Exam 16: Statement of Cash Flows

Use the information below for Washington Company to answer the following questions. ​ The following selected account balances appeared on the financial statements of Washington Company: ​ Washington Company uses the direct method to calculate net cash flow from operating activities. ​ -Cash payments for merchandise were

Identify the section of the statement of cash flows (a-d) where each of the following items would be reported. -Exchange of land for note payable

Sales reported on the income statement were $372,000. The accounts receivable balance declined $4,500 over the year. The amount of cash received from customers was $367,500.

If cash dividends of $135,000 were paid during the year and the company sold 1,000 shares of common stock at $30 per share, the statement of cash flows would report net cash flow from financing activities as $165,000.

If a gain of $11,000 is realized in selling (for cash) office equipment having a book value of $55,000, the total amount reported in the Cash flows from investing activities section of the statement of cash flows is

In determining the cash flows from operating activities for the statement of cash flows by the indirect method, the depreciation expense for the period is added to the net income for the period.

Identify the section of the statement of cash flows (a-d) where each of the following items would be reported. -Decrease in inventory

Identify the section of the statement of cash flows (a-d) where each of the following items would be reported. -Issuance of bond payable

Cash flows from investing activities, as part of the statement of cash flows, would include any payments for the purchase of treasury stock.

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?

Cash flows from investing activities, as part of the statement of cash flows, include payments for the acquisition of fixed assets.

If accounts payable have increased during a period,

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. -Decrease in accounts payable balance

Preferred stock issued in exchange for land would be reported on the statement of cash flows in

The declaration and issuance of a stock dividend would be reported on the statement of cash flows.

Cash flows from financing activities, as part of the statement of cash flows, would include any payments for dividends.

On the basis of the following data for Breach Co. for the current and preceding years ended December 31, prepare a statement of cash flows using the indirect method. Assume that equipment costing $25,000 was purchased for cash and no long-term assets were sold during the period.​Stock was issued for cash-3,200 shares at par.Net income for the current year was $76,000.Cash dividends declared and paid were $13,000.

A company had net income of $252,000. Depreciation expense was $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?

Net income was $51,000 for the year. The accumulated depreciation balance increased by $14,000 over the year. There were no sales of fixed assets or changes in noncash current assets or liabilities. Under the indirect method, the cash flow from operations is $37,000.

On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale of investments would be