FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 21: A Statement of Cash Flows

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

Last year Lawn Corporation reported sales of $115,000 on its income statement.During the year, accounts receivable decreased by $10,000 and accounts payable increased by $15,000.The company uses the direct method to determine the net cash provided by (used in) operating activities on the statement of cash flows.The sales revenue adjusted to a cash basis for the year would be:

A) $125,000
B) $90,000
C) $140,000
D) $100,000

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

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

Last year Marton Corporation reported a cost of goods sold of $720,000 on its income statement.The following additional data were taken from the company's comparative balance sheet for 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) $740,000
B) $767,000
C) $747,000
D) $673,000

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

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Cridberg Corporation's selling and administrative expenses for last year totaled $260,000.During the year the company's prepaid expense account balance increased by $18,000 and accrued liabilities decreased by $12,000.Depreciation for the year was $25,000.Based on this information, selling and administrative expenses adjusted to a cash basis under the direct method on the statement of cash flows would be:

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

Brew Corporation's most recent comparative balance sheet and income statement appear below: Cash dividends were $37.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:

Comparative balance sheets and the income statements for Ellis Corporation are presented below: The following additional information is available for the year: * During the year, the company sold long-term investments for $35,500 that had been purchased for $38,000. * The company did not sell any property, plant, and equipment during the year or repurchase any of its own common stock. * All sales were on credit. * The company paid a cash dividend of $25,000. * The company paid cash to retire $15,000 of bonds payable. Required: a.Using the indirect method, determine the net cash provided by (used in)operating activities. b.Using the direct method, determine the net cash provided by (used in)operating activities. c.Using the net cash provided by (used in)operating activities amount from either part a or b, prepare a statement of cash flows.

Dorris Corporation's balance sheet and income statement appear below: Cash dividends were $7.The company sold equipment for $18 that was originally purchased for $8 and that had accumulated depreciation of $6.The net cash provided by (used in) operating activities for the year was:

If accounts receivable increase during a period, then the amount of cash collected from customers will be less than the amount of sales reported on the income statement for the period.

Using the direct method, the cost of goods sold adjusted to a cash basis would be:

On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be:

LFM Corporation reported cost of goods sold on its income statement of $15,000.The following account balances appeared on the company's comparative balance sheet for the same year: The company uses the direct method to determine the net cash provided by (used in) operating activities.The cost of goods sold, adjusted to a cash basis, on the company's statement of cash flows for the year would be:

On the statement of cash flows, the income tax expense adjusted to a cash basis would be:

Sales reported on the income statement totaled $750,000.The beginning balance in accounts receivable was $70,000.The ending balance in accounts receivable was $80,000.Under the direct method of determining the net cash provided by (used in) operating activities on the statement of cash flows, sales adjusted to a cash basis are:

Under the direct method of determining the net cash provided by (used in)operating activities on the statement of cash flows, a decrease in prepaid expenses would be added to selling and administrative expenses to convert selling and administrative expenses to a cash basis.

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:

Last year Cumberland Corporation reported a cost of goods sold of $120,000.Inventories increased by $35,000 during the year, and accounts payable increased by $20,000.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:

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

The changes in each balance sheet account for Carver Corporation during the year just completed are as follows: Carver Corporation's income statement for the year just ended shows the following: The company did not dispose of any property, plant, and equipment, buy any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year.Carver Corporation uses the direct method to construct its statement of cash flows. Required: a.Determine the sales adjusted to the cash basis. b.Determine the cost of goods sold adjusted to the cash basis. c.Determine the selling and administrative expenses adjusted to a cash basis. d.Determine the net cash provided by (used in)operating activities. e.Determine the net cash provided by (used in)investing activities. f.Determine the net cash provided by (used in)financing activities.

On the statement of cash flows, the sales adjusted to a cash basis would be:

Under the direct method, sales adjusted to a cash basis would be: