Question 1

The income statement and selected balance sheet information for Fudnuddler Corporation for the year ended December 31,2014 is presented below.   a.Prepare the cash flows from operating activities section of the 2014 statement of cash flows using the indirect method.
b.Comment on the reasons for the net cash flow from operating activities.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> b.Operating activities provided $53,000...

Question 2

The spreadsheet approach to preparing a statement of cash flows includes all of the following except:

Accepted Answer

A)  a debit to intangible assets and a credit to cash flow from investing activities for the purchase of licensing rights.
B)  a decrease in cash flow from operating activities if prepayments exceed amounts expensed.
C)  an increase in cash flow from operating activities if more inventory is purchased than sold.
D)  a credit to contributed capital and a debit to cash flow from investing activities for proceeds of a stock issuance.E) A) and D)
F) None of the above

Question 3

Using the indirect method,which of the following would be added to net income?

Accepted Answer

A)  A decrease in supplies.
B)  An increase in prepaid insurance.
C)  A decrease in wages payable.
D)  An increase in property,plant and equipment.E) A) and B)
F) All of the above

Question 4

Use the information above to answer the following question.What is the net cash provided by (used in) operating activities?

Accepted Answer

A)  $15,000
B)  $6,000
C)  ($4,000) 
D)  ($75,000) E) A) and B)
F) None of the above

Question 5

Company X paid Company Y $1.35 million for a new plant.During the same accounting period,Company X experienced the following changes in its balance sheet: Cash decreased by $350,000,Accounts Receivable increased by $321,300,Inventory increased by $275,800,Property,Plant,and Equipment increased by $752,900,and Bonds Payable increased by $1 million.The net cash flow from financing activities is:

Accepted Answer

A)  An inflow of $1.35 million.
B)  An outflow of $350,000.
C)  An inflow of $1 million.
D)  An inflow of $752,900.E) A) and B)
F) B) and C)

Question 6

If the calculation of cash flows from operating activities starts with net income,the company:

Accepted Answer

A)  is using the net income method.
B)  will remove the effects of all noncash items included in the calculation of net income.
C)  is using the direct method.
D)  will add all noncash items not included in the calculation of net income.E) A) and B)
F) A) and C)

Question 7

If wages expense is $450,000 and the beginning and ending balances of wages payable are $18,000 and $16,500,respectively,the cash paid to employees is:

Accepted Answer

A)  $450,000
B)  $433,500
C)  $448,500
D)  $451,500E) A) and D)
F) B) and D)

Exam 12: Statement of Cash Flows

Correct Answer
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b.Operating activities provided $53,000...
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Correct Answer
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Use the information above to answer the following question.What is the net cash provided by (used in) operating activities?

Correct Answer
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The spreadsheet approach to preparing a statement of cash flows includes all of the following except:

Correct Answer
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If the calculation of cash flows from operating activities starts with net income,the company:

Correct Answer
verified

If wages expense is $450,000 and the beginning and ending balances of wages payable are $18,000 and $16,500,respectively,the cash paid to employees is:

Correct Answer
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Using the indirect method,which of the following would be added to net income?

Correct Answer
verified

Exam 12: Statement of Cash Flows

Correct Answerverified b.Operating activities provided $53,000...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Use the information above to answer the following question.What is the net cash provided by (used in) operating activities?

Correct AnswerverifiedShow Answer

The spreadsheet approach to preparing a statement of cash flows includes all of the following except:

Correct AnswerverifiedShow Answer

If the calculation of cash flows from operating activities starts with net income,the company:

Correct AnswerverifiedShow Answer

If wages expense is $450,000 and the beginning and ending balances of wages payable are $18,000 and $16,500,respectively,the cash paid to employees is:

Correct AnswerverifiedShow Answer

Using the indirect method,which of the following would be added to net income?

Correct AnswerverifiedShow Answer

Correct Answer
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b.Operating activities provided $53,000...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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