Exam 3: Income Flows Versus Cash Flows: Understanding the Statement of Cash Flows

Listed below is a list of cash inflows and cash outflows for Toggle Inc. 1. Cash received from issuing debt 2. Cash received from interest earned on a bond investment 3. Cash used to purchase property 4. Cash used to repay debt 5. Cash received from collections of loans 6. Cash paid for retiring common stock 7. Cash paid to employees for salaries 8. Cash from the sale of marketable securities 9. Cash used to pay dividends 10. Cash from the sale of services to customers 11. Cash paid to government agencies for taxes 12. Cash received from the sale of equipment For each item indicate where it should appear on Toggle's statement of cash flows. Select from: a. Cash inflows from operating activities b. Cash outflows from operating activities c. Cash inflows from investing activities d. Cash outflows from investing activities e. Cash inflows from financing activities f. Cash outflows from financing activities

Discuss the correlations that have been found between net income, net income plus or minus Type 1 adjustments (i.e., adjustments to net income for revenues, expenses, gains, and losses that are recognized in income and are associated with changes in noncurrent assets, noncurrent liabilities, and shareholders' equity, but do not affect cash by the same amounts for the period), and cash flow from operations.

All of the following are firms that may experience a long lag between the expenditures of cash and the receipt of cash from customers, except:.

The issuance of debt would be classified as a (an) ____________________ activity in the statement of cash flows.

The financial statements for Warren Company show the following: Cost of goods sold $725,000 Begiuning Balance Eurling Bnlance Merchandise Inventory \ 45,000 \5 6,000 Accounts Receivable 53,000 50,000 Accounts Payable 37,000 42,000 Based on this information, cash paid for merchandise was

Outback Corp. recorded sales of $1,300,000 in 2010, in addition the company's accounts receivable balance grew from $120,000 at the beginning of 2010 to $165,000 at the end of 2010. How much cash did Outback collect from customers in 2010?