Exam 16: Statement of Cash Flows

Based on the following, what is free cash flow?​ Cash flows from operations include $2,000 for depreciation. Cash flows from investing include the purchase of a replacement asset for $100,000 and the sale of the one used in production, which is now obsolete, for $70,000. Cash flows from financing include $70,000 of borrowing.

Cash flow per share is

Sales reported on the income statement were $690,000. The accounts receivable balance declined $39,000 over the year. Determine the amount of cash received from customers.

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

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

Cash paid for preferred stock dividends should be shown on the statement of cash flows under

If land costing $145,000 was sold for $205,000, the $60,000 gain on the sale would be added to net income in the operating activities section of the statement of cash flows (prepared by the indirect method).

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

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.

Cash, as the term is used for the statement of cash flows, could indicate either cash or cash equivalents.

A building with a cost of $153,000 and accumulated depreciation of $42,000 was sold for an $11,000 gain. When using the indirect method, the cash generated from this investing activity is $121,000.

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

On the statement of cash flows, the Cash flows from financing activities section would include all of the following except

The net income reported on the income statement for the current year was $210,000. Depreciation recorded on equipment and a building amount to $62,500 for the year. Balances of the current assets and current liabilities accounts at the beginning and end of the year are as follows:​​ ​ (a)Prepare the Cash flows from operating activities section of the statement of cash flows, using the indirect method. (b)If the direct method had been used, would the net cash flow from operating activities have been the same? Explain.

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

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. -Sale of land

Free cash flow is

To arrive at cash flows from operations, it is necessary to convert the income statement from an accrual basis to the cash basis of accounting.

Land costing $71,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

Samuel Company's accumulated depreciation-equipment account increased by $6,000, while patents decreased by $2,200 between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a loss of $3,200 from the sale of investments. Assume no changes in noncash current assets and liabilities.​Samuel Company reported a net income of $92,000. Determine net cash flow from operating activities using the indirect method.