanding bonds 87,000 Purchase of treasury stock 25,000 Issuance of common stock 96,000 Purchase of land 115,000 Increase in accounts receivable during the year 33,000 Decrease in accounts payable during the year 75,000 Payment of cash dividends 35,000 - Net cash flows from financing activities for the year were:

When using a spreadsheet to prepare the statement of cash flows, a decrease in accounts payable is entered in the Analysis of Changes columns with a debit in the statement of cash flows section and a credit in the balance sheet section.

Investments that are readily convertible to a known amount of cash and are sufficiently close to their maturity so that the market value is unaffected by interest rate changes are ________.