Exam 16: The Statement of Cash Flows

Outdoor Lighting Supply expects the following for 2018: Net cash provided by operating activities of $\$ 281,000$ Net cash provided by financing activities of $\$ 65,000$ Net cash provided by investing activities of $\$ 85,000$ Cash dividends paid to stockholders of $\$ 24,000$ Outdoor expects to spend $157,000 to modernize its showroom. How much free cash flow does Outdoor expect for 2018?

The financing activities section of the statement of cash flows includes activities that affect current assets and current liabilities.

When preparing the statement of cash flows using the indirect method,a loss on the sale of plant assets must be shown as a subtraction from the investing activities section.

Which of the following sections of the statement of cash flows include purchases and sales of long-term assets?

Nevada Sales purchased some equipment for $12,000 by issuing a five-year note payable.This will appear in the non-cash investing and financing activities section of the statement of cash flows.

Green Bay Sales purchased equipment for $50,000 by issuing a three-year note payable.On the statement of cash flows,this transaction would be shown in the ________.

Oregon Company is preparing its statement of cash flows using the indirect method.During the year,the company purchased equipment for $15,000 cash.Which of the following statements is TRUE?

Which of the following is the typical order of the sections on a statement of cash flows?

The three major categories included on the statement of cash flows are ________.

The spreadsheet starts with the beginning statement of cash flows and concludes with the ending statement of cash flows.

Which of the following sections of the statement of cash flows include activities that increase and decrease long-term assets?

Which of the following items are included as an operating activity on the statement of cash flows,using the direct method?

Virginia Company uses the indirect method to prepare the statement of cash flows.Refer to the following section of the comparative balance sheet: $\begin{array}{c}\text { Virginia Corp.}\\ \text { Comparative Balance Sheet}\\\text { December 31,2018 and 2017}\\\begin{array}{|l|r|r|r|}\hline&2018&2017&\text { Increase/(Decrease) }\\\hline \text { Accounts Payable } & \$ 4,000 & \$ 6,000 & \$(2,000) \\\hline \text { Accrued Liabilities } & 2,000 & 1,000 & 1,000 \\\hline \text { Long-term Notes Payable } & \underline{84,000} & \underline{90,000} & \underline{(6,000)} \\\hline \text { Total Liabilities } & \$ 90,000 & \$ 97,000 & \$(7,000) \\\hline \end{array}\end{array}$ How will the change in Accounts Payable be shown on the statement of cash flows?

Which of the following will be shown under the investing activities section of the statement of cash flows?

Jump Company uses the direct method to prepare its statement of cash flows.Refer to the following information reported for 2019: Cost of Goods Sold,$150,000 Merchandise Inventory,beginning balance,$26,000 Merchandise Inventory,ending balance,$64,000 Accounts Payable,beginning balance,$8100 Accounts Payable,ending balance,$5000 Operating expenses,$31,000 Accrued Liabilities,beginning balance,$2500 Accrued Liabilities,ending balance,$6400 Use the direct method to compute the cash paid to suppliers.(Accrued Liabilities relate to operating expenses.)

Free cash flow is the amount of cash available from operating activities before paying for planned investments in long-term assets.

Under IFRS,interest revenue and dividend income may be reported either as an operating activity or an investing activity.

Regarding the use of a spreadsheet for the preparation of the statement of cash flows,which of the following statements is TRUE?

Which of the following sections from the statement of cash flows includes the cash paid for the purchase of Treasury Stock?

New York Production Company uses the indirect method to prepare its statement of cash flows.The Treasury Stock account had a debit balance of $8,000 at the beginning of the year and a debit balance of $16,000 at the end of the year.No treasury stock was sold during the year.The financing section of the statement of cash flows will show a positive cash flow of $8,000 for the buyback of treasury stock.