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Exam 17: Statement of Cash Flows

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Question 91

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The following data are available for Cole Company. Net cash provided by financing activities is:

A) $270,000.
B) $390,000.
C) $480,000.
D) $510,000.

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

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Question 92

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Which of the following adjustments to convert net income to net cash provided by operating activities is incorrect?

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Question 93

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The following data are available for Nichols Corporation. Net cash provided by investing activities is:

The operating activities section of the statement of cash flows may be prepared using the ______________ method or the ______________ method.

Pierce Company reported net income of $180,000 for the current year. Depreciation recorded on buildings and equipment amounted to $80,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Instructions Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.

Using the indirect approach, noncash charges in the income statement are ______________ to net income and noncash credits are ______________ to compute cash provided by operations.

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

On the statement of cash flows worksheet,

Bent Company reports a $20,000 increase in inventory and a $5,000 decrease in accounts payable during the year. Cost of Goods Sold for the year was $170,000. Using the direct method of reporting cash flows from operating activities, cash payments made to suppliers were

Which one of the following affects cash during a period?

Which of the following transactions does not affect cash during a period?

Which one of the following items is not generally used in preparing a statement of cash flows?

The information in a statement of cash flows will not help investors to assess the entity's ability to

Selected transactions for the Eldon Company are listed below. 1. Collected accounts receivable. 2. Declared and paid dividends on common stock. 3. Sold long-term investments for cash. 4. Issued stock for equipment. 5. Repaid five year note payable. 6. Paid employee wages. 7. Converted bonds payable to common stock. 8. Acquired long-term investment with cash. 9. Sold buildings and equipment for cash. 10. Sold merchandise to customers. Instructions Classify each transaction as either (a) an operating activity, (b) an investing activity, (c) a financing activity, or (d) a noncash investing and financing activity.

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the direct method. A. Added in determining cash receipts from customers B. Deducted in determining cash receipts from customers C. Added in determining cash payments to suppliers D. Deducted in determining cash payments to suppliers E. Cash outflow-investing activity F. Cash inflow-investing activity G. Cash outflow-financing activity H. Cash inflow-financing activity I. Significant noncash investing and financing activity J. Is not shown ____ 1. Decrease in accounts payable during a period. ____ 2. Declaration and payment of a cash dividend. ____ 3. Decrease in accounts receivable during a period. ____ 4. Depreciation expense. ____ 5. Conversion of bonds payable into common stock. ____ 6. Decrease in merchandise inventory during a period. ____ 7. Sale of equipment for cash at book value. ____ 8. Issuance of preferred stock for cash. ____ 9. Purchase of land for cash. ____ 10. Loss on sale of a plant asset.

Which of the following adjustments to convert net income to net cash provided by operating activities is not added to net income?

Which of the following would not be needed to determine net cash provided by operating activities?

The best measure of a company's ability to generate sufficient cash to continue as a going concern is net cash provided by

Flynn Company reported a net loss of $30,000 for the year ended December 31, 2010. During the year, accounts receivable decreased $15,000, merchandise inventory increased $24,000, accounts payable increased by $30,000, and depreciation expense of $15,000 was recorded. During 2010, operating activities

Using the indirect method, an increase in accounts receivable during a period is deducted from net income in calculating cash provided by operations.