Exam 11: The Statement of Cash Flows

During the year,Lady Liberty Corporation's Treasury Stock account increased $46,000 due to a cash purchase,cash dividends of $42,000 were paid and the company reported net income of $200,000.On the statement of cash flows (indirect method),Net cash used by financing activities is:

Under the indirect method to prepare the statement of cash flows,a decrease in a current asset other than cash indicates a deduction from net income when calculating Net cash provided by operating activities.

The direct method of preparing the statement of cash flows is preferred by the Financial Accounting Standards Board primarily because of the way it reports:

The three types of activities reported on the statement of cash flows are:

Investing and financing activities for the statement of cash flows may differ when using the direct method instead of the indirect method.

On a statement of cash flows prepared with the indirect method,adjustments to reconcile net income to net cash provided by operating activities do NOT include:

Using the indirect method to prepare the statement of cash flows,dividends paid during the year are:

Prince Charming Inc.has the following selected accounts available at December 31,2019: Additional information: 1.No plant assets were sold or exchanged during 2019.New plant assets were acquired with cash. 2.No notes receivable were collected during 2019. 3.No common stock was retired during 2019. Using the indirect method,prepare the investing and financing sections of the statement of cash flows for the year ending December 31,2019.

The purchase of treasury stock would be reported on a statement of cash flows as a:

Early Years Corporation reports a $17,000 increase in Inventory and a $27,000 increase in accounts payable for the year.If the cost of goods sold is $400,000 for the year,the cash paid to Early Years' suppliers for inventory is:

Net cash provided by operating activities under the indirect method must be ________ net cash provided by operating activities under the direct method.

On the statement of cash flows,financing activities involve:

Sweeten Corporation had sales of $890,000.The beginning accounts receivable balance was $66,000 and the ending accounts receivable balance was $250,000.The cash collected from customers for this reporting period is:

Newsome Corporation had accounts receivable of $120,000 at the beginning of the year and $135,000 at the end of the year.Sales for the year amounted to $565,000.Cash collections from customers are:

The only financial statement used to prepare the statement of cash flows is the balance sheet.

Using the indirect method to calculate net cash provided by operating activities,a decrease in prepaid expenses is:

Successful businesses need net income and strong cash flows.

Einstein Corporation reported a decrease in inventory of $13,000.The cost of goods sold for the year was $180,000.There was also a $4000 decrease in accounts payable from the beginning of the year to the end of the year.What is Einstein's cash payment to suppliers for inventory?

There are two ways to format operating activities on the statement of cash flows.

A company reports the following balances: What is reported on the statement of cash flows prepared with the indirect method for the year ended December 31,2020? Assume there were no retirements of common stock or additional purchases of Treasury Stock during 2020.No dividends were declared in 2020.