Exam 21: The Statement of Cash Flows

Selected information from Peridot Corporation's accounting records and financial statements for 2016 is as follows ($ in millions): In its statement of cash flows,Peridot should report net cash outflows from investing activities of:

When preparing a statement of cash flows using the direct method,accrual of payroll expense is:

Red Manufacturing Company owns 40% of the outstanding common stock of Blue Supply Company.During 2016,Red received a $50 million cash dividend from Blue.What effect did this dividend have on Red's 2016 statement of cash flows?

Like U.S.GAAP,International Financial Reporting Standards (IFRS)also require a statement of cash flows.Consistent with U.S GAAP,cash flows are classified as operating,investing,or financing activities.However,with regard to interest and dividend inflows and outflows,the international standard for cash flow statements:

Do "cash flows from operating activities" report all the elements of the income statement on a cash basis? Explain.

Listed below are reporting classifications for a statement of cash flows using the indirect method for reporting operating cash flows.Indicate the reporting classification that would apply to each of the five transactions described below by placing the number of the reporting classification in the space provided by each transaction.

Hogan Company had the following account balances for 2016: Hogan reported net income of $300,000 for 2016.Assuming no other changes in current account balances,what is the amount of net cash provided by operating activities for 2016 reported in the statement of cash flows?

Cash equivalents have each of the following characteristics except:

In determining cash flows from operating activities (indirect method),adjustments to net income should not include:

Which of the following would be added to net income when determining cash flows from operating activities under the indirect method?

Sneed Corporation reported balances in the following accounts for the current year: Income tax expense was $230 for the year.What was the amount paid for taxes?

In a statement of cash flows using the indirect method,an increase in available-for-sale securities not due to an increase in their fair value should be reported as:

The amortization of bond discount is included in the statement of cash flows (indirect method)as:

Which of the following is not classified as an operating activity?

Ludwig Company's prepaid rent was $9,000 at December 31,2015,and $13,000 at December 31,2016.Ludwig reported rent expense of $19,000 on the 2016 income statement.What amount would be reported in the statement of cash flows as rent paid using the direct method?

Following are the income statement and some additional information for Carolina Consulting Company. All sales were on credit and accounts receivable decreased by $900 in 2016 compared to 2015.Merchandise purchases were on credit with a decrease in accounts payable of $700 during the year.Ending inventory was $500 larger than beginning inventory.Income taxes payable increased $300 during the year.All operating expenses were paid for in cash. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method.

Melanie Corporation declared cash dividends of $13,500 during the current year.The beginning and ending balances in dividends payable were $450 and $750,respectively.What was the amount of cash paid for dividends?

When treasury stock is sold at an amount less than its cost,the sale is classified as:

A purchase of equipment for cash is:

Proceeds from the sale of a plant site are: