Exam 14: Statement of Cash Flows

Last year, Amber Company reported sales of $200,000 on its income statement.During the year, accounts receivable decreased by $33,000 and accounts payable decreased by $28,000.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:

A statement of cash flows indicates the sources and uses of a firm's cash during a period.

Total operating expenses on Pearl Company's income statement for last year totaled $300,000.During the year, the accounts payable stayed the same, the accrued liabilities stayed the same, and prepaid expenses stayed the same.Depreciation expense for the year was $29,000.Based on this information, operating expenses adjusted to a cash basis under the direct method on the statement of cash flows would be:

Zinc Company's net income last year was $60,000, and cash dividends declared and paid to the stockholders were $20,000.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:

Which of the following activities include acquiring and selling land?

The amount for "net cash from operating activities" will be different depending on if the direct method or the indirect method is used to construct the statement of cash flows.

Using the ________________ of reporting cash flow, each line on the income statement is adjusted to produce a cash flow income statement.

Activities that decrease cash are uses of cash and are referred to as ___________.

The data given below are from the accounting records of Kain Company: Based on this information, the net cash flows from operating activities on the statement of cash flows using the indirect method would be

Use the following major cash flow activities to classify the activities listed below: -Purchased land for cash

If a gain of $30,000 is incurred in selling (for cash) long-term investments having a book value of $180,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

If a company has both an inflow and an outflow of cash related to property, plant, and equipment,

Last year Kinslow Company's cash account increased by $16,000.Net cash flows from investing activities were $(39,000).Net cash flows from financing activities were $17,000.On the statement of cash flows, the net cash flows from operating activities were

Advance Systems Inc.reported the following information for Year 1 and Year 2: If Advance Systems uses the indirect method to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash flows from operating activities for Year 2?

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. -Loss on sale of land.

Stillwater Inc.reported the following information for Year 1 and Year 2: If Stillwater Inc.uses the indirect method to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash flows from operating activities for Year 2?

Issuing shares of common stock, paying dividends and paying off debt are all examples of _______________.

The balance sheet accounts affected by operating activities are:

Which of the following transactions does not affect cash during a period?

On the statement of cash flows, the indirect method adjusts net income to determine the net cash flows from operating activities.