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When a company pays a supplier for inventory it has purchased, the cash outflow is recorded in the investing activities section of the statement of cash flows.

A) True
B) False

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Burns Corporation's net income last year was $91,000. Changes in the company's balance sheet accounts for the year appear below: Burns Corporation's net income last year was $91,000. Changes in the company's balance sheet accounts for the year appear below: The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,000.Required:a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.)b. Prepare the investing activities section of the company's statement of cash flows for the year.c. Prepare the financing activities section of the company's statement of cash flows for the year. The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,000.Required:a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.)b. Prepare the investing activities section of the company's statement of cash flows for the year.c. Prepare the financing activities section of the company's statement of cash flows for the year.

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a.Operatin...

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Autry Corporation's balance sheet and income statement appear below: Autry Corporation's balance sheet and income statement appear below: Cash dividends were $40. The company sold equipment for $19 that was originally purchased for $6 and that had accumulated depreciation of $4. The net cash provided by (used in) investing activities for the year was: A) $19 B) $140 C) ($159) D) ($140) Cash dividends were $40. The company sold equipment for $19 that was originally purchased for $6 and that had accumulated depreciation of $4. The net cash provided by (used in) investing activities for the year was:


A) $19
B) $140
C) ($159)
D) ($140)

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

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Megan Corporation's net income last year was $98,000. Changes in the company's balance sheet accounts for the year appear below: Megan Corporation's net income last year was $98,000. Changes in the company's balance sheet accounts for the year appear below: The company paid a cash dividend of $36,000 and it did not dispose of any long-term investments or property, plant, and equipment. The company did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The free cash flow for the year was: A) $123,000 B) $87,000 C) $142,000 D) $269,000 The company paid a cash dividend of $36,000 and it did not dispose of any long-term investments or property, plant, and equipment. The company did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The free cash flow for the year was:


A) $123,000
B) $87,000
C) $142,000
D) $269,000

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

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Alcoser Corporation's most recent balance sheet appears below: Alcoser Corporation's most recent balance sheet appears below: Net income for the year was $60. Cash dividends were $12. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) financing activities for the year was: A) $10 B) $5 C) $(12) D) $17 Net income for the year was $60. Cash dividends were $12. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) financing activities for the year was:


A) $10
B) $5
C) $(12)
D) $17

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

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Van Beeber Corporation's comparative balance sheet and income statement for last year appear below: Van Beeber Corporation's comparative balance sheet and income statement for last year appear below: The company declared and paid $49,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be: A) $360,000 B) $350,000 C) $370,000 D) $381,000 The company declared and paid $49,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be:


A) $360,000
B) $350,000
C) $370,000
D) $381,000

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

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The following events occurred last year at Dorder Corporation: The following events occurred last year at Dorder Corporation: Based on the above information, the net cash provided by (used in) investing activities for the year on the statement of cash flows would be: A) $(21,000) B) $(12,000) C) $(32,000) D) $(69,000) Based on the above information, the net cash provided by (used in) investing activities for the year on the statement of cash flows would be:


A) $(21,000)
B) $(12,000)
C) $(32,000)
D) $(69,000)

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

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Cash payments to insurers and utility providers are considered operating activities on the statement of cash flows.

A) True
B) False

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The change in each of Kendall Corporation's balance sheet accounts last year follows: The change in each of Kendall Corporation's balance sheet accounts last year follows: Kendall Corporation's income statement for the year was: There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in) operating activities on the statement of cash flows is determined using the direct method.The net cash provided by (used in) financing activities would be: A) $(8,000) B) $(13,000) C) $20,000 D) $(3,000) Kendall Corporation's income statement for the year was: The change in each of Kendall Corporation's balance sheet accounts last year follows: Kendall Corporation's income statement for the year was: There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in) operating activities on the statement of cash flows is determined using the direct method.The net cash provided by (used in) financing activities would be: A) $(8,000) B) $(13,000) C) $20,000 D) $(3,000) There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in) operating activities on the statement of cash flows is determined using the direct method.The net cash provided by (used in) financing activities would be:


A) $(8,000)
B) $(13,000)
C) $20,000
D) $(3,000)

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

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Krech Corporation's comparative balance sheet appears below: Krech Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities.The company's net cash provided by (used in) investing activities is: Garrison 16e Rechecks 2017-09-22 A) $(20,000) B) $(5,000) C) $(45,000) D) $(22,000) The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities.The company's net cash provided by (used in) investing activities is: Garrison 16e Rechecks 2017-09-22


A) $(20,000)
B) $(5,000)
C) $(45,000)
D) $(22,000)

E) All of the above
F) A) and D)

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Shimko Corporation's most recent comparative balance sheet and income statement appear below: Shimko Corporation's most recent comparative balance sheet and income statement appear below: The company paid a cash dividend of $19 and it did not dispose of any property, plant, and equipment. The company did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) financing activities for the year was: A) $(19) B) $(53) C) $1 D) $(71) The company paid a cash dividend of $19 and it did not dispose of any property, plant, and equipment. The company did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) financing activities for the year was:


A) $(19)
B) $(53)
C) $1
D) $(71)

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

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The changes in Northrup Corporation's balance sheet account balances for last year appear below: The changes in Northrup Corporation's balance sheet account balances for last year appear below: The company's income statement for the year appears below: The company declared and paid $28,000 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.On the statement of cash flows, the selling and administrative expense adjusted to a cash basis would be: A) $304,000 B) $384,000 C) $310,000 D) $236,000 The company's income statement for the year appears below: The changes in Northrup Corporation's balance sheet account balances for last year appear below: The company's income statement for the year appears below: The company declared and paid $28,000 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.On the statement of cash flows, the selling and administrative expense adjusted to a cash basis would be: A) $304,000 B) $384,000 C) $310,000 D) $236,000 The company declared and paid $28,000 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.On the statement of cash flows, the selling and administrative expense adjusted to a cash basis would be:


A) $304,000
B) $384,000
C) $310,000
D) $236,000

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

Correct Answer

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The changes in Northrup Corporation's balance sheet account balances for last year appear below: The changes in Northrup Corporation's balance sheet account balances for last year appear below: The company's income statement for the year appears below: The company declared and paid $28,000 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be: A) $546,000 B) $536,000 C) $544,000 D) $540,000 The company's income statement for the year appears below: The changes in Northrup Corporation's balance sheet account balances for last year appear below: The company's income statement for the year appears below: The company declared and paid $28,000 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be: A) $546,000 B) $536,000 C) $544,000 D) $540,000 The company declared and paid $28,000 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be:


A) $546,000
B) $536,000
C) $544,000
D) $540,000

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

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Excerpts from Neuwirth Corporation's comparative balance sheet appear below: Excerpts from Neuwirth Corporation's comparative balance sheet appear below: Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method? A) The change in Accounts Receivable is added to net income; The change in Inventory is added to net income B) The change in Accounts Receivable is subtracted from net income; The change in Inventory is added to net income C) The change in Accounts Receivable is added to net income; The change in Inventory is subtracted from net income D) The change in Accounts Receivable is subtracted from net income; The change in Inventory is subtracted from net income Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?


A) The change in Accounts Receivable is added to net income; The change in Inventory is added to net income
B) The change in Accounts Receivable is subtracted from net income; The change in Inventory is added to net income
C) The change in Accounts Receivable is added to net income; The change in Inventory is subtracted from net income
D) The change in Accounts Receivable is subtracted from net income; The change in Inventory is subtracted from net income

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

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Carriveau Corporation's most recent balance sheet appears below: Carriveau Corporation's most recent balance sheet appears below: Net income for the year was $275. Cash dividends were $51. The company did not sell or retire any property, plant, and equipment during the year. The net cash provided by (used in) operating activities for the year was: A) $377 B) $7 C) $282 D) $268 Net income for the year was $275. Cash dividends were $51. The company did not sell or retire any property, plant, and equipment during the year. The net cash provided by (used in) operating activities for the year was:


A) $377
B) $7
C) $282
D) $268

E) All of the above
F) A) and D)

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When a company pays cash to repurchase its own common stock, this is reported as a cash outflow in the financing activities section of the statement of cash flows.

A) True
B) False

Correct Answer

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Walmouth Corporation's comparative balance sheet and income statement for last year appear below: Walmouth Corporation's comparative balance sheet and income statement for last year appear below: The company declared and paid a cash dividend of $54,000 during the year. It did not purchase or dispose of any property, plant, and equipment. It did not issue any bonds or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) operating activities last year was: A) $105,000 B) $58,000 C) $130,000 D) $152,000 The company declared and paid a cash dividend of $54,000 during the year. It did not purchase or dispose of any property, plant, and equipment. It did not issue any bonds or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) operating activities last year was:


A) $105,000
B) $58,000
C) $130,000
D) $152,000

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

Correct Answer

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Cash received from the sale of equipment the company had used in its own operations would be considered an operating activity on a statement of cash flows.

A) True
B) False

Correct Answer

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Tani Corporation's most recent balance sheet appears below: Tani Corporation's most recent balance sheet appears below: The company's net income for the year was $18 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $4. The net cash provided by (used in) investing activities for the year was: A) ($45) B) $45 C) ($3) D) $3 The company's net income for the year was $18 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $4. The net cash provided by (used in) investing activities for the year was:


A) ($45)
B) $45
C) ($3)
D) $3

E) A) and D)
F) All of the above

Correct Answer

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The most recent balance sheet and income statement of Dallavalle Corporation appear below: The most recent balance sheet and income statement of Dallavalle Corporation appear below: Cash dividends were $12. The company did not retire or sell any property, plant, and equipment during the year. The net cash provided by (used in) operating activities for the year was: A) $77 B) $68 C) $40 D) $14 Cash dividends were $12. The company did not retire or sell any property, plant, and equipment during the year. The net cash provided by (used in) operating activities for the year was:


A) $77
B) $68
C) $40
D) $14

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

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