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Exam 16: Reporting the Statement of Cash Flows

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Question 31

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Explain how the cash flows from operating activities section of the statement of cash flows is prepared using the direct method.

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The direct method for reporting cash flo...

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Question 32

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The following information is available for the Eldridge Company: Additional information: (1)There was no gain or loss on the sales of the long-term investments,nor on the bonds retired. (2)Old machinery with an original cost of $45,060 was sold for $2,520 cash. (3)New machinery was purchased for $81,060 cash. (4)Cash dividends of $40,320 were paid. (5)Additional shares of stock were issued for cash. Prepare a complete statement of cash flows for calendar-year 2013 using the indirect method.

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(a) Received from sales of lo...

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Question 33

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___________________ activities include those transactions that affect long-term liabilities and equity.

Explain how cash flows from investing and financing activities are determined.

Based on the following information provided about a company's operations,calculate its cost of goods purchased and its cash paid for merchandise.

Which of the following is included in the cash flows from financing activities section of the statement of cash flows?

Beewell's net income for the year ended December 31,Year 2 was $185,000.Information from Beewell's comparative balance sheets is given below.Compute the cash paid for dividends during Year 2.

Explain how the cash flows from operating activities section of the statement of cash flows is prepared using the indirect method.

The payment of cash dividends never changes the balance of retained earnings.

All of the following statements related to preparation of the statement of cash flows under U.S.GAAP and IFRS are true except:

A company's Inventory balance at 12/31/13 was $188,000 and $200,000 at 12/31/12.Its Accounts Payable balance at 12/31/13 was $84,000 and $80,000 at 12/31/12,and its cost of goods sold for 2013 was $720,000.The company's total amount of cash payments for merchandise in 2013 equals:

Depreciation expense is not reported on a statement of cash flows prepared under the direct method.

Stojko Corporation had a net decrease in cash of $10,000 for the current year.Net cash used in investing activities was $52,000 and net cash used in financing activities was $38,000.What amount of cash was provided (used) in operating activities?

Cash flow amounts and their timing should be considered when planning and analyzing operating activities.

Based on the following income statement and balance sheet for Rashid Corporation,determine the cash flows from operating activities using the indirect method.

For each of the following separate cases,use the information provided to calculate the missing cash inflow or cash outflow using the direct method.

Weston is preparing the company's statement of cash flows for the fiscal year just ended.Using the following information,determine the amount of cash flows from financing activities:

Accounting standards require companies to include a statement of cash flows in a complete set of financial statements.

Based on the information provided below,complete the following worksheet to be used to prepare the statement of cash flows using the indirect method. (a)Net income for the year was $30,000. (b)Dividends of $10,000 were declared and paid. (c)Stylish's only noncash expense was depreciation which totaled $50,000. (d)The company purchased plant assets for $70,000. (e)Notes payable in the amount of $40,000 were issued during the year for cash.

Use the following information to calculate cash received from dividends: