Exam 21: The Statement of Cash Flows

In its 2016 income statement,WME reported $695,000 for service revenue earned from membership fees.WME received $681,000 cash in advance from members during 2016.In its reconciliation schedule,WME should:

Which of the following is not reported as an adjustment to net income when using the indirect method of computing net cash flows from operating activities?

Partial balance sheets and additional information are listed below for Rickey Company. Additional information for 2016: Net income was $160,000. Depreciation expense was $20,000. Required: Prepare the operating activities section of the statement of cash flows for 2016 using the indirect method.

Listed below are the reporting classifications for a statement of cash flows using the direct 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.

Which of the following is not true regarding the statement of cash flows?

The purchase of treasury stock is:

Use the following to answer questions In its 2015 Annual Report to Shareholders,Henchman & Co.provided the following Statement of Cash Flows: -What was most responsible for the positive cash flow from financing activities during 2015? What amount was received?

Which of the following is reported as a financing activity in the statement of cash flows?

A 10% stock dividend is reported in connection with a statement of cash flows as:

Which of the following does not represent a cash flow relating to operating activities?

During 2016,T Company engaged in the following activities: In T's statement of cash flows,what were net cash outflows from financing activities for 2016?

In using a spreadsheet to prepare the statement of cash flows,the summary entries duplicate the actual journal entries used to record the transactions during the year.

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

Cash paid to suppliers under the direct method is computed as:

Use the following to answer questions In its 2015 Annual Report to Shareholders,Kinney Inc.reported the following Consolidated Statement of Cash Flows: For the years ended December 31, -Assuming the decrease in accrued expenses during fiscal year 2015 included a $14,000 reduction due to interest on debt,compute the interest expense (net)for Kinney in that year.

Amounts held in cash equivalent investments must be reported separately from amounts held as cash in the statement of cash flows.

Listed below are the reporting classifications for a statement of cash flows using the direct 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.

Partial balance sheets and additional information are listed below for Julius Company. Additional information for 2016: Net income was $70,000. Depreciation expense was $30,000. Sales totaled $600,000. Cost of goods sold totaled $325,000. Required: Prepare the summary entry for the amount of cash received from customers during 2016.

Partial balance sheets and additional information are listed below for Ensign Company. Additional information for 2016: Net income was $170,000. Depreciation expense was $30,000. Sales totaled $400,000. Cost of goods sold totaled $145,000. Required: Prepare the summary entry for the amount of cash paid to merchandise suppliers during 2016.

In its 2016 income statement,WME reported $58,000 for insurance expense.WME paid $72,000 in insurance premiums during 2016.In its reconciliation schedule,WME should: