Exam 14: Statement of Cash Flows

Accounts receivable from sales to customers amounted to $40,000 and $32,000 at the beginning and end of the year,respectively.Income reported on the income statement for the year was $110,000.Exclusive of the effect of other adjustments,the cash flows from operating activities to be reported on the statement of cash flows is

The following selected account balances appeared on the financial statements of the Washington Company: The Washington Company uses the direct method to calculate net cash flow from operating activities. Cash collections from customers are

A building with a cost of $153,000 and accumulated depreciation of $42,000 was sold for a $11,000 gain.When using the indirect method,the cash generated from this investing activity was $121,000.

In preparing the statement of cash flows,the correct order of reporting cash activities is Financing,Operating,Investing.

Rogers Company reported net income of $35,000 for the year.During the year,accounts receivable increased by $7,000,accounts payable decreased by $3,000 and depreciation expense of $8,000 was recorded.Net cash provided by operating activities for the year is

Cash paid for preferred stock dividends should be shown on the statement of cash flows under

Cash flows from investing activities,as part of the statement of cash flows,include payments for the purchase of treasury stock.

Free cash flow is cash from operations,less cash for

The cost of merchandise sold during the year was $45,000.Merchandise inventories were $13,500 and $10,500 at the beginning and end of the year,respectively.Accounts payable were $7,000 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

For each of the following,identify whether it would be disclosed as an operating (O),financing (F),or investing (I)activity on the statement of cash flows under the indirect method.

To determine cash payments for operating expenses for the cash flow statement using the direct method,a decrease in prepaid expenses is added to operating expenses other than depreciation.

A ten-year bond was issued at par for $250,000 cash.This transaction should be shown on a statement of cash flows under

The cash flows from operating activities are reported by the direct method on the statement of cash flows.Determine the following:

Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method?

Free cash flow is the measure of operating cash flow available for corporate purposes after providing sufficient fixed asset additions to maintain current productive capacity and dividends.

Under the direct method of reporting cash flows from operations,the major source of cash is cash received from customers.

The statement of cash flows reports a firm's major sources of cash receipts and major uses of cash payments for a period.

Which one of the following below would not be classified as an operating activity?

Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year.Net income reported on the income statement for the year was $105,000.Exclusive of the effect of other adjustments,the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is

In preparing the cash flows from operating activities section of the statement of cash flows by the indirect method,the amortization of bond discount for the period is deducted from the net income for the period.