Exam 13: Statement of Cash Flows

Empire Company uses the indirect method to prepare its statement of cash flows. The following information has been gathered for the current period: Solely on the basis of the above information, Empire's net cash flow from operating activities is:

The Nelson Corporation reported net income in excess of its net cash flow from operating activities for the current year. An explanation for this may be:

If accounts receivable increased during the year, deducting the increase from net sales determines the amount of cash received.

The following information was obtained from the Champion Company for the year ending December 31, 20__. Using the direct method, prepare a statement of cash flows.

Cash flows from operating activities-indirect method The data below are taken from the financial statements of the Rutherford Corporation: Income Statement: Net income \ 840,000 Depreciation expense 170,000 Amortization of patent 30,000 Gain on sale of equipment 110,000 Balance Sheet: Accounts receivable \ 710,000 \ 680,000 Inventory 840,000 800,000 Prepaid expenses 30,000 35,000 Accounts payable 660,000 630,000 Accrued expenses payable 430,000 440,000 Complete the partial statement of cash flows for the year ended December 31, 2009, showing the computation of net cash flows from operating activities by the indirect method:

Any "non-cash" investing and financing transactions should be disclosed in a supplementary schedule accompanying a statement of cash flows.

Alexander Company reported an increase of $185,000 in its accounts receivable during the year. The company's statement of cash flows reported $500,000 of cash received from customers. What amount of net sales must Alexander have recorded?

The cost of the land sold during 2009 was:

The "bottom line" in a statement of cash flows shows:

The amount of cash paid by Hierarchy to acquire plant assets during the current year was:

Lester's balance sheet at the end of 2008 showed Land of $100,000. On the basis of the data presented above, compute the amount to be reported for Land in Lester Corporation's balance sheet at December 31, 2009.

Based solely on the above information, Korman's net cash flow from investing activities for 2009 is:

Based solely on the data provided above, Hierarchy's net cash flow from investing activities for the current year is:

Which of the following would indicate a cash disbursement?

Which of the following would not be presented in the cash from operating activities section of the statement of cash flows when the indirect method is used?

Compute the amount of Seldin's cash payments for purchases of merchandise during the current year.

Net income differs from net cash flows from operations because of all the following except:

Based on the information provided below, complete the following worksheet to be used to prepare the statement of cash flows for the Gulp-it-Down Coffee Co. Additional Information: (1.) Net income for the year amounted to $60,000, and cash dividends were declared and paid in the amount of $20,000. (2.) Gulp-it-Down Coffee Co.'s only noncash expense was depreciation which totaled $100,000. (3.) The company purchased plant assets for $140,000. (4.) Notes payable in the amount of $60,000 were issued during the year.

Which of the following is a financing activity?

Which method will yield higher cash flows from operating activities?