Exam 12: Reporting and Interpreting the Statement of Cash Flows

The accounting records for the Helen Co.show that its cost of goods sold for the year was $600,000.In addition,it had an increase in inventory of $10,000 and a decrease in accounts payable of $12,000.As a result under the direct method,the amount of cash paid to suppliers for the year was:

Which of the following statements about the calculation of cash flows from operating activities under the direct method is correct?

Which of the following statements about financing activities is not correct?

Which phrase below best describes the direct method for reporting operating cash flows?

Assume a company uses the indirect method to prepare its statement of cash flows.If the Supplies account increases and Salaries and Wages Payable decreases during an accounting period,what does the company do with the changes in these accounts to calculate cash flows from operating activities?

Flynn Corporation had the following cash flows for the current year.The company uses the direct method in preparing the statement of cash flows. -Use the information above to answer the following question.What is the net cash provided by (used in)investing activities?

Which of the following would be included in cash flows from financing activities?

The difference between net income and cash flow may be due to all of the following except:

The direct exchange of debt for equipment would be shown:

Cash flows from investing activities include all of the following except a(n):

Consider the following information: Required: Use the direct method to compute the amount of net cash flows provided by (used in)operating activities.

When the indirect method is used,details from which of the following balance sheet accounts are used in calculating both operating and financing cash flows?

Assume that the direct method is used to prepare the operating activities section of the statement of cash flows.Which of the following statements is correct concerning a decrease in Accounts Payable?

Consider the following information: What is the net cash provided by operating activities?

Darnell,Inc.'s balance sheet indicated that the cash account increased by $5,400 during the past year.Net cash provided by operating activities was $14,000 and net cash used in investing activities was $6,100.What was the net cash flow effect of the company's financing activities?

Which of the following equations is correct?

Cash flows from investing activities include:

The starting point for preparing the operating activities section using the indirect method is:

Material noncash investing and financing transactions are:

Using the T-account approach to preparing the statement of cash flows,an increase in Accounts Payable would appear on the debit side of the Cash account.