Exam 14: Statement of Cash Flows

All SEC-registered firms must issue a statement of cash flows, in addition to the income statement and balance sheet.

The following events occurred last year at Marigold Company: Based on the information above, net cash flow from investing activities for the year on the statement of cash flows would be:

A company had net income of $230,000.Depreciation expense is $26,000.During the year accounts receivable and inventory increased $15,000 and $40,000, respectively.Prepaid expenses and accounts payable decreased $2,000 and $4,000, respectively.There was also a loss on the sale of equipment of $3,000.Using the indirect method, what is the amount of net cash flows from operating activities on the statement of cash flows?

Chandler Company's net income last year was $98,000 and cash dividends declared and paid to the company stockholders was $13,000.Changes in selected balance sheet accounts for the year appear below: - The net cash flows from financing activities to be reported in a statement of cash flows is

Which method of preparing the operating activities section of the statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses?

A depreciation expense is _____ to calculate net cash from operating activities using the indirect method.

Under the indirect method of determining the net cash from operating activities on the statement of cash flows, depreciation is subtracted from the net income for the period.

The net income reported on the income statement for the current year was $635,000.Depreciation recorded on plant assets was $29,000.Accounts receivable and inventories increased by $1,200 and $3,600, respectively.Prepaid expenses and accounts payable decreased by $800 and $16,000 respectively.How much cash was provided by operating activities?

Under the indirect method of determining the net cash from operating activities on the statement of cash flows, increases in current assets such as accounts receivable are added to net income.

The cash during a period is affected when:

Which of the following statement concerning the statement of cash flows is true?

Saphire Unlimited Company reported net income of $60,000 for the year.During the year, accounts receivable decreased by $6,000, accounts payable increased by $3,000, depreciation expense of $5,000 was recorded, and there was a gain $1,000 on the sale of long-term investments.Using the indirect method, net cash flow from operating activities for the year is:

For a statement of cash flows, firms are required to classify their cash activities into three categories: operating, investing, and borrowing.

Blue Company's net income last year was $35,000.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:

The _____ is a financing activity that results in cash inflow.

The __________________ computes operating cash flows by adjusting each line on the income statement to reflect cash flows.

Use the following major cash flow activities to classify the activities listed below: -Land is exchanged for common stock

A decrease in accounts payable is added to net income in the operating activities section of the statement of cash flows prepared under the indirect method.

Which of the following activities is an example of a financing activity?

Upon review of Johnson's Statement of Cash Flows, the following was noted: From this information, the most likely explanation is that Johnson is