Exam 21: Statement of Cash Flows

The section of the statement of cash flows from investing activities includes:

The activity that is probably the most important indicator of financial health is the net cash flow from:

Under the indirect method, net income is considered the primary source of cash from operating activities.

Activities that increase and decrease as a result of selling a company's stock are:

For each of the following items, indicate (by placing an X)whether the item would be found on the statement of cash flows in column 1, the direct approach for determining the cash flows from operating activities, column 2, the indirect approach for determining the cash flows from operating activities, column 3, cash flows from investing activities, column 4, cash flows from financing activities. If you identify that an item affects the cash flows from operation, indirect method, also indicate whether it will be increasing (+)or decreasing (-)the cash flows. -

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

Cash flows from financing activities would include:

For each of the following items, indicate (by placing an X)whether the item would be found on the statement of cash flows in column 1, the direct approach for determining the cash flows from operating activities, column 2, the indirect approach for determining the cash flows from operating activities, column 3, cash flows from investing activities, column 4, cash flows from financing activities. If you identify that an item affects the cash flows from operation, indirect method, also indicate whether it will be increasing (+)or decreasing (-)the cash flows. -

Fidelity Furniture's Net Income was $25,000. Other accounts that changed included: Accounts Receivable decreased by $18,000; Merchandise Inventory increased by $7,000; Accounts Payable increased by $4,000; and Salaries Payable decreased by $3,000. The amount of Net Cash Flow from Operating Activities using the indirect method is:

Which of the following, under the indirect method, is not a proper adjustment to net income to arrive at cash flow from operations?

A sale of fixed assets for cash is a(n):

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?

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

Carmen's Candies' Net Income was $40,000. Other accounts that changed included: Accounts Receivable decreased by $30,000; Merchandise Inventory increased by $20,000; Accounts Payable decreased by $4,000; and Salaries Payable increased by $1,000. The amount of Net Cash Flow from Operating Activities using the indirect method is:

Indicate the effect that each of the following transactions has on the cash balance. Use (I)for increase, (D)for decrease, and (N)for no change. a)________ Increase in inventory b)________ Sale of common stock for cash c)________ Payment of dividends d)________ Depreciation expense for the period e)________ Payment of long-term debt f)________ Loan of money to another company g)________ Increase in Accounts Payable h)________ Purchase of equipment on account

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

The following information is given for Nevada Times: The indirect method is used. 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 ________.

For each of the following items, indicate (by placing an X)whether the item would be found on the statement of cash flows in column 1, the direct approach for determining the cash flows from operating activities, column 2, the indirect approach for determining the cash flows from operating activities, column 3, cash flows from investing activities, column 4, cash flows from financing activities. If you identify that an item affects the cash flows from operation, indirect method, also indicate whether it will be increasing (+)or decreasing (-)the cash flows. -

When preparing the statement of cash flows by the indirect method, if current liabilities increase the difference is:

The sale of plant and equipment for cash would result in: