FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: Reporting and Interpreting the Statement of Cash Flows

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

Multiple Choice

Review LaterAdd Note

Review Later

The net cash flow provided by operating activities is an inflow of $37,042,the net cash flow used in investing activities is $16,831,and the net cash flow used in financing activities is $26,397.If the beginning cash account balance is $11,283,what is the ending cash account balance?

A) $5,097
B) ($6,186)
C) $38,759
D) $27,476

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

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

The Viviana Co.uses the indirect method to determine its cash flow from operations.Which of the following items will be subtracted from net income to find its cash flow from operations?

A) Decrease in Supplies
B) Increase in Accounts Payable
C) Depreciation Expense
D) Increase in Accounts Receivable.

E) A) and D)
F) B) and D)

Correct Answer

verified

Show Answer

Question 63

Essay

Review LaterAdd Note

The management team of Wickersham Brothers Inc.is preparing its annual financial statements.The statements are complete except for the statement of cash flows.The completed comparative balance sheets and income statements are summarized. Other information from the company's records includes the following: -Bought equipment for cash,$50,000. -Paid $10,000 on long-term note payable. -Issued new shares of common stock for $20,000 cash. -Cash dividends of $16,000 were declared and paid to stockholders. -Accounts Payable arose from inventory purchases on credit. -Income Tax Expense ($4,000)and Interest Expense ($3,000)were paid in full at the end of both years and are included in Other Expenses. Required: Part a.Prepare the statement of cash flows using the indirect method.Include any supplemental disclosures. Part b.Interpret the statement of cash flows by explaining the main sources and uses of cash during the year.

When the indirect method is used,if accounts receivable increases during the accounting period,the change in accounts receivable is:

If Cost of Goods Sold is $145,000 and the beginning and ending Inventory balances are $18,000 and $13,000,respectively,inventory purchases equal:

Flynn Corporation had the following cash flows for the current year.The company uses the direct method in preparing the statement of cash flows. -Use the information above to answer the following question.If the cash balance at the beginning of the current year was $0,what is the amount of cash at the end of the year?

Which of the following statements about the reporting of operating cash flows using the direct method is correct?

A company loaned $1,000,000 with interest at 7% to another company.The interest revenue from this loan would be reported on the statement of cash flows as a:

Which of the following statements about preparation of the statement of cash flows is correct?

If a company uses the indirect method to determine cash flows from operating activities,gains:

Brighton,Inc.uses the indirect method to determine its cash flow from operations.During the course of the year,Brighton,Inc.'s Accounts Receivable increased by $10,000 and its Accounts Payable decreased by $5,000.As a result of these two items,the net addition (or subtraction) to convert net income to cash flow from operations equals:

The following information is taken from the income statement of Muir Company: Based on this information,what is the amount of net cash flow provided by operating activities?

Choose the appropriate letter to match the account balance change with the type of adjustment made to net income when using the indirect method to determine net cash flow provided by operating activities. Account Balance Change 1._____ Decrease in Property,Plant,and Equipment 2._____ Increase in Accounts Receivable 3._____ Decrease in Inventory 4._____ Decrease in Prepaid Expenses 5._____ Increase in Accounts Payable 6._____ Decrease in Accrued Liabilities 7._____ Decrease in Income Tax Payable 8._____ Increase in Dividends Payable 9._____ Gain on Sales of Property,Plant and Equipment 10._____ Depreciation Type of Adjustment A - Add item to net income S - Subtract item from net income N - No adjustment necessary

Which of the following would be classified as an operating activity on the statement of cash flows using the direct method?

In determining cash flows related to investing activities,which accounts are analyzed?

Chino Company reported net income of $20,000 for the current year.During the year,Inventory decreased by $7,000,Accounts Payable decreased by $8,000,Depreciation Expense was $10,000,and Accounts Receivable increased by $6,500.If the indirect method is used,what is the net cash provided by operating activities?

If a company's Sales Revenue was $171,356 and cash collected from customers was $167,803,which of the following would be consistent with this difference?

A corporation had a net increase in Retained Earnings of $65,000 for the year.The corporation also paid $20,000 of cash dividends that had been declared in the previous year.This year,the corporation declared $18,000 of dividends but has not paid them as of year-end.Given this information,the net income for the current year must have been:

Which of the following represent cash outflows from financing activities?

Free cash flow may be used for all of the following except: