Exam 14: Statement of Cash Flows

Land costing $140,000 was sold for $173,000 cash.The gain on the sale was reported on the income statement as other income.On the statement of cash flows,what amount should be reported as an investing activity from the sale of land?

The statement of cash flows shows the effects on cash of a company's operating,investing,and financing activities.

The cost of merchandise sold during the year was $50,000.Merchandise inventories were $12,500 and $10,500 at the beginning and end of the year,respectively.Accounts payable were $6,000 and $5,000 at the beginning and end of the year,respectively.Using the direct method of reporting cash flows from operating activities,cash payments for merchandise total

Which of the following represents an inflow of cash and therefore would be reported on the statement of cash flows?

The statement of cash flows is not one of the basic financial statements.

Under the direct method of preparing a Statement of Cash Flows,the gain on the sale of land is not adjusted or reported as part of cash flows from operating activities.

Which of the following can be found on the statement of cash flows?

Cash receipts received from the issuance of a mortgage notes payable would be classified as

Cash flows from operating activities,as part of the statement of cash flows,include cash transactions that enter into the determination of net income.

A business issues 20-year bonds payable in exchange for preferred stock.This transaction would be reported on the statement of cash flows in

If 800 shares of $40 par common stock are sold for $43,000,the $43,000 would be reported in the cash flows from financing activities section of the statement of cash flows.

Cash flow per share is

Free cash flow is cash flow from operations,less cash used to purchase fixed assets to maintain productive capacity and cash used for dividends.

In determining the cash flows from operating activities for the statement of cash flows by the indirect method,the depreciation expense for the period is added to the net income for the period.

Financing activities include

The statement of cash flows is an optional financial statement.

Cash outflows from financing activities include the payment of cash dividends,the acquisition of treasury stock,and the repayment of amounts borrowed.

A major disadvantage of the indirect method of reporting cash flows from operating activities is that the difference between the net amount of cash flows from operating activities and net income is emphasized.

Equipment with an original cost of $75,000 and accumulated depreciation of $20,000 was sold at a loss of $7,000.As a result of this transaction,cash would

Cash dividends of $50,000 were declared during the year.Cash dividends payable were $10,000 and $5,000 at the beginning and end of the year,respectively.The amount of cash for the payment of dividends during the year is