Exam 13: Statement of Cash Flows

On the statement of cash flows, a $7,500 gain on the sale of fixed assets would be

The following data for Larson Co. for the year ending December 31, Year 2, and the preceding year ended December 31, Year 1, are available: In addition to the balance sheet data, assume that: • Equipment costing $125,000 was purchased for cash. • Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000. • The stock was issued for cash. • The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000. What are the net cash flows from operating, investing, and financing activities for Year 2?

In preparing the statement of cash flows, the correct order of reporting cash activities is financing, operating, and investing.

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

The operating cash flow available for company use after purchasing the fixed assets that are necessary to maintain current operations is called the

Which of the following would not be classified as an operating activity?

Dorman Company reported the following data: ​ Net income \ 225,000 Depreciation expense 25,000 Gain on disposal of equipment 20,500 Decrease in accounts receivable 14,000 Decrease in account payable 3,600 ​ Prepare the cash flows from operating activities section of the statement of cash flows using 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.

Equipment with an original cost of $75,000 and accumulated depreciation of $20,000 was sold at a loss of $7,000. As a result of this transaction, cash would

On the statement of cash flows, the cash flows from operating activities section would include

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

The current period statement of cash flows includes the following: Cash balance at the beginining of the period \ 310,000 Net cash flow from operating activities 185,000 Net cash flow used for investing activities 43,000 Net cash flow used for financing activities 97,000 The cash balance at the end of the period is

Samuel Company's accumulated depreciation-equipment increased by $6,000, while patents decreased by $2,200 between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a loss of $3,200 from the sale of investments. Assume no changes in noncash current assets and liabilities. ​ Reconcile a net income of $92,000 to net cash flow from operating activities.

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

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.

State the section(s) of the statement of cash flows prepared by the indirect method (operating activities, investing activities, financing activities, or not reported) and the amount that would be reported for each of the following transactions: (a) Received $\$ 120,000$ from the sale of land costing $\$ 70,000$ (b) Purchased investments for $\$ 75,000$ (c) Declared $\$ 35,000$ cash dividends on stock. $\$ 5,000$ dividends were payable at the beginning of the year, and $\$ 6,000$ were payable at the end of the year (d) Acquired equipment for $\$ 64,000$ cash (e) Declared and issued 100 shares of $\$ 20$ par common stock as a stock dividend, when the market price of the stock was $\$ 32$ a share (f) Recognized depreciation for the year, $\$ 37,000$ (g) Issued 85,000 shares of $\$ 10$ par common stock for $\$ 25$ a share, receiving cash (h) Issued $\$ 500,000$ of 20 -year, $10 \%$ bonds payable at 99 (i) Borrowed $\$ 43,000$ from Regional Bank, issuing a 5 -year, $8 \%$ note for that amount A)Operating activities B)Financing activities C)Investing activities D)Schedule of noncash financing and investing

The board of directors of Kendall Co. declared cash dividends totaling $390,000 during the current year. The comparative balance sheet indicates dividends payable of $58,000 at the beginning of the year and $73,000 at the end of the year. What was the amount of cash payments Kendall Co. made to stockholders during the year?

If 800 shares of $40 par common stock are sold for $43,000, the $43,000 would be reported in the cash flows from financing activities section of the statement of cash flows.