Exam 5: Communicating and Interpreting Accounting Information

The sales revenue reported on the income statement for 20A totaled $96,000, of which one third was on credit. The 20A beginning balance of trade receivables was zero and the 20A ending balance reported on the statement of financial position was $10,000; therefore, the 20A cash inflow from customer sales was $86,000.

Short-term investments in marketable equity securities are considered the equivalent of cash (i.e., they are combined with cash) in preparing the statement of cash flows.

Toga Corporation reported profit of $50,000 for the year. During the year, trade receivables increased by $8,000, trade payables decreased by $4,000 and depreciation expense of $6,000 was recorded. Net cash provided by operating activities for the year, using the indirect method, is

The income statement, statement of financial position and statement of cash flows all are prepared on the accrual basis.

Trade receivables arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. Profit reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities, prepared using the indirect method, is

In 2013, C Co. disclosed cash paid for property, plant and equipment of $1.069 million and cash flow from operations of $3.883 million. Their average property, plant and equipment from the comparative statement of financial position was $3.968 million. Compute C Co.'s capital expenditures ratio for 2013.

The 20B income statement for Ryan Corporation showed the following: What was the cash flow from operating activities?