Exam 12: Reporting Cash Flows

The gain or loss from retirement of notes payable is reported under cash flows from operating activities on the statement of cash flows using the indirect method.

________ activities include those transactions that affect long-term liabilities and equity.

A company purchased equipment for $150,000 by paying $50,000 and signing a $100,000 note payable. The entire $150,000 is reported as a cash outflow in the financing section of the statement of cash flows.

Gregor Company reports net income of $305,000 for the year ended December 31. It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment. Its comparative balance sheet reveals a $40,200 increase in accounts receivable, a $10,200 decrease in prepaid expenses, a $15,200 increase in accounts payable, a $12,500 decrease in wages payable, and a $100,000 decrease in notes payable. Calculate the cash provided (used) in operating activities using the indirect method.

When preparing the operating activities section of the statement of cash flows using the indirect method, expenses and losses with no cash outflows are added back to net income.

All of the following statements related to reporting cash flows from investing and financing activities are true except:

When preparing the operating activities section of the statement of cash flows using the indirect method, expenses with no cash outflows are added back to net income.

The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the:

Based on the following income statement and balance sheet for Bankowski Corporation, determine the cash flows from operating activities using the indirect method.

The cash flow on total assets ratio is calculated by:

Alvarez Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: The ending balance in retained earnings is:

The cash flow on total assets ratio is computed by dividing ________ by ________.

A decrease in the inventory account during the year should be reported on the indirect method statement of cash flows as:

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.

Analysis reveals that a company had a net increase in cash of $20,000 for the current year. Net cash provided by operating activities was $18,000; net cash used in investing activities was $10,000 and net cash provided by financing activities was $12,000. If the year-end cash balance is $24,000, the beginning cash balance was:

The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers, and subtracts the major items of operating cash disbursements, such as cash paid for merchandise, is referred to as the:

A company's transactions with its creditors to borrow money and/or to repay the principal amounts of both short- and long-term debt are reported as cash flows from:

The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:

Noncash financing and investing activities are disclosed in a ________ or in a separate ________.

Jordan's net income for the year ended December 31, Year 2 was $185,000. Information from Jordan's comparative balance sheets is given below. Compute the cash received from the sale of its common stock during Year 2.