Exam 14: Statement of Cash Flows

Master Company's net income last year was $88,000 and cash dividends declared and paid to the company stockholders was $60,000.Changes in selected balance sheet accounts for the year appear below: - The net cash flows from investing activities last year was

Tracy Company reported the following information at the end of Year 1 and Year 2: An analysis of the company's records indicated that there were no cash flow effects resulting from the changes in the two accounts presented above.How should Tracy report the changes in these accounts on a statement of cash flows?

Investments in stock are reported as an investing activity on the statement of cash flows.

Harbor Company reported net income of $60,000 for the year ended December 31, Year 1.During the year, inventories decreased by $12,000, accounts payable decreased by $18,000, depreciation expense was $20,000 and a gain on disposal of equipment of $9,000 was recorded.Net cash provided by operating activities in Year 1 using the indirect method was

________________ are the ongoing, day-to-day, revenue-generating activities of an organization.

Highly liquid investments such as Treasury bills, money market funds, and commercial paper are examples of ___________________.

Which one of the following items is not necessary in preparing a statement of cash flows?

Using the indirect method, if equipment is sold at a gain, the

Which of the following is used in determining the change in cash for a period?

An increase in accounts payable is _____ while calculating cash flows from operating activities using indirect method.

Cash flow activities that include the cash effect of transactions that create revenues and expenses and thus enter into the determination of net income are classified as operating activities on the statement of cash flows.

Income statements are prepared on a (n) ______________.

Last year, Cyrstal Company reported sales of $180,000 on its income statement.During the year, accounts receivable increased by $50,000 and accounts payable increased by $20,000.The company uses the direct method to determine net cash flow from operating activities on the statement of cash flows.The sales revenue adjusted to a cash basis would be:

The indirect method of reporting the cash flows from operating activities on the statement of cash flows is the method most widely used in practice.

If accounts receivable have increased during the period,

An advantage to using a worksheet to organize the information of preparation of the statement of cash flows is that it uses a spreadsheet format allowing the preparer to use a PC and spreadsheet software.

Net income reported on the income statement for the current year was $300,000.Depreciation recorded on plant assets was $40,000.Accounts receivable and inventories decreased by $8,000 and $7,500 respectively.Prepaid expenses and accounts payable increased by $200 and $3,000 respectively.Using the indirect method, how much would be reported as net cash flow from operating activities on the statement of cash flows?

In calculating cash flows from operating activities using the indirect method, a loss on the sale of equipment will appear as a(n)

Which of the following would not be needed to determine net cash provided by operating activities?

If a loss of $9,200 is incurred in selling (for cash) a patent having a book value of $80,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is