Exam 16: The Statement of Cash Flows

Lewis,Inc.uses the indirect method to prepare its statement of cash flows.Refer to the following portion of the comparative balance sheet: Additional information provided by the company includes the following: Equipment costing $104,000 was purchased for cash. Equipment with a net book value of $20,000 was sold for $28,000. Depreciation Expense of $24,000 was recorded during the year. Use the T-account format and evaluate the transactions affecting Property,Plant,and Equipment,net.

Hector Production Company uses the indirect method to prepare its statement of cash flows.The Treasury Stock account had a debit balance of $7,000 at the beginning of the year and a debit balance of $18,000 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 $11,000 for the buy back of Treasury Stock.

Caleb Auto Parts Company uses the indirect method to prepare its statement of cash flows.Refer to the following portion of the comparative balance sheet: Additional information provided by the company includes the following: Equipment costing $104,000 was purchased for cash. Equipment with a net book value of $20,000 was sold for $28,000. Depreciation expense of $24,000 was recorded during the year. Prepare the investing activities section of the statement of cash flows.

Samuel Corp.has provided the following information for the year ended December 31,2017. Additional information provided by the company includes the following: Equipment costing $60,000 was purchased for cash. Equipment with a net book value of $10,000 was sold for $16,000. Depreciation expense of $16,000 was recorded during the year. During 2017,the company repaid $43,000 of long-term notes payable. During 2017,the company borrowed $34,000 on a new long-term note payable. There were no stock retirements during the year. There were no sales of treasury stock during the year. All sales are on credit. Prepare the 2017 statement of cash flows,using the indirect method.

Which of the following transactions would be shown in the non-cash investing and financing activities section of the statement of cash flows?

Jewel Tone Paints Company uses the direct method for preparing its statement of cash flow.Jewel Tone reports the following information regarding 2017: From the income statement: Sales Revenues,$267,000 Cost of Goods Sold,$214,000 Operating Expenses,$35,000 From the balance sheet: What amount will be shown for payments to suppliers for Merchandise Inventory purchases? (Assume that Accounts Payable are for purchases of merchandise inventory only. )

Which of the following sections of the statement of cash flows includes activities that affect net income on the income statement?

Gladiator,Inc.uses the direct method to prepare its statement of cash flows.Use the following information reported for 2016 to compute the amount of cash paid for merchandise inventory. Cost of Goods Sold,$135,000 Merchandise Inventory,beginning balance,$26,000 Merchandise Inventory,ending balance,$66,000 Accounts Payable,beginning balance,$7,900 Accounts Payable,ending balance,$5,100

Cat Nap Corp.uses the indirect method to prepare the statement of cash flows.Refer to the following section of the comparative balance sheet: How will the change in Accounts Receivable be shown on the statement of cash flows?

Harrison Recyclers Company uses the indirect method to prepare its statement of cash flows.Refer to the following information for 2017: 1.Retained Earnings,beginning balance,$142,000 2.Retained Earnings,ending balance,$121,000 3.There is a net loss of $15,000 for the year. What is the amount of dividends declared during the year?

The investing activities section of the statement of cash flows reports cash receipts and payments that increase or decrease long-term liabilities.

While preparing a statement of cash flows using the indirect method,an increase in current assets is added to net income to arrive at net cash flow from operating activities.

Pastel Paints Company uses the direct method for preparing its statement of cash flow.Pastel reports the following information regarding 2017: From the income statement: Sales Revenues,$265,000 Cost of Goods Sold,$213,000 Operating Expenses,$32,000 From the balance sheet: What amount will be shown for collections from customers?

Financing activities on the statement of cash flows affect the long-term liability and equity accounts.

Clark Coatings Company uses the indirect method to prepare its statement of cash flows.Refer to the following information for the year 2017: Net cash provided by operating activities: $42,000 Net cash used for investing activities: $(30,000) Net cash provided by financing activities: $1,700 What is the net change in cash during the year?

Martinez Installations Company uses the direct method to prepare its statement of cash flows.Martinez has reported sales revenues of $200,000 on its income statement for 2017.If the balance in Accounts Receivable has increased by $10,000 during the year,then $10,000 needs to be added to $200,000 to calculate collections from customers.

Free cash flow is calculated by adding cash payments planned for investments in long-term assets and cash dividends to the amount of net cash provided by operating activities.

Cardinal Company uses the indirect method to prepare its statement of cash flows.Using the following information,complete the worksheet for the year ended December 31,2016. - Net Income for the year ended December 31,2016 was $49,000 - Depreciation expense for 2016 was $12,000 - During 2016,plant assets with a book value of $10,000 (cost $10,000 and accumulated depreciation $0)were sold for $14,000 - Plant assets were acquired for $52,000 cash - Issued common stock for $28,000 - Issued long-term notes payable for $34,000 - Repaid long-term notes payable for $40,000 - Purchased treasury stock for 3,000 - Paid dividends of $10,000

The purchase of equipment financed by a long-term notes payable is an example of ________.

Which of the following sections of the statement of cash flows includes activities that increase and decrease long-term liabilities and stockholders' equity?