Exam 14: Statement of Cash Flows

Some individuals prefer to show operating cash flows as the difference between ___________ and ____________.

Which balance sheet accounts are affected by financing activities?

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method. -Increase in merchandise inventory during a period.

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method. -Declaration and payment of a cash dividend.

All firms that are registered with the ______________________ must issue a statement of cash flows.

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method. -Redemption of bonds for cash.

The following items were reported on the balance sheets and income statements of Marshall Company: How would the change in accounts payable be reported in the operating activities section of the statement of cash flows under the indirect method?

Total operating expenses on Opal Company's income statement for last year totaled $350,000.During the year, the accrued liabilities decreased by $15,000 and prepaid expenses increased by $10,000.Depreciation expense for the year was $20,000.Based on this information, operating expenses adjusted to a cash basis under the direct method on the statement of cash flows would be:

The net income reported on the income statement for the current year was $79,000.Depreciation was $6,000.Account receivable and inventories decreased by $1,100 and $2,700, respectively.Prepaid expenses and accounts payable increased, respectively, by $950 and $3,000.How much cash was provided by operating activities?

Which of the following activities includes cash flows from acquiring and retiring long-term debt?

The issuance of common stock in exchange for a building would appear both as a cash inflow in the financing activities section of the cash flow statement and also as a cash outflow in the investing activities section.

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method. -Decrease in accounts payable during a period.

Net income reported on the income statement for the current year was $350,000.Depreciation recorded on plant assets was $26,000.Accounts receivable and inventories increased by $3,000 and $5,000 respectively.Prepaid expenses and accounts payable decreased by $2,500 and $13,000 respectively.Using the indirect method, how much would be reported as net cash flow from operating activities on the statement of cash flows?

Which of the following would be subtracted from net income using the indirect method?

Cash inflows that enter into the determination of net income are classified as financing activities on a statement of cash flows.

Which one of the following affects cash during a period?

The indirect method and the direct method differ only on how the cash flows from ________________ are calculated.

The sale of land for cash would be classified as a cash inflow from a financing activity.

Titanium Company's net income last year was $25,000, and cash dividends declared and paid to the stockholders were $10,000.Changes in selected balance sheet accounts for the year appear below: Based solely on this information, net cash flow from operating activities under the indirect method on the statement of cash flows would be:

Last year, Alloy Company reported cost of goods sold of $130,000.Inventories decreased by $15,000 during the year, and accounts payable decreased by $10,000.The company uses the direct method to determine net cash flow from operating activities on the statement of cash flows.The cost of goods sold adjusted to a cash basis would be: