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Klicker Corporation's most recent balance sheet appears below: Klicker Corporation's most recent balance sheet appears below: The company's net income for the year was $152 and it did not issue any bonds or repurchase any of its common stock during the year.Cash dividends were $40.The net cash provided by (used in) financing activities for the year was: A) ($49) B) ($40) C) $4 D) ($13) The company's net income for the year was $152 and it did not issue any bonds or repurchase any of its common stock during the year.Cash dividends were $40.The net cash provided by (used in) financing activities for the year was:


A) ($49)
B) ($40)
C) $4
D) ($13)

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

Correct Answer

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The ending and beginning balances of Farmer Corporation's balance sheet accounts for the most recent year are listed below: The ending and beginning balances of Farmer Corporation's balance sheet accounts for the most recent year are listed below: The company's net income (loss)for the year was $0 and its cash dividends were $4,000.It did not dispose of any property, plant, and equipment, retire any bonds payable, or repurchase any of its own common stock during the year. Required: Compute the change in each balance sheet account in the below table.Indicate whether the change in each balance will be recorded in the operating, investing, or financing activities section of the statement of cash flows.For items recorded in the operating activities section, also indicate whether the change will be added to or subtracted from net income.For all other items, indicate whether the change will be added as a cash inflow or subtracted as a cash outflow.The first entry has been filled in as an example. The company's net income (loss)for the year was $0 and its cash dividends were $4,000.It did not dispose of any property, plant, and equipment, retire any bonds payable, or repurchase any of its own common stock during the year. Required: Compute the change in each balance sheet account in the below table.Indicate whether the change in each balance will be recorded in the operating, investing, or financing activities section of the statement of cash flows.For items recorded in the operating activities section, also indicate whether the change will be added to or subtracted from net income.For all other items, indicate whether the change will be added as a cash inflow or subtracted as a cash outflow.The first entry has been filled in as an example. The ending and beginning balances of Farmer Corporation's balance sheet accounts for the most recent year are listed below: The company's net income (loss)for the year was $0 and its cash dividends were $4,000.It did not dispose of any property, plant, and equipment, retire any bonds payable, or repurchase any of its own common stock during the year. Required: Compute the change in each balance sheet account in the below table.Indicate whether the change in each balance will be recorded in the operating, investing, or financing activities section of the statement of cash flows.For items recorded in the operating activities section, also indicate whether the change will be added to or subtracted from net income.For all other items, indicate whether the change will be added as a cash inflow or subtracted as a cash outflow.The first entry has been filled in as an example.

Correct Answer

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Which of the following is correct regarding the operating activities section of the statement of cash flows?


A) The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be subtracted from net income
B) The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be added to net income
C) The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be subtracted from net income
D) The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be added to net income

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

Correct Answer

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In a statement of cash flows, issuing bonds payable affects the:


A) operating activities section.
B) financing activities section.
C) investing activities section.
D) free cash flow activities section.

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

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Which of the following is correct regarding the operating activities section of the statement of cash flows?


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

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

Correct Answer

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Negative free cash flow does not automatically signal poor performance.

A) True
B) False

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Cash payments to repay the principal amount of debt are reported as a cash outflow in the investing activities section of the statement of cash flows.

A) True
B) False

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

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The free cash flow for the year was:


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

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

Correct Answer

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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.Construct in good form the operating activities section of the company's statement of cash flows for the year.(Use the indirect method.) b.Construct in good form the investing activities section of the company's statement of cash flows for the year. c.Construct in good form 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.Construct in good form the operating activities section of the company's statement of cash flows for the year.(Use the indirect method.) b.Construct in good form the investing activities section of the company's statement of cash flows for the year. c.Construct in good form the financing activities section of the company's statement of cash flows for the year.

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a.Operating activities: blured image_TB262...

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Cash equivalents on the statement of cash flows consist of any investment that can be converted into cash within one year.

A) True
B) False

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Paying taxes to governmental bodies is considered a cash outflow in the operating activities section on the statement of cash flows.

A) True
B) False

Correct Answer

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The company's net cash provided by (used in) operating activities is:


A) $48,000
B) $18,000
C) $40,000
D) $52,000

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

Correct Answer

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The net cash provided by (used in) financing activities last year was:


A) $(46,000)
B) $46,000
C) $(10,000)
D) $10,000

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

Correct Answer

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What is Stone's net cash provided by (used in) financing activities?


A) $(20,000)
B) $(15,000)
C) $5,000
D) $65,000

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

Correct Answer

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The net cash provided by (used in) investing activities for the year was:


A) $100,000
B) $(100,000)
C) $(400,000)
D) $400,000

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

Correct Answer

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The net cash provided by (used in) investing activities last year was:


A) $30,000
B) $(30,000)
C) $(40,000)
D) $40,000

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

Correct Answer

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In a statement of cash flows, the sale of a long-term investment would ordinarily be classified as:


A) an operating activity.
B) a financing activity.
C) an investing activity.
D) a lending activity.

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

Correct Answer

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Investing activities on the statement of cash flows generate cash inflows and outflows related to borrowing from and repaying principal to creditors and completing transactions with the company's owners such as selling or repurchasing shares of common stocks and paying dividends.

A) True
B) False

Correct Answer

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Suggett Corporation's net cash provided by operating activities was $34; its income taxes were $12; its capital expenditures were $24; and its cash dividends were $7.The company's free cash flow was:


A) $(19)
B) $77
C) $3
D) $15

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

Correct Answer

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