Exam 5: Statement of Cash Flows and Articulation

Stiggins Corporation had the following account balances for 2011: Stiggins' 2011 net income is $450,000. What amount should Stiggins include as net cash provided by operating activities in its 2011 statement of cash flows?

EMD, Inc., has the following comparative balance sheets and income statement available for your examination: Additional information: Prepare a statement of cash flows for EMD, Inc., for 2011 employing the indirect method of identifying cash flows from operating activities.

In a statement of cash flows, proceeds from the sale of a company's own bonds or mortgages should be classified as cash inflows from

Net income for Trent Company for 2011 includes the effect of the following transactions involving the sale of fixed assets: Purchases of fixed assets during 2011 amounted to $340,000. The Accumulated Depreciation account increased $40,000 during 2011. How much was depreciation expense for 2011?

The following information was taken from the 2011 financial statements of Winchester Corporation: No accounts receivable were written off or recovered during the year. If Winchester prepares a statement of cash flows using the direct method, what amount should be reported as collected from customers in 2011?

A comparative balance sheet for Bell Industries is given below: Additional data from the company's records were: Prepare a cash flow statement for Bell Industries for the year ended December 31, 2011, using the indirect method. Include any necessary supplemental disclosures.

In a statement of cash flows (indirect method), an increase in inventories should be presented as

During 2011, Franklin Company reported revenues on an accrual basis of $70,000. Accounts receivable decreased during the year from $35,000 at the beginning to $24,500 at the end. How much cash was provided by collections from customers during the year?

Supplemental disclosures required only when the statement of cash flows is prepared using the indirect method include

Cash inflows from investing result from

Pecan Company sold a computer for $50,000. The computer's original cost was $250,000, and the accumulated depreciation at the date of sale was $180,000. The sale of the computer should appear on Pecan's annual statement of cash flows (indirect method) as

During the year, Smith Company reported net income of $300,000, including amortization of intangible assets of $66,000, depreciation of plant assets of $132,000, and amortization of premium on investment in bonds of $20,000. Applying the indirect method, cash provided by operating activities is what amount?

Which of the following is not classified as a cash outflow from operating activities?

The following information is available from Ram Corporation's accounting records for the year ended December 31, 2011: Net cash flow provided by operating activities for 2011 was

Atkin Corporation provides the following account balances for 2011and 2010:

The most likely situation in which reported earnings are positive but operations are consuming rather than generating cash would be a

Detmer Company's prepaid rent was $40,000 at December 31, 2011, and $15,000 at December 31, 2010. Detmer's income statement for 2011 reported rent expense as $10,000. What amount of cash disbursements for rent would be reported in Detmer's net cash flows from operating activities for 2011 presented on a direct basis?

In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for

Which of the following is not a cash inflow from investing activities?

Partial balance sheet data and additional information for Ernst Company are listed below: Additional Information: Compute the amount of cash paid in 2011 for inventory purchases.