Exam 13: The Statement of Cash Flows

For each of the following asset and liability balance changes from the beginning to the end of the year, indicate whether the change should be added to (+) or subtracted from (-) net income for purposes of preparing the operating activity section of the statement of cash flows using the indirect method.

The following information relates to Finnegan Inc.: Finnegan's accounts payable balances are composed solely of amounts due to suppliers for inventory purchases. Required: Compute the amount that would be reported as "cash paid for purchases" on the statement of cash flows using the direct method.

The payment of interest expense will be depicted on the statement of cash flows as a:

Generally accepted accounting principles allows which of the following methods of preparing the statement of cash flows?

Paxton Inc. had the following information related to last year's sales: What amount would be reported as "cash collections from customers" on the statement of cash flows using the direct method?

Poindexter Inc. had the following information related to last year's sales: Required: Compute the amount that would be reported as "cash collections from customers" on the statement of cash flows using the direct method.

Crenshaw Inc. had the following information related to last year's purchases: What amount would be reported as "cash outflows for purchases" on the statement of cash flows using the direct method?

Pomander Inc. had the following information related to last year's sales: What amount would be reported as "cash collections from customers" on the statement of cash flows using the direct method?