A) all cash in the bank B) cash from operations C) cash from financing less cash used to purchase fixed assets to maintain productive capacity and cash used for dividends D) cash flow from operations less cash used to purchase fixed assets to maintain productive capacity A) all cash in the bank B) cash from operations C) cash from financing less cash used to purchase fixed assets to maintain productive capacity and cash used for dividends D) cash flow from operations less cash used to purchase fixed assets to maintain productive capacity

Exam 14: Statement of Cash Flows

Lamar Corporation purchased land for $150,000. Later in the year, the company sold land with a book value of $190,000 for $200,000. Show how the effects of these transactions are reported on the statement of cash flows using the indirect method.

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Question 1

Correct Answer:

Verified

Adjustments to reconcile net income to net cash flow from operating activities:
Cash flows from investing activities: Cash received for sale of land
$ 200,000
Cash paid for purchase of land
(150,000)

Cash paid to acquire treasury stock should be shown on the statement of cash flows under investing activities.

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(True/False)

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Question 2

Correct Answer:

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False

Dorman Company reported the following data: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

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Question 3

Correct Answer:

Verified

Cash flows from operating activities:
Net income $225,000
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation
25,000
Gain on disposal of equipment
20,500)Changes in current operating assets and liabilities:
Decrease in accounts receivable
14,000
Decrease in accounts payable
3,600)Net cash flow from operating activities $239,900

Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

(Multiple Choice)

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Question 4

For each of the following activities that may take place during the accounting period, indicate the effect a-g) on the statement of cash flows prepared using the indirect method. Choices may be selected as the answer for more than one question. -payment of dividends

(Multiple Choice)

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Question 5

Kennedy, Inc. reported the following data: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

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Question 6

Identify the section of the statement of cash flows a-d) where each of the following items would be reported. -Increase in accounts receivable

(Multiple Choice)

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Question 7

The statement of cash flows is not one of the basic financial statements.

(True/False)

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Question 8

Cash flows from investing activities, as part of the statement of cash flows, would include any receipts from the sale of land.

(True/False)

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Question 9

If 800 shares of $40 par common stock are sold for $43,000, the $43,000 would be reported in the cash flows from financing activities section of the statement of cash flows.

(True/False)

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Question 10

For each of the following activities that may take place during the accounting period, indicate the effect a-g) on the statement of cash flows prepared using the indirect method. Choices may be selected as the answer for more than one question. -purchase of equipment

(Multiple Choice)

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Question 11

Purchasing equipment by issuing a six-month note should be shown on the statement of cash flows under the investing activities section.

(True/False)

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Question 12

Free cash flow is cash flow from operations less cash used to purchase fixed assets to maintain productive capacity.

(True/False)

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Question 13

Free cash flow is

(Multiple Choice)

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Question 14

The main disadvantage of the direct method of reporting cash flows from operating activities is that the necessary data are often costly to accumulate.

(True/False)

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Question 15

If a business issued bonds payable in exchange for land, the transaction would be reported in a separate schedule on the statement of cash flows.

(True/False)

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Question 16

Identify which section the statement of cash flows using the indirect method) would present information regarding the following activities. Use O for operating, I for investing, or F for financing). a. Issued common stock b. Redeemed bonds c. Issued preferred stock d. Purchased patents e. Net income f. Paid cash dividends g. Purchased treasury stock h. Sold long-term investment i. Sold equipment j. Purchased buildings k. Issued bonds

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Question 17

A company had net income of $252,000. Depreciation expense is $26,000. During the year, accounts receivable and inventory increased by $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method?

(Multiple Choice)

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Question 18

If $475,000 of bonds payable are sold at 101, $475,000 would be reported in the cash flows from financing activities section of the statement of cash flows.

(True/False)

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Question 19

Which of the following would not be found in a schedule of noncash investing and financing activities, reported at the end of a statement of cash flows?

(Multiple Choice)

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Question 20

Showing 1 - 20 of 187

Exam 14: Statement of Cash Flows

Lamar Corporation purchased land for $150,000. Later in the year, the company sold land with a book value of $190,000 for $200,000. Show how the effects of these transactions are reported on the statement of cash flows using the indirect method.

Cash paid to acquire treasury stock should be shown on the statement of cash flows under investing activities.

Dorman Company reported the following data: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

For each of the following activities that may take place during the accounting period, indicate the effect a-g) on the statement of cash flows prepared using the indirect method. Choices may be selected as the answer for more than one question. -payment of dividends

Kennedy, Inc. reported the following data: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Identify the section of the statement of cash flows a-d) where each of the following items would be reported. -Increase in accounts receivable

The statement of cash flows is not one of the basic financial statements.

Cash flows from investing activities, as part of the statement of cash flows, would include any receipts from the sale of land.

If 800 shares of $40 par common stock are sold for $43,000, the $43,000 would be reported in the cash flows from financing activities section of the statement of cash flows.

For each of the following activities that may take place during the accounting period, indicate the effect a-g) on the statement of cash flows prepared using the indirect method. Choices may be selected as the answer for more than one question. -purchase of equipment

Purchasing equipment by issuing a six-month note should be shown on the statement of cash flows under the investing activities section.

Free cash flow is cash flow from operations less cash used to purchase fixed assets to maintain productive capacity.

Free cash flow is

The main disadvantage of the direct method of reporting cash flows from operating activities is that the necessary data are often costly to accumulate.

If a business issued bonds payable in exchange for land, the transaction would be reported in a separate schedule on the statement of cash flows.

If $475,000 of bonds payable are sold at 101, $475,000 would be reported in the cash flows from financing activities section of the statement of cash flows.

Which of the following would not be found in a schedule of noncash investing and financing activities, reported at the end of a statement of cash flows?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

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