FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: Statement of Cash Flows

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

True/False

Review LaterAdd Note

Review Later

Cash, as the term is used for the statement of cash flows, could indicate either cash or cash equivalents.

A) True
B) False

Correct Answer

verified

Show Answer

Question 72

Short Answer

Review LaterAdd Note

Review Later

On the basis of the following data for Branch Co. for the current and preceding years ended December 31, prepare a statement of cash flows using the indirect method.   Assume that equipment costing $125,000 was purchased for cash and the land was sold for $15,000. The stock was issued for cash and the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared and paid of $18,000.

Correct Answer

verified

Show Answer

Question 73

Short Answer

Review LaterAdd Note

The following two scenarios are independent of one another.   (a) An analysis of the general ledger accounts indicates that office equipment was sold for $39,600 during the year.  The equipment originally cost $68,000 and had accumulated depreciation of $22,500 on the date of sale.  Indicate how the elements of this transaction would be reported on the statement of cash flows using the indirect method. (b) An analysis of the general ledger accounts indicates that delivery equipment, which cost $97,000 and on which accumulated depreciation totaled $42,100 on the date of sale, was sold for $57,500 during the year.  Using this information, indicate the items to be reported on the statement of cash flows.

A major disadvantage of the indirect method of reporting cash flows from operating activities is that the difference between the net amount of cash flows from operating activities and net income is emphasized.

Land costing $140,000 was sold for $173,000 cash.  The gain on the sale was reported on the income statement as other income.  On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

Under GAAP, cash receipts from interest and dividends are classified as

Net income for the year was $45,500. Accounts receivable increased $5,500, and account payable increased by $11,200. Under the indirect method, the cash flow from operations is

The following selected account balances appeared on the financial statements of the Washington Company: The Washington Company uses the direct method to calculate net cash flow from operating activities. Cash payments for merchandise were

The board of directors declared cash dividends total $168,000 during the year.  The comparative balance sheet indicated dividends payable of $46,000 at the beginning of the year and $42,000 at the end of the year.  What was the amount of cash payments to stockholders during the year?

If land costing $145,000 was sold for $205,000, the $60,000 gain on the sale would be added to net income in the operating activities section of the statement of cash flows (prepared by the indirect method).

Preferred stock issued in exchange for land would be reported in the statement of cash flows in

The net income reported on the income statement for the current year was $250,000.  Depreciation recorded on fixed assets and amortization of patents for the year were $40,000, and $9,000, respectively.  Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method?

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows: Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.

The following selected account balances appeared on the financial statements of the Washington Company: The Washington Company uses the direct method to calculate net cash flow from operating activities. Cash collections from customers were

Which of the following can be found on the statement of cash flows?

A business issues 20-year bonds payable in exchange for preferred stock.  This transaction would be reported on the statement of cash flows in

Free cash flow is

Net income was $51,000 for the year.  The accumulated depreciation balance increased by $14,000 over the year.  There were no sales of fixed assets or changes in noncash current assets or liabilities.  Under the indirect method, the cash flow from operations is $37,000.

If a gain of $11,000 is realized in selling (for cash) office equipment having a book value of $55,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is