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Maritime Marine Services Selected data from the financial statements for the years ended December 31, 2020 and 2019, are presented below: Maritime Marine Services Selected data from the financial statements for the years ended December 31, 2020 and 2019, are presented below: The following additional information was obtained from the company's records: -Refer to Maritime Marine Services. What was the amount of cash dividends paid during 2020? The following additional information was obtained from the company's records: -Refer to Maritime Marine Services. What was the amount of cash dividends paid during 2020?

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$308
$3,426 (Retained earnings...

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Mary Kay Cosmetics Selected data and additional information from the company's records are presented below: Mary Kay Cosmetics Selected data and additional information from the company's records are presented below: Additional information: -Refer to Mary Kay Cosmetics. Prepare the operating activities section of a statement of cash flows for 2020 assuming the use of the indirect method of determining net cash flow from operating activities. Additional information: -Refer to Mary Kay Cosmetics. Prepare the operating activities section of a statement of cash flows for 2020 assuming the use of the indirect method of determining net cash flow from operating activities.

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Use the following codes to indicate how the cash flow effect, if any, of each transaction would be reported on a statement of cash flows if the operating activities section is prepared using the direct method. (Choices may be used more than once.) -Sold office building for cash.


A) Inflow from operating activity
B) Outflow from operating activity
C) Inflow from investing activity
D) Outflow from investing activity
E) Inflow from financing activity
F) Outflow from financing activity
G) Noncash investing and financing activity
H) Not reported on statement of cash flows

I) E) and F)
J) E) and G)

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When using the indirect method to determine operating cash flows, how is the issuance of stock to retire a long-term debt shown on a statement of cash flows?


A) operating activity
B) investing activity
C) financing activity
D) noncash investing or financing activity
E) not reported on the statement of cash flows

F) All of the above
G) C) and D)

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Match these terms with their correct definition. -Include cash received from the sale of property, plant, and equipment and cash paid to purchase equity securities.


A) Cash flow adequacy ratio
B) Cash flows from financing activities
C) Cash flows from investing activities
D) Cash flow from operating activities
E) Direct method
F) Free cash flow
G) Income statement
H) Indirect method
I) Noncash investing & financing activities
J) Statement of cash flows

K) D) and J)
L) H) and I)

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The use of a ______________ provides a means of systematically analyzing changes in the balance sheet amounts, along with the information from the income statement and any additional information, to produce the statement of cash flows.

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spreadshee...

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Mary Kay Cosmetics Selected data and additional information from the company's records are presented below: Mary Kay Cosmetics Selected data and additional information from the company's records are presented below: Additional information: -Refer to Mary Kay Cosmetics. What is the amount paid for operating expenses during 2020? Additional information: -Refer to Mary Kay Cosmetics. What is the amount paid for operating expenses during 2020?

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$155,000
$160,000 (Operating e...

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Cash flows from borrowing and paying off a 90-day bank loan are classified as


A) operating activities.
B) investing activities.
C) financing activities.
D) purchasing activities.

E) B) and C)
F) All of the above

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


A) the direct method
B) the indirect method
C) Both the direct and indirect methods.
D) Neither the direct method nor the indirect method.

E) All of the above
F) None of the above

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Midtown Diner, Inc., purchased $10,000 of paper napkins for its restaurants. At the end of the period, three-fourths of the bill for the napkins is unpaid while an inventory revealed that 40% of the napkins were still on hand. What combination of amounts would affect the income statement and statement of cash flows? Midtown Diner, Inc., purchased $10,000 of paper napkins for its restaurants. At the end of the period, three-fourths of the bill for the napkins is unpaid while an inventory revealed that 40% of the napkins were still on hand. What combination of amounts would affect the income statement and statement of cash flows?

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McCullow Investment Group One of the firm's financial analysts is assessing the performance of three particular companies whose cash flow statements for the last three years are presented below: McCullow Investment Group One of the firm's financial analysts is assessing the performance of three particular companies whose cash flow statements for the last three years are presented below: -Refer to Merry Maids Company. Describe the link(s) between a statement of cash flows, the balance sheet, and the income statement if a company uses the indirect method to prepare the operating activities section of the statement of cash flows. -Refer to Merry Maids Company. Describe the link(s) between a statement of cash flows, the balance sheet, and the income statement if a company uses the indirect method to prepare the operating activities section of the statement of cash flows.

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The net increase or decrease on the stat...

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Use the following codes to indicate how the cash flow effect, if any, of each transaction or event would be reported on a statement of cash flows if the operating activities section is prepared using the indirect method. (Choices may be used more than once.) -Recognized a gain on the sale of securities.


A) Operating activity--add to net income
B) Operating activity--deduct from net income
C) Inflow from investing activity
D) Outflow from investing activity
E) Inflow from financing activity
F) Outflow from financing activity
G) Noncash investing and financing activity
H) Not reported on statement of cash flows

I) D) and H)
J) D) and E)

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Metz Vets The company’s accountant prepared this reminder for his intern: Cash = CL + LTL + CS + RE ? NCCA ? LTA where: CL = Current liabilities LTL = Long-term liabilities CS = Common stock RE = Retained earnings NCCA = Noncash current assets LTA = Long-term assets -Refer to Metz Vets. Which of the following activities results in a cash inflow?


A) increases in noncash current assets (NCCA)
B) decreases in current liabilities (CL)
C) increases in common stock (CS)
D) decreases in retained earnings (RE)

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

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Each of the following transactions would be classified as an investing activity except:


A) Acquiring an investment in the stock of another company.
B) Lending money to a supplier.
C) Receiving dividends on an investment in the stock of another company.
D) Disposing of land

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

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Mary Kay Cosmetics Selected data and additional information from the company's records are presented below: Mary Kay Cosmetics Selected data and additional information from the company's records are presented below: Additional information: -Refer to Mary Kay Cosmetics. What amount of cash was collected from customers during 2020? Additional information: -Refer to Mary Kay Cosmetics. What amount of cash was collected from customers during 2020?

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$950,000
$920,000 (Sales) + $1...

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Mary Kay Cosmetics Selected data and additional information from the company's records are presented below: Mary Kay Cosmetics Selected data and additional information from the company's records are presented below: Additional information: -Refer to Mary Kay Cosmetics. Prepare the company's statement of cash flows for the year ended December 31, 2020. Use the indirect method of determining net cash flows from operating activities. Additional information: -Refer to Mary Kay Cosmetics. Prepare the company's statement of cash flows for the year ended December 31, 2020. Use the indirect method of determining net cash flows from operating activities.

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Mary Kay Cosmetics Selected data and additional information from the company's records are presented below: Mary Kay Cosmetics Selected data and additional information from the company's records are presented below: Additional information: -Refer to Mary Kay Cosmetics. Prepare the operating activities section of the statement of cash flows for 2020 assuming the direct method is used to determine net cash flow from operating activities. Additional information: -Refer to Mary Kay Cosmetics. Prepare the operating activities section of the statement of cash flows for 2020 assuming the direct method is used to determine net cash flow from operating activities.

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A company reported net income for the current year. Which of the following business transactions would cause its cash from operating activities to be higher than its net income?


A) Cash dividends were paid to stockholders during the year.
B) Depreciation expense was recorded for the year.
C) A bank loan was repaid during the year.
D) Equipment was purchased for cash during the year.

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

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Which of the following measures can be used to evaluate a company's ability to meet future debt obligations after paying operating expenses, dividends and making capital expenditures?


A) earnings per share
B) net income
C) cash flow adequacy ratio
D) net increase or decrease in cash and cash equivalents

E) All of the above
F) B) and C)

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Upon review of a statement of cash flows, the following was noted: Upon review of a statement of cash flows, the following was noted: From this information, it is likely that the company is A) using cash from operations and selling long-term assets to pay back debt B) using cash from operations and borrowing to purchase long-term assets. C) using its profits to expand growth. D) using cash from investors to provide for operations. From this information, it is likely that the company is


A) using cash from operations and selling long-term assets to pay back debt
B) using cash from operations and borrowing to purchase long-term assets.
C) using its profits to expand growth.
D) using cash from investors to provide for operations.

E) A) and B)
F) A) and C)

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