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Exam 15: Statement of Cash Flows

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Question 1

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Transactions that involve the acquisition or sale of long-term assets are generally classified as investing activities on the statement of cash flows.

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Question 2

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Income statements are prepared on a (n) ______________.

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accrual basis

Question 3

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A company had net income of $230,000. Depreciation expense is $26,000. During the year accounts receivable and inventory increased $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased $2,000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. Using the indirect method, what is the amount of net cash flows from operating activities on the statement of cash flows?

The two approaches to calculating operating cash flows are the _______________ and the _____________.

Which method of preparing the operating activities section of the statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses?

Tracy Company reported the following information at the end of 2013 and 2014: An analysis of the company's records indicated that there were no cash flow effects resulting from the changes in the two accounts presented above. How should Tracy report the changes in these accounts on a statement of cash flows?

The following information is available for Snider Company: Required: Based on the preceding information, compute the net cash provided by operating activities.

Which of the following would be added to net income using the indirect method?

Figure 15-2.Chandler Company's net income last year was $98,000 and cash dividends declared and paid to the company stockholders was $13,000. Changes in selected balance sheet accounts for the year appear below: -Refer to Figure 15-2. The net cash flows from investing activities to be reported in a statement of cash flows is

The Prince Company reported net income of $260,000 for the current year. Depreciation recorded on buildings and equipment amounted to $90,000 for the year. Balances of the current asset and current liability accounts for 2013 and 2014 are as follows: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Figure 15-1.Master Company's net income last year was $88,000 and cash dividends declared and paid to the company stockholders was $60,000. Changes in selected balance sheet accounts for the year appear below: -Refer to Figure 15-1. The net cash flows from financing activities last year was

Figure 15-1.Master Company's net income last year was $88,000 and cash dividends declared and paid to the company stockholders was $60,000. Changes in selected balance sheet accounts for the year appear below: -Refer to Figure 15-1. The net cash flows from operating activities last year was

The net income reported on the income statement for the current year was $200,000. Depreciation recorded on plant assets was $38,000. Accounts receivable and inventories increased by $2,000 and $8,000, respectively. Prepaid expenses and accounts payable decreased by $1,000 and $11,000, respectively. Using the indirect method, how much would be reported for net cash flows from operating activities in the statement of cash flows?

If accounts payable have increased during a period,

Moore Company's net income last year was $56,000 and cash dividends declared and paid to the company stockholders was $31,000. Changes in selected balance sheet accounts for the year appear below: Based solely on this information, the net cash flows from operating activities under the indirect method on the statement of cash flows would be

The balance sheets of Dolan Company, for December 31, 2014 and 2013, are as follows: Additional information: Required: Prepare a statement of cash flows using the indirect method.

The sale of land for cash would be classified as a cash inflow from a financing activity.

Which of the following financing activities results in a cash outflow?

Last year Simpson Company reported cost of goods sold of $105,000. Inventories decreased by $10,000 during the year, and accounts payable increased by $25,000. The company uses the direct method to determine the net cash flows from operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be

Last year Frye Company's cash account increased by $17,000. Net cash flows from investing activities were ($40,000) . Net cash flows from financing activities were $2,000. On the statement of cash flows, the net cash flows from operating activities were