Exam 21: Statement of Cash Flows

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)________ Issued common stock for cash b)________ Acquired land for cash c)________ Purchase equipment on account d)________ Paid a cash dividend e)________ Purchased supplies on account f)________ Received payment on account g)________ Borrowed money by issuance of a long-term debt h)________ Purchased equipment on account to be paid within one year

Transactions dealing with the exchange of cash between the firm and its owners (stockholders)and creditors are called:

The net income reported on the income statement for the current year was $60,000. Depreciation recorded on fixed assets was $31,000. What is the cash flow from operations that would appear on a cash flow statement using the indirect method?

Loaning cash to borrowers would result in:

The board of directors is considering approving a declaration and payment of dividends for the second quarter of the year. How will this decision affect the period's cash flows from operations-indirect method?

The records of Ashley Boutique showed Net Loss, $25,000; Depreciation Expense, $35,000; and increase in Supplies on Hand, $8,000. The amount of Net Cash Flow from Operating Activities using the indirect method is:

When comparing net cash provided by operating activities using the indirect versus direct method:

Carolina Company sold a machine for $12,000 cash, which had an original cost of $19,000 and accumulated depreciation of $6,000. The amount of cash provided by this sale is:

An inflow of cash from investing activities would be:

The final cash amount on the statement of cash flows must match the cash balance shown on the balance sheet.

One section of a statement of cash flows is purchasing activities.

For a statement of cash flows to be produced, an accountant needs to compare changes in the related income statements.

There was a utility bill received but not paid. How would this nonpayment affect the statement of cash flows operations section-indirect method?

Which of the following items would be added to Net Income to compute Net Cash Flow from Operating Activities under the indirect method?

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. -

Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in:

The following information is given for Tripp Company, which uses the indirect method. From the information provided, answer the following questions: 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. -

Of the following, which has a positive effect on the computation of cash flow from operations using the indirect method?

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. -