Use the following information to calculate cash paid for wages and salaries: $\begin{array}{|l|r|} \hline \text { Salaries expense } & \$ 168,000 \\ \hline \text { Salaries payable, January } 1 & 6,400 \\ \hline \text { Salaries payable, December } 31 & 10,600 \\ \hline \end{array}$

A) $157,400 B) $163,800 C) $168,000 D) $172,200 E) $174,400 A) $157,400 B) $163,800 C) $168,000 D) $172,200 E) $174,400

Use the following information and the indirect method to calculate the net cash provided or used by operating activities: $\begin{array}{|l|r|} \hline \text { Net income } & \$ 12,300 \\ \hline \text { Depreciation expense } & 12,000 \\ \hline \text { Payment on mortgage payable } & 15,000 \\ \hline \text { Gain on sale of land } & 7,500 \\ \hline \text { Increase in merchandise inventory } & 2,050 \\ \hline \text { Increase in accounts payable } & 6,150 \\ \hline \text { Proceeds from sale of land } & 8,000 \\ \hline \end{array}$

A) $12,700 B) $13,900 C) $20,900 D) $28,400 E) $35,900 A) $12,700 B) $13,900 C) $20,900 D) $28,400 E) $35,900

Given the following information, determine the amount of cash flows from investing and financing activities. $\begin{array}{|l|r|} \hline \text { Net income } & \$ 50,000 \\ \hline \text { Loss on sale of plant assets } & 15,000 \\ \hline \text { Cash received from sale of plant assets } & 26,000 \\ \hline \text { Cash received from issuing stock } & 70,000 \\ \hline \text { Increase in income taxes payable } & 120,000\\ \hline \end{array}$

A) $\begin{array}{|l|} \hline \text {Cash provided by irvesting activities, \$ 11,000 } \\ \hline \text {Cash provided by finaricing activities, \$ 70,000} \\ \hline \end{array}$ B) $\begin{array}{|l|} \hline \text {Cash used by irvesting activities, \$ 11,000 } \\ \hline \text {Cash used by finaricing activities, \$ 70,000} \\ \hline \end{array}$ C) Cash provided by irvestirg activities, $\$ 26,000$ Cash provided by firancing activities, $\$ 55,000$ D) $\begin{array}{|l|} \hline \text {Cash used by irvesting activities, \$ 26,000} \\ \hline \text {Cash used by Finarucing activities, \$ 55,000} \\ \hline \end{array}$ E) $\begin{array}{|l|} \hline \text {Cash provided by irvesting activities, \$ 26,000} \\ \hline \text {Cash provided by finaricing activities, \$ 70,000} \\ \hline \end{array}$ A) $\begin{array}{|l|} \hline \text {Cash provided by irvesting activities, \$ 11,000 } \\ \hline \text {Cash provided by finaricing activities, \$ 70,000} \\ \hline \end{array}$ B) $\begin{array}{|l|} \hline \text {Cash used by irvesting activities, \$ 11,000 } \\ \hline \text {Cash used by finaricing activities, \$ 70,000} \\ \hline \end{array}$ C) Cash provided by irvestirg activities, $\$ 26,000$ Cash provided by firancing activities, $\$ 55,000$ D) $\begin{array}{|l|} \hline \text {Cash used by irvesting activities, \$ 26,000} \\ \hline \text {Cash used by Finarucing activities, \$ 55,000} \\ \hline \end{array}$ E) $\begin{array}{|l|} \hline \text {Cash provided by irvesting activities, \$ 26,000} \\ \hline \text {Cash provided by finaricing activities, \$ 70,000} \\ \hline \end{array}$

Use the following information and the indirect method to calculate the net cash provided or used by operating activities: $\begin{array}{|l|r|} \hline \text { Cash paid for purchase of plant assets } & \$ 15,000 \\ \hline \text { Decrease in interest payable } & 2,000 \\ \hline \text { Depreciation expense } & 30,000 \\ \hline \text { Gain on retirement of bonds } & 32,000 \\ \hline \text { Increase in accountsreceivable } & 40,000 \\ \hline \text { Loss on sale of plant assets } & 5,000 \\ \hline \text { Net Income } & 76,000\\ \hline \end{array}$

A) $22,000 B) $117,000 C) $69,000 D) $37,000 E) $91,000 A) $22,000 B) $117,000 C) $69,000 D) $37,000 E) $91,000

Exam 12: Reporting and Analyzing Cash Flows

A corporation reported average total assets of $397,350 in 2012 and $440,800 in 2013.Its net operating cash flow was $35,667 for 2012 and $35,790 for 2013.Calculate the cash flow on total assets ratio for both years.Comment on the results.

(Essay)

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Question 121

A corporation prepares its statement of cash flows using the indirect method to report operating activities.Net income for the 2014 fiscal year was $634,000.Depreciation and amortization expense of $60,000 and $30,000 respectively were included with operating expenses in the income statement.The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable \ 22,000 Increase in inventories 9,400 Increase prepaid expenses 8,900 Increase in salaries payable 10,400 Decrease in income taxes payable 14,400 Determine the net cash flow provided (used)by operating activities.

(Multiple Choice)

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Question 122

A company reported operating cash flows of $57,000 and average total assets of $962,000.Calculate the company's cash flow on total assets ratio.

(Short Answer)

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Question 123

___________________ activities include those transactions that affect long-term liabilities and equity.

(Short Answer)

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Question 124

___________________ activities generally include those transactions and events that affect long-term assets.

(Short Answer)

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Question 125

When using the indirect method to calculate and report net cash provided or used by operating activities, which of the following is subtracted from net income?

(Multiple Choice)

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Question 126

Describe the format of the statement of cash flows, including the reporting of significant noncash investing and financing activities.

(Essay)

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Question 127

Explain how the cash flows from operating activities section of the statement of cash flows is prepared when using the direct method.

(Essay)

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Question 128

Use the following information to calculate cash paid for wages and salaries: Salaries expense \ 168,000 Salaries payable, January 1 6,400 Salaries payable, December 31 10,600

(Multiple Choice)

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Question 129

Use the following information about the calendar-year cash flows of MacArthur Company to prepare a statement of cash flows (direct method)and a schedule of noncash investing and financing activities. Cash and cash equivalents, beginning-year balance \ 18,000 Cash and cash equivalents, year-end balance 78,750 Cash payments for merchandise inventory 75,750 Cash paid for store equipment 15,750 Cash borrowed on three-month note payable 22,500 Cash dividends paid 12,000 Cash paid for salaries 39,000 Cash payments for other operating expenses 48,000 Building purchased and financed by long-term note payable 78,000 Cash received from customers 220,500 Cash interest received 8,250

(Essay)

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Question 130

Managers only use the cash flow statement to evaluate the overall net cash increase or decrease and do not pay much attention to the details of cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

(True/False)

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Question 131

Financing activities include receiving cash dividends from investments in other companies' stocks.

(True/False)

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Question 132

Investments that are readily convertible to a known amount of cash and are sufficiently close to their maturity so that the market value is unaffected by interest rate changes are ______________________________.

(Short Answer)

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Question 133

Under IFRS, interest revenue may be classified as an operating or investing activity, assuming that this classification is applied consistently across all periods.

(True/False)

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Question 134

The direct method of reporting operating cash flows:

(Multiple Choice)

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Question 135

Use the following company information to prepare a schedule of significant noncash investing and financing activities: (a)Sold a building with a book value of $125,000 for $195,000 cash and land with a book value of $32,000 for $65,000 cash. (b)Issued 10,000 shares of $10 par value common stock in exchange for equipment with a market value of $135,000. (c)Retired a $100,000, 10% bond by issuing another $100,000, 12% bond issue. (d)Acquired land by issuing a 10-year, 9%, $44,000 note payable.

(Essay)

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Question 136

Selected information from Jet Company's 2013 financial statements is shown below (in millions): Inventory decreased $\$ 6.0 \quad$ Accounts payable increased by $\$ 7.0$ Cost of goods sold $\$ 36.50 \quad$ Salaries expense $\$ 24.0$ Salaries payable decreased $\$ 6.0 \quad$ Accounts receivable increased by $\$ 10.0$ Sales $\$ 56.4$ -What is the amount of cash received from Jet's customers during 2013?

(Multiple Choice)

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Question 137

Use the following information and the indirect method to calculate the net cash provided or used by operating activities: Net income \ 12,300 Depreciation expense 12,000 Payment on mortgage payable 15,000 Gain on sale of land 7,500 Increase in merchandise inventory 2,050 Increase in accounts payable 6,150 Proceeds from sale of land 8,000

(Multiple Choice)

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Question 138

Given the following information, determine the amount of cash flows from investing and financing activities. Net income \ 50,000 Loss on sale of plant assets 15,000 Cash received from sale of plant assets 26,000 Cash received from issuing stock 70,000 Increase in income taxes payable 120,000

(Multiple Choice)

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Question 139

Use the following information and the indirect method to calculate the net cash provided or used by operating activities: Cash paid for purchase of plant assets \ 15,000 Decrease in interest payable 2,000 Depreciation expense 30,000 Gain on retirement of bonds 32,000 Increase in accountsreceivable 40,000 Loss on sale of plant assets 5,000 Net Income 76,000

(Multiple Choice)

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Question 140

A corporation reported average total assets of $397,350 in 2012 and $440,800 in 2013.Its net operating cash flow was $35,667 for 2012 and $35,790 for 2013.Calculate the cash flow on total assets ratio for both years.Comment on the results.

A company reported operating cash flows of $57,000 and average total assets of $962,000.Calculate the company's cash flow on total assets ratio.

___________________ activities include those transactions that affect long-term liabilities and equity.

___________________ activities generally include those transactions and events that affect long-term assets.

When using the indirect method to calculate and report net cash provided or used by operating activities, which of the following is subtracted from net income?

Describe the format of the statement of cash flows, including the reporting of significant noncash investing and financing activities.

Explain how the cash flows from operating activities section of the statement of cash flows is prepared when using the direct method.

Use the following information to calculate cash paid for wages and salaries: Salaries expense \ 168,000 Salaries payable, January 1 6,400 Salaries payable, December 31 10,600

Managers only use the cash flow statement to evaluate the overall net cash increase or decrease and do not pay much attention to the details of cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

Financing activities include receiving cash dividends from investments in other companies' stocks.

Investments that are readily convertible to a known amount of cash and are sufficiently close to their maturity so that the market value is unaffected by interest rate changes are ______________________________.

Under IFRS, interest revenue may be classified as an operating or investing activity, assuming that this classification is applied consistently across all periods.

The direct method of reporting operating cash flows:

Given the following information, determine the amount of cash flows from investing and financing activities. Net income \ 50,000 Loss on sale of plant assets 15,000 Cash received from sale of plant assets 26,000 Cash received from issuing stock 70,000 Increase in income taxes payable 120,000

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

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