Exam 16: Statement of Cash Flows

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 paid to suppliers is

Cash dividends of $45,000 were declared during the year. Cash dividends payable were $10,000 at the beginning of the year and $15,000 at the end of the year. The amount of cash for the payment of dividends during the year is

The acquisition of land in exchange for common stock is an example of noncash investing and financing activity.

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

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

To determine cash payments for merchandise for the cash flow statement using the direct method, a decrease in accounts payable is added to the cost of merchandise sold.

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

Cash flows from investing activities, as part of the statement of cash flows, include receipts from the issuance of bonds payable.

Financing activities include

Land costing $71,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

Under the indirect method, expenses that do not affect cash are added to net income in the operating activities section of the statement of cash flows.

On the basis of the details of the common stock account presented below, calculate the total amount to be recorded in financing section of the statement of cash flows. Indicate whether the amount results in an increase or decrease in cash.

On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include

Based on the following, what is free cash flow? Operations includes $2,000 for depreciation. Investing includes the purchase of a replacement asset for $100,000 and the sale of the one used in production, which is now obsolete, for $70,000. Financing is made up of $70,000 of borrowing and $25,000 of dividends paid.

Kennedy, Inc. reported the following data: Prepare the cash flows for operating activities under the indirect method as it would appear on the statement of cash flows.

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.

Purchasing equipment by issuing a six-month note should be shown on the statement of cash flows under the investing activities section.

Indicate the section (operating activities, investing activities, financing activities, or none) in which each of the following would be reported on the statement of cash flows prepared by the indirect method:

Cash dividends of $50,000 were declared during the year. Cash dividends payable were $10,000 and $5,000 at the beginning and end of the year, respectively. The amount of cash for the payment of dividends during the year is

Cash receipts from interest and dividends are classified as