Exam 16: Understanding Corporate Annual Reports: Basic Financial Statements

Sprock Company has the following balances at December 31,2015: Required: Prepare a multiple-step income statement for the year ended December 31,2015.

Which of the following events do NOT affect cash flows from operating activities?

The ending retained earnings balance of Baha Company is $800,000.During the current year,net income is $370,000 and dividends declared are $150,000.What is the beginning balance in retained earnings?

The direct method of preparing the operating activities section of the statement of cash flows begins with net income.

A company acquired 100 units of inventory on January 1,2010 and 100 units on December 1,2010.The company sold 100 units on December 31,2010,which was the company's only sale.Under LIFO,the cost of goods sold would come from ________.

Goodwill is amortized for financial statement purposes.

Colorado Company reported cost of goods sold of $650,000.Beginning inventory was $150,000 and ending inventory was $140,000.How much inventory did the company purchase?

The wages expense of Ben Corporation was $45,000.Beginning wages payable was $6,000.Ending wages payable was $3,000.The cash paid to employees was ________.

The cash received from the sale of land is included in the ________ section of the statement of cash flows.

The statement of cash flows classifies changes in cash as operating,investing and financing activities.

Gross profit equals sales minus cost of goods sold.

On a classified balance sheet,the Equipment account is reduced by ________.

Old equipment having a book value of $12,000 was sold for $10,000 cash.New equipment was purchased for $25,000 cash.Additional equipment was acquired in exchange for a $17,000 long-term note payable.The net cash flow from investing activities was ________.

Yesterday Company reports the following information: Depreciation expense for the year ending December 31,2012 is $17.No fixed assets were sold during 2012.What is the net cash flow from investing activities for the year ending December 31,2012?

Selected items from the financial statements for Key Company are listed below: Key Company has 5,000 common shares outstanding during the year.What are the earnings per share for the year ended December 31,2010?

On a classified balance sheet,Accounts Receivable are reduced by ________.

Preferred stock has priority over common stock in ________.

Amber Company had the following data: What is the balance in Retained Earnings on December 31,2015?

Under the direct method of preparing the statement of cash flows,the cash collected from customers is determined for the operating activities section.

Cash as listed on the balance sheet includes ________.