Exam 21: The Statement of Cash Flows

A company reported interest expense of $540,000 for the year.Interest payable was $35,000 and $75,000 at the beginning and the end of the year,respectively.What was the amount of interest paid?

Which of the following is reported as an operating activity in the statement of cash flows?

Pickering Company's prepaid insurance was $8,000 at December 31,2015,and $10,000 at December 31,2016.Pickering reported insurance expense of $15,000 on the 2016 income statement.What amount would be reported in the statement of cash flows as insurance paid using the direct method?

Which of the following never requires an outflow of cash?

On December 31,2016,Tiras Company reported net income of $50,000 and sales of $200,000.The company also reported beginning and ending accounts receivable at $20,000 and $25,000,respectively.Tiras will report cash collected from customers in its 2016 statement of cash flows (direct method)in the amount of:

Why are "cash equivalents" included as part of cash in the statement of cash flows?

Use the following to answer questions In its 2015 Annual Report to Shareholders,Henchman & Co.provided the following Statement of Cash Flows: -Which type of activity (operating,investing,financing)was most responsible for the cash flow experienced by Henchman & Co.during 2015?

In a statement of cash flows in which operating activities are reported by the direct method,which of the following would increase reported cash flows from operating activities?

What are the general guidelines for an investment to be considered a cash equivalent?

Of the following,which is not an investing activity?

Use the following to answer questions In its 2016 Annual Report to Shareholders,Sisters Corporation included the following information on cash flows from operations: -Explain why Sisters Corporation subtracts equity income from its net income in its measurement of cash flows.

The statement of cash flows has been a required financial statement since 1988,but is the reporting of cash flows a relatively new concept? Explain.

Which of the following is reported as an investing activity in the statement of cash flows?

The accounting records of Unlucky Company provided the data below. Required: Prepare a reconciliation of net income to net cash flows from operating activities.

In its 2016 income statement,WME reported $11,000 of interest expense on its outstanding bonds.During the year,WME paid its regular installments of $9,000 of interest in cash.In its reconciliation schedule,WME should:

The accounting records of Westlake Industries provided the data below. Required: Prepare a reconciliation of net income to net cash flows from operating activities.

Charlene Company sold a printer with a cost of $68,000 and accumulated depreciation of $23,000 for $20,000 cash.This transaction would be reported as:

Which of the following would be an example of an investing activity on a statement of cash flows?

Prepare the summary entries necessary to determine the amount of cash received from customers for each of the four independent situations below.

A decrease in cash dividends payable means that dividends declared were less than dividends paid.