FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: Statement of Cash Flows

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

Multiple Choice

Review LaterAdd Note

Review Later

A company had net income of $252,000.Depreciation expense is $26,000.During the year, accounts receivable and inventory increased by $15,000 and $40,000, respectively.Prepaid expenses and accounts payable decreased by $2,000 and $4,000, respectively.There was also a loss on the sale of equipment of $3,000.How much was the net cash flow from operating activities on the statement of cash flows using the indirect method?

A) $217,000.
B) $224,000.
C) $284,000.
D) $305,000.

E) None of the above
F) A) and C)

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

Firefly Inc.sold land for $225,000 cash.The land had been purchased five years earlier for $275,000.The loss on the sale was reported on the income statement.On the statement of cash flows, what amount should Firefly report as an investing activity from the sale of the land?

A) $225,000
B) $275,000
C) $50,000
D) $500,000

E) B) and D)
F) None of the above

Correct Answer

verified

Show Answer

Question 63

Multiple Choice

Review LaterAdd Note

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

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: a gain on sale of fixed assets b net income c retirement of long-term debt d sale of capital stock e distribution of stock dividends f payment of cash dividends g purchase of fixed assets h sale of fixed assets i receipt of interest revenue j Payment of interest expense

The net income reported on the income statement for the current year was $250,000.Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively.Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: What is the amount of cash flows from operating activities 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 paid to purchase long-term investments would be reported in the statement of cash flows in

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.

Free cash flow is cash flow from operations less cash used to purchase fixed assets to maintain productive capacity.

The following two scenarios are independent of one another. 1 An analysis of the general ledger accounts indicates that office equipment was sold for $39,600 during the year.The equipment originally cost $68,000 and had accumulated depreciation of $22,500 on the date of sale.Indicate how the elements of this transaction would be reported on the statement of cash flows using the indirect method. 2 An analysis of the general ledger accounts indicates that delivery equipment, which cost $97,000 and on which accumulated depreciation totaled $42,100 on the date of sale, was sold for $57,500 during the year.Using this information, indicate the items to be reported on the statement of cash flows.

Cash flows from operating activities, as part of the statement of cash flows, include cash transactions that enter into the determination of net income.

A cash flow per share amount should be reported on the statement of cash flows.

When using the Spreadsheet work sheet method to analyze noncash accounts, it is best to start with

An analysis of the general ledger accounts indicates that equipment, with an original cost of $200,000 and accumulated depreciation of $170,000 on the date of sale, was sold for $20,000 during the year.Using this information, indicate the items to be reported on the statement of cash flows using the indirect method.

Baxter Company reported a net loss of $13,000 for the year ended December 31.During the year, accounts receivable decreased by $5,000, merchandise inventory increased by $8,000, accounts payable increased by $10,000, and depreciation expense of $4,000 was recorded.During the year, operating activities

The Dickinson Company reported net income of $155,000 for the current year.Depreciation recorded on buildings and equipment amounted to $65,000 for the year.In addition, a building with an original cost of $250,000 and accumulated depreciation of $190,000 on the date of the sale, was sold for $75,000.Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.

Free cash flow is the measure of operating cash flow available for corporate purposes after providing sufficient fixed asset additions to maintain current productive capacity.

Net income for the year was $45,500.Accounts receivable increased $5,500, and account payable increased by $11,200.Under the indirect method, the cash flow from operations is

A building with a cost of $153,000 and accumulated depreciation of $42,000 was sold for a $11,000 gain.When using the indirect method, the cash generated from this investing activity was $121,000.

Identify the section of the statement of cash flows a-d where each of the following items would be reported. -Increase in accounts receivable