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Exam 14: Statement of Cash Flows

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Question 51

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Which of the following would not be found in a Schedule of Noncash Investing and Financing Activities, reported at the end of a Statement of Cash Flows?

A) equipment acquired in exchange for a note payable
B) bonds payable exchanged for capital stock
C) purchase of treasury stock
D) capital stock issued to acquire fixed assets

E) A) and C)
F) A) and B)

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Question 52

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Zenith Corporation sells some of its used store fixtures. The acquisition cost of the fixtures is $12,500, the accumulated depreciation on these fixtures is $9,750 at the time of sale. The fixtures are sold for $5,300. The value of this transaction in the Investing section of the statement of cash flows is:

A) $12,500
B) $5,300
C) $2,750
D) $2,550

E) All of the above
F) A) and B)

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Question 53

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In preparing the cash flows from operating activities section of the statement of cash flows by the indirect method, the net decrease in inventories from the beginning to the end of the period is added to net income for the period.

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

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.

When using the worksheet method to analyzing noncash accounts , no order of analysis is required, but it is more efficient to start with Retained Earnings and proceed upward in the account listing.

The following information is available from the current period financial statements: The net cash flow from operating activities using the indirect method is

Lamar Corporation purchased land for $150,000. Later in the year the company sold land with a book value of $190,000 for $200,000. Show how the effects of these transactions are reported on the statement of cash flows using the indirect method.

The declaration and issuance of a stock dividend would be reported on the statement of cash flows.

Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is

A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under

For each of the following, identify whether it would be disclosed as an operating , financing, or investing activity on the statement of cash flows under the indirect method.

The comparative balance sheet of Colson Company, for 2011 and the preceding year ended December 31, 2010 appears below in condensed form: The income statement for the current year is as follows: Additional data for the current year are as follows: Prepare a statement of cash flows, using the direct method of reporting cash flows from operating activities.

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

Durrand Corporation's accumulated depreciation increased by $12,000, while patents decreased by $2,200 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $4,300 from sale of land. Reconcile a net income of $65,000 to net cash flow from operating activities.

Sales reported on the income statement were $690,000. The accounts receivable balance declined $39,000 over the year. Determine the amount of cash received from customers.

Cash paid for equipment would be reported in the statement of cash flows in

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

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

If $475,000 of bonds payable are sold at 101, $475,000 would be reported in the cash flows from financing activities section of the statement of cash flows.