Exam 11: The Statement of Cash Flows

Zimbalist Corporation reports a decrease in salaries payable of $3000.If salaries expense totaled $189,000 for the year,the cash paid to employees is:

On a statement of cash flows prepared with the indirect method,investing activities do NOT include:

Increases and decreases in the long-term liability accounts are reported on the statement of cash flows as:

Usually,the most important category on the statement of cash flows is cash flows from:

Salem,Inc.uses the indirect method to prepare its statement of cash flows.Salem's Accumulated Depreciation-Trucks account increased during the period.Salem did not purchase or sell trucks during the period.The increase in Accumulated Depreciation-Trucks is:

Under the indirect method to prepare the statement of cash flows,a loss on the sale of long-term assets is added to net income when calculating Net cash provided by operating activities.

The statement of cash flows is an optional statement.

Anew Health Care Company reports net income of $220,000 and Depreciation Expense of $16,000 for the year ending December 31,2019.No long-term assets were sold or exchanged during 2019.They also have the following data available: Using the indirect method,what is the net cash provided by operating activities for the year ending December 31,2019?

The three types of activities reported on the statement of cash flows are presented in the following order:

In 2019,Gary Kraen Company purchases $100,000 of equipment with cash.This purchase would be reported on Gary Kraen Company's 2019 statement of cash flows as:

A company is adjusting net income to determine Net cash provided by operating activities for the statement of cash flows.The indirect method is used.Which statement is INCORRECT?

An increase in interest payable during the reporting period indicates that the cash paid for interest exceeded interest expense on the income statement.

The most important type of cash flows on the statement of cash flows is ________.The least important type of cash flows on the statement of cash flows is ________.

Cinderella Company reports net income of $100,000 and Depreciation Expense of $50,000 for the year ending December 31,2019.There were no gains or losses from the sale of long-term assets.They also have the partial comparative balance sheet shown below: Using the indirect method,prepare the operating activities section of the statement of cash flows for the year ending December 31,2019.

Which financial statements cover a period of time?

Matthauson Company has the following comparative balance sheet data available: Additional information: 1.The company reports net income of $100,000 and depreciation expense of $20,000 for the year ending December 31,2019. 2.Dividends declared and paid in 2019,$70,000. 3.Equipment with a cost of $20,000 and accumulated depreciation of $10,000 was sold for $3,000. 4.New equipment was purchased for cash. 5.No common stock was retired during 2019. The company also reports the following income statement for the year ending December 31,2019: Using the direct method,prepare the statement of cash flows for the year ending December 31,2019.

Northwest Builders,Inc.reported Cost of Goods Sold for the current year of $330,000.During the same period,the Inventory account decreased $15,000 and the Accounts Payable account increased $26,000.The amount of cash paid to suppliers for inventory is:

Independent Support,Inc.issued common stock for $480,000 cash.The company declared and paid cash dividends of $52,000 and purchased treasury stock at a cost of $23,000.The financing section of the statement of cash flows will report Net cash provided by financing activities of:

Free cash flow equals:

Jerome Smith,Inc.began the year with $259,000 in accounts receivable and ended the year with $252,700 in accounts receivable.Sales for the year were $3,770,000.The cash collected from customers during the year amounted to: