Exam 15: How Well Am I Doing Statement of Cash Flows

Demagistris Corporation's balance sheet and income statement appear below: Cash dividends were $22. The company sold equipment for $14 that was originally purchased for $6 and that had accumulated depreciation of $4. The net cash provided by (used by) financing activities for the year was:

Moravec Company's net income last year was $46,000 and cash dividends declared and paid to the company's stockholders totaled $18,000. Changes in selected balance sheet accounts for the year appear below: Based solely on this information, the net cash provided by operations under the indirect method on the statement of cash flows would be:

Hutchings Corporation's net cash provided by operating activities was $124; its capital expenditures were $54; and its cash dividends were $33. The company's free cash flow was:

Financial statements of Farnham Corporation follow: Cash dividends were $3. -The net cash provided by (used by) financing activities for the year was:

Which of the following would be considered a "use" of cash for purposes of constructing a statement of cash flows?

Spanner Company recorded the following events last year: On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities. -Based solely on the information above, the net cash provided by (used in) financing activities on the statement of cash flows would be:

Spettel Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was $11,000 and its cash dividends were $2,000. -Which of the following classifications of changes in balance sheet accounts as sources and uses is correct?

An increase in the accumulated depreciation account of $50,000 over the course of a year would be shown on the company's statement of cash flows prepared under the indirect method as:

Nordstrand Company's net income last year was $36,000. Changes in selected balance sheet accounts for the year appear below: Based solely on this information, the net cash provided by operations under the indirect method on the statement of cash flows would be:

Burgett Corporation's balance sheet and income statement appear below: Cash dividends were $41. The company sold equipment for $15 that was originally purchased for $4 and that had accumulated depreciation of $4. -The net cash provided by (used by) operations for the year was:

Transactions that involve acquiring or disposing of noncurrent assets are generally classified as investing activities on the statement of cash flows.

Financial statements of Farnham Corporation follow: Cash dividends were $3. -The net cash provided by (used by) operations for the year was:

NOTES TO THE INSTRUCTOR: * The problem requirement does not indicate whether the indirect or direct method must be used to determine the net cash provided by operating activities. You can, if you choose, specify that either (or even both) methods be used. The solution contains solutions for both methods. * Due to the length of the problem, you may want to eliminate one or more of the requirements. ----------------------- Davis Company's comparative balance sheet and income statement for last year appear below: The company declared and paid $26,000 in cash dividends during the year. Required: a. Construct the operating activities section of the company's statement of cash flows for the year. b. Construct the investing activities section of the company's statement of cash flows for the year. c. Construct the financing activities section of the company's statement of cash flows for the year.

Gallichio Corporation's balance sheet and income statement appear below: Cash dividends were $1. The company sold equipment for $11 that was originally purchased for $5 and that had accumulated depreciation of $2. Required: Determine the net cash provided by (used by) operating activities for the year using the indirect method.

A change in deferred taxes is considered to be an investing activity on the statement of cash flows.

Kania Corporation's most recent balance sheet appears below: The net income for the year was $171. Cash dividends were $44. The net cash provided by (used by) investing activities for the year was:

Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, increases in current assets such as prepaid expenses are subtracted from net income.

Spiro Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was $7,000 and its cash dividends were $2,000. The total dollar amount of all of the items that would be classified as uses when compiling a simplified statement of cash flows is:

For purposes of preparing a the statement of cash flows, cash equivalents consist of short-term, highly liquid investments such as treasury bills, commercial paper, and money market funds that are made solely for the purpose of generating a return on funds that are temporarily idle.

Wander Company's comparative balance sheet and income statement for last year appear below: The company declared and paid $39,000 in cash dividends during the year. The following questions pertain to the company's statement of cash flows. -The net cash provided by (used in) financing activities last year was: