FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 14: Statement of Cash Flows

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

Multiple Choice

Review LaterAdd Note

Review Later

Cash dividends paid on capital stock would be reported in the statement of cash flows in

A) the cash flows from financing activities section
B) the cash flows from investing activities section
C) a separate schedule
D) the cash flows from operating activities section

E) B) and D)
F) B) and C)

Correct Answer

verified

Show Answer

Question 62

True/False

Review LaterAdd Note

Review Later

Under the direct method of reporting cash flows from operations, the major source of cash is cash received from customers.

A) True
B) False

Correct Answer

verified

Show Answer

Question 63

Essay

Review LaterAdd Note

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.

Fortune Corporation's comparative balance sheet for current assets and liabilities was as follows: Adjust net income of $65,000 for changes in operating assets and liabilities to arrive at cash flows from operating activities using the indirect method.

The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following:

On the basis of the following data for Grant Co. for 2011 and the preceding year ended December 31, 2010, prepare a statement of cash flows. Use the indirect method of reporting cash flows from operating activities. Assume that equipment costing $125,000 was purchased for cash and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000; that the stock was issued for cash; and that the only entries in the retained earnings account were net income of $56,000 and cash dividends declared of $18,000.

In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is

The board of directors declared cash dividends totaling $242,000 during the current year. The comparative balance sheet indicates dividends payable of $48,000 at the beginning of the year and $63,000 at the end of the year. What was the amount of cash payments to stockholders during the year?

Rogers Company reported net income of $35,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $8,000 was recorded. Net cash provided by operating activities for the year is

Using the indirect method, if land costing $85,000 was sold for $145,000, the amount reported in the financing activities section of the statement of cash flows would be $85,000.

A building with a book value of $ 46,000 is sold for $51,000 cash Using the indirect method, this transaction should be shown on the statement of cash flows as follows:

The following selected account balances appeared on the financial statements of the Washington Company: The Washington Company uses the direct method to calculate net cash flow from operating activities. Cash collections from customers are

On the statement of cash flows, the cash flows from financing activities section would include

Cash paid to purchase long-term investments would be reported in the statement of cash flows in

Operating expenses other than depreciation for the year were $400,000. Prepaid expenses increased by $17,000 and accrued expenses decreased by $30,000 during the year. Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be

On the statement of cash flows, the cash flows from operating activities section would include

The comparative balance sheet of Barry Company, for 2011 and the preceding year ended December 31, 2010, appears below in condensed form: Additional data for the current year are as follows: Prepare a statement of cash flows using the indirect method.

Under the direct method of preparing a Statement of Cash Flows, the gain on the sale of land is not adjusted or reported as part of cash flows from operating activities.

The comparative balance sheet of Posner 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 indirect method of reporting cash flows from operating activities.

A ten-year bond was issued at par for $250,000 cash. This transaction should be shown on a statement of cash flows under