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Exam 13: Statement of Cash Flows

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Question 21

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Durrand Corporation's accumulated depreciation increased by $12,000,while patents decreased by $2,200 between consecutive balance sheet dates.There were no purchases or sales of depreciable or intangible assets during the year.In addition,the income statement showed a gain of $4,300 from sale of land.Reconcile a net income of $65,000 to net cash flow from operating activities.

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Question 22

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The direct method of preparing the operating activities section of the statement of cash flows reports major classes of cash receipts and cash payments related to the day-to-day operations of the business.

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Question 23

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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 net income reported on the income statement for the current year was $275,000.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?

If accounts payable have increased during a period,

Which of the following should be shown on a statement of cash flows under the financing activities section?

​Firefly Inc.sold land for $225,000 cash.The land had been purchased five years earlier for $275,000.The loss on the sale was reported on the income statement.On the statement of cash flows,what amount should Firefly report as an investing activity from the sale of the land?

To determine cash payments for operating expenses for the statement of cash flows using the direct method,a decrease in accrued expenses is added to operating expenses other than depreciation.

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 for the current year 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.

The income statement disclosed the following items for the current year: ​ ​ Balances of the current assets and current liabilities accounts changed between December 31,last year,and December 31,this year,as follows: ​ ​ Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

The cash flows from operating activities are reported by the direct method on the statement of cash flows.Determine the following:

Accounts receivable from sales to customers amounted to $40,000 and $32,000 at the beginning and end of the year,respectively.Income reported on the income statement for the year was $110,000.Exclusive of the effect of other adjustments,the net cash flows from operating activities to be reported on the statement of cash flows using the indirect method is

Identify the section of the statement of cash flows (a-d) where each of the following items would be reported. -Purchase of the stock of another company as investment

Identify the section of the statement of cash flows (a-d) where each of the following items would be reported. -Exchange of land for note payable

Cash flows from investing activities,as part of the statement of cash flows,would include any payments for the purchase of treasury stock.

On the statement of cash flows,the cash flows from investing activities section would include

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?

The following information is available from the current period financial statements: ​ The net cash flow from operating activities using the indirect method is

Identify the section of the statement of cash flows (a-d) where each of the following items would be reported. -Loss on sale of equipment

On the statement of cash flows prepared by the indirect method,the cash flows from operating activities section would include