Exam 5: Statement of Cash Flows and Articulation

In its accrual basis income statement for the year ended December 31,2014,Braxton Company reported revenue of $3,500,000.Additional information is as follows: Nelson should report cash collected from customers in its 2014 statement of cash flows (direct method)in the amount of

Which of the following is not classified as a cash outflow from operating activities?

Patterson,Inc.,has the following comparative balance sheets and income statement available for your examination: Additional information: 1.Fully depreciated equipment costing $6,000 was abandoned on the first day of business of 2014. 2.A building to store materials was acquired for $26,000. 3.A stock dividend of $20,000 was declared and distributed,as was a cash dividend of $8,000. 4.Additional stock was sold during 2014 for cash. Prepare a statement of cash flows for Patterson,Inc.,for 2014 employing the indirect method of identifying cash flows from operating activities.

The following is a comparative balance sheet for Cool Covers Clothiers Inc.for the years 2014 and 2013: The income statement for the year ended December 31,2014,follows: After paying cash dividends,the decrease in retained earnings totaled $95,000.Management is alarmed by the shrinkage in the company's cash position during 2014.Prepare a statement of cash flows for 2014 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 Ding Boot Company above.The net cash provided by (used in)investing activities is

In a statement of cash flows (indirect method),an increase in inventories should be presented as

Robinson Company reported a net loss of $23,000 during the year.Comparing beginning and ending balances,you determine the following: (1)accounts receivable increased by $8,000; and (2)accrued expenses payable increased by $5,000.What was the amount of cash used in operating activities during the year?

Daisy Corporation reported net income of $420,000 for 2014.Changes occurred in several balance sheet accounts as follows: Additional information: ·During 2014,Daisy sold equipment costing $35,000,with accumulated depreciation of $16,800,for a gain of $7,000. ·In December 2014,Daisy purchased equipment costing $70,000 with $28,000 cash and a 12% note payable of $42,000. ·Depreciation expense for the year was $72,800. In Daisy's 2014 statement of cash flows,net cash provided by operating activities should be

Sapphire Company reported the following information for the year 2014: Sales revenue of $280,000; cost of goods sold of $100,000; selling expenses of $40,000; administrative expenses of $35,000; depreciation of $25,000; interest expense of $8,000; and income tax expense of $28,000.All sales were made for cash and all expenses (other than depreciation and bond premium amortization of $2,000)were paid in cash.All current assets and current liabilities remained unchanged.How much cash was provided by operations for Sapphire Company during 2014?

In a statement of cash flows (indirect method),depreciation is treated as an adjustment to reported net income because depreciation

The following is a partial balance sheet and additional information for the Lakehurst Company: Additional information: (a)Net income for 2014 was $30,000 (b)Depreciation Expense for 2014 was $60,000 (c)Sales for 2014 totaled $980,000 (d)Cost of Goods Sold for 2014 was $700,000 Required: Compute the total Cash paid in 2014 for Inventory purchases.

Noncash investing and financing activities,if material,are

A comparative balance sheet for Meyerson Industries is given below: Additional data from the company's records were: (a)On July 1,2014,exchanged 3,000 shares of common stock for equipment. (b)On December 31,2014,paid cash dividends of $40,000 and income taxes of $10,000. Prepare a cash flow statement for Meyerson Industries for the year ended December 31,2014,using the indirect method.Include any necessary supplemental disclosures.

Almondine Company sold a computer for $50,000.The computer's original cost was $250,000,and the accumulated depreciation at the date of sale was $180,000.The sale of the computer should appear on Almondine's annual statement of cash flows (indirect method)as

Partial balance sheet data and additional information for Earth Moving Industries are given below: Additional information: (a)June 15,2014--issued 4,000 shares of common stock for cash. (b)July 1,2014--purchased new equipment for cash. (c)December 31,2014--paid cash dividends of $40,000. Prepare the investing and financing activities sections of the statement of cash flows for the year ending December 31,2014.

Silken Corp.reported net income of $420,000 for 2014.Changes occurred in several balance sheet accounts as follows: Additional information: ·During 2014,Silken sold equipment costing $35,000,with accumulated depreciation of $16,800,for a gain of $7,000. ·In December 2014,Silken purchased equipment costing $70,000 with $28,000 cash and a 12% note payable of $42,000. ·Depreciation expense for the year was $72,800. In Silken's 2014 statement of cash flows,net cash used in investing activities should be

Cash inflows from investing result from

Which of the following is classified as a cash inflow from financing activities?

Kirkland Company's prepaid rent was $40,000 at December 31,2014,and $15,000 at December 31,2013.Kirkland's income statement for 2014 reported rent expense as $10,000.What amount of cash disbursements for rent would be reported in Kirkland's net cash flows from operating activities for 2014 presented on a direct basis?

The following information is available from Dodger Corporation's accounting records for the year ended December 31,2014: Net cash flow provided by operating activities for 2014 was