Exam 10: Statement of Cash Flows

At the beginning of 2010, Pablo owed $1,800 of taxes payable. Pablo's 2010 tax expense was $17,300 and the 2010 year-end balance in Income Taxes Payable was $300. How much did Pablo pay in income taxes during 2010?

Where is interest paid or received shown on a statement of cash flows under the following accounting systems?

In its first year of operations, Sweetness Co. reported net income of $158,000. Total sales (all on account) amounted to $575,000 and collections of receivables totaled $511,500. Sweetness recorded $17,000 of depreciation expense. Based on these facts alone, what is the net cash provided by operating activities?

Brandt Corporation's office supplies account balance at the end of 2009 and 2010 was $110,000 and $150,000, respectively. During 2010, Brandt's office supplies expense was $75,000. During 2010, how many dollars of office supplies did Brandt purchase?

The objective of the statement of cash flows is to account for the change in an organization's cash balance during a given accounting period.

For purposes of the statement of cash flows, cash refers to

Butler Corp.'s Retained Earnings balance at the end of 2009 and 2010 was $435,000 and $573,000, respectively. During 2010, Butler's net income was $295,000. Both cash and stock dividends were declared and settled during 2010. The total stock dividend was $28,000. During 2010, how much cash did Butler use for dividends?

During 2010, Bates Company earned net income of $275,000 which included depreciation expense of $34,000. The company had a loss on the sale of equipment of $2,000 and the following changes in account balances occurred: Based upon this information, what amount will be shown for net cash provided by operating activities for 2010?

Glover Corporation sold a building with a book value of $215,000 for $250,000. Information related to this sale should be classified on Glover's statement of cash flows as a

The collection of the principal amount of a note receivable is reported on the statement of cash flows as a(an)

During 2010, Maroon and Gold Corporation incurred the following events and transactions. March 15 Purchased an automobile for $15,000 with a 3-year, 5% note payable. The first payment is due March 15, 2011. May 7 Purchased a building for $500,000 cash. May 16 Declared a $10,000 cash dividend to all stockholders of record on June 30. August 1 Paid the dividend declared on May 16. August 15 Issued 100, $1,000 bonds at 101. September 3 Received $4,000 of interest revenue on a long-term investment. October 20 Sold a long-term investment originally costing $200,000 for $325,000 cash. November 5 Purchased $6,500 of treasury stock. December 1 Declared a $9,000 cash dividend to all stockholders of record on December 26. The dividend will be paid January 18. Required: Prepare the investing and financing sections of Maroon and Gold Corporation's statement of cash flows. If any of the above items are not included in the investing or financing sections of the statement of cash flows, discuss where they are included on the statement or why they are not included.

Payment of interest on a long-term loan payable is a financing activity.

Under U.S. GAAP, companies using the direct method of preparing a statement of cash flows must include a schedule reconciling net cash flow from operating activities with net income.

Dalton Corp.'s Accounts Payable balance at the end of 2009 and 2010 was $200,000 and $300,000, respectively. During 2010, Dalton bought $1,200,000 of inventory. How much cash did Dalton pay its vendors for inventory in 2010?

Net cash flow from operating activities is determined by eliminating

Under IFRS, companies using the direct method of preparing a statement of cash flows must include a schedule reconciling net cash flow from operating activities with net income.

Which of the following can be calculated for a given period as (net cash flow from operating activities minus preferred stock dividends) divided by the weighted average number of shares of common stock outstanding?

The operating cash flow ratio is calculated as

When preparing the operating activities section of a statement of cash flows using the indirect method, which of the following are added to and subtracted from net income?

Use the following information to answer questions : In 2010, Palacio Corporation sold an automobile for $5,000. The automobile had a book value of $7,500 at the time of the sale. -In its statement of cash flows prepared on the indirect method, Palacio should