Exam 5: Statement of Cash Flows and Articulation

Delilah, Inc., presents the following comparative balance sheets and income statement (all amounts in thousands of dollars): ¹Includes interest paid in cash of $23. -See information regarding Delilah,Inc.above.The following additional information is available: 1.Fully depreciated equipment costing $6,000 was abandoned on the first business day of 2014. 2.A building to store materials was acquired for $26,000. 3.A stock dividend of $20,000 was declared and distributed. 4.A cash dividend of $8,000 was declared and distributed. 5.Additional stock was sold during 2014 for cash. Required: 1.Compute the following ratios: a.Cash Flow-to-Net Income b.Cash Flow Adequacy c.Cash Times Interest Earned 2.What cash flow statement pattern does Delilah,Inc.,exhibit?

Which of the following would be an addition to net income when using the indirect method to derive net cash flows from operating activities?

When preparing a statement of cash flows using the direct method,amortization of a patent is

In a statement of cash flows,which of the following would increase reported cash flows from operating activities using the direct method?

Dingo Boot Company uses the direct method to prepare its statement of cash flows. The company had the following cash flows during 2014: -See information regarding Dingo Boot Company above.The net cash provided by (used in)all activities is

Citrus Inc.declared and paid cash dividends of $100,000 on common stock and $75,000 on preferred stock.How would these dividends be presented in Citrus' statement of cash flows?

The following information is provided by Horizons Company: Horizons Company Balance Sheet December 31,2014 and 2013 Horizons Company Income Statement For the Years Ended December 31,2014 and 2013 Additional information pertinent to this company is as follows: 1.Cash received from issuing the note was subsequently used to purchase a new building.Common stock sold in 2014 provided additional working capital. 2.All accounts payable and accounts receivable relate to trade merchandise.No provision was made for uncollectible accounts in 2014 and no receivables were charged against the allowance in 2014. 3.Accounts payable are recorded net and paid within the discount period. Required: Determine the following amounts: 1.Cash collected from accounts receivable during 2014. 2.Cash payments for noncurrent assets purchased during 2014. 3.Cash receipts during 2011 that were not provided by operations. 4.Cash payments during 2011 on accounts payable to suppliers.

Which of the following is a noncash transaction that should be disclosed in a schedule accompanying the statement of cash flows?

A gain on the sale of a plant asset in the ordinary course of business should be presented in a statement of cash flows prepared using the indirect method as

Dingo Boot Company uses the direct method to prepare its statement of cash flows. The company had the following cash flows during 2014: -See information regarding Dingo Boot Company above.The net cash provided by (used in)operating activities is

Which of the following would not be classified as an operating activity?

Cash flows from financing activities would be reduced by which of the following?

In a statement of cash flows,payments to acquire debt instruments of other entities would typically be classified as cash outflows for

Cash equivalents would not include short-term investments in

In a statement of cash flows,receipts from sales of property,plant,and equipment would be classified as cash inflows from

The amortization of a bond premium can correctly be presented in the statement of cash flows in which of the following ways?

In a statement of cash flows,payments to acquire bonds or mortgages of other entities should be classified as cash outflows for

The following pertains to the Excelsior Corp.for the year ended December 31,2014. Prepare a statement of cash flows in good form using the indirect method.Calculate the cash flow to net income and cash flow adequacy ratios for the company.

A cash dividend that is declared during an accounting period,to be paid in the next accounting period,may be presented in the statement of cash flows in which of the following ways?

Which of the following is true?