Use the following calendar-year information to prepare David Company's statement of cash flows using the direct method: $\begin{array}{|l|r|} \hline \text { Cash paid to purchase machinery } & \$ 124,000 \\ \hline \text { Cash paid for merchandise inventory } & 220,000 \\ \hline \text { Cash paid for operating expenses } & 280,000 \\ \hline \text { Cash paid for interest } & 4,000 \\ \hline \text { Cash received for interest } & 10,000 \\ \hline \text { Cash proceeds from sale of land } & 100,000 \\ \hline \text { Cash balance at beginning of year } & 15,000 \\ \hline \text { Cash balance at end of year } & 77,000 \\ \hline \text { Cash borrowed on a short-term note } & 25,000 \\ \hline \text { Cash dividends paid } & 24,000 \\ \hline \text { Cash received from stock issuance } & 57,000 \\ \hline \text { Cash collections from customers } & 522,000\\ \hline \end{array}$

The answer of Use the following calendar-year information to prepare...

Use the following information to calculate cash paid for salaries: \[\begin{array} { | l | r | } \hline \text { Salaries expense } & \$ 79,000 \\ \hline \text { Salaries payable, January 1 } & 6,400 \\ \hline \text { Salaries payable, December } 31 & 3,320 \\ \hline \end{array}\]

A) $75,680 B) $82,080 C) $79,000 D) $85,400 E) $82,320 A) $75,680 B) $82,080 C) $79,000 D) $85,400 E) $82,320

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

Exam 12: Reporting and Analyzing Cash Flows

Probably the most important section of the statement of cash flows in analyzing the financial performance of a company's ongoing business is the ____________ section.

(Short Answer)

4.8/5

(32)

Question 121

A company reported operating cash flows in 2009 of $23,400 and $26,220 in 2010.The average total assets for the company in 2009 was $262,000 and $285,000 in 2010.Calculate the cash flow on total assets ratio for both years.Comment on the results.

(Essay)

4.9/5

(36)

Question 122

A company's inventory balance at 12/31/08 was $200,000 and was $188,000 at 12/31/09.Its accounts payable balance at 12/31/08 was $80,000 and was $84,000 at 12/31/09 and its cost of goods sold for 2009 was $720,000.The company's total amount of cash payments for merchandise in 2009 equals:

(Multiple Choice)

4.9/5

(39)

Question 123

The indirect method for the preparation of the operating activities section of the statement of cash flows:

(Multiple Choice)

4.8/5

(37)

Question 124

Non-cash financing activities are disclosed in a note in the financing section of the statement of cash flows.

(True/False)

4.8/5

(34)

Question 125

Use the following calendar-year information to prepare David Company's statement of cash flows using the direct method: Cash paid to purchase machinery \ 124,000 Cash paid for merchandise inventory 220,000 Cash paid for operating expenses 280,000 Cash paid for interest 4,000 Cash received for interest 10,000 Cash proceeds from sale of land 100,000 Cash balance at beginning of year 15,000 Cash balance at end of year 77,000 Cash borrowed on a short-term note 25,000 Cash dividends paid 24,000 Cash received from stock issuance 57,000 Cash collections from customers 522,000

(Essay)

4.7/5

(36)

Question 126

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

(True/False)

4.7/5

(28)

Question 127

The direct method of reporting operating cash flows:

(Multiple Choice)

4.8/5

(35)

Question 128

All cash transactions eventually affect noncash ___________ accounts.

(Short Answer)

4.8/5

(43)

Question 129

The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:

(Multiple Choice)

4.8/5

(32)

Question 130

The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period net income balance.

(True/False)

4.7/5

(36)

Question 131

The cash flow on total assets ratio is defined as average total assets divided by operating income.

(True/False)

4.7/5

(31)

Question 132

Internal users of the statement of cash flows often use cash flow information to plan day-to-day operating activities and make long-term financial decisions.

(True/False)

4.8/5

(41)

Question 133

Jacob Corporation's salaries expense was $18.0 million.What is the amount of cash that Jacob paid for salaries if the salaries payable account increased by $4.0 million?

(Short Answer)

4.8/5

(31)

Question 134

Use the following information to calculate cash paid for salaries: Salaries expense \ 79,000 Salaries payable, January 1 6,400 Salaries payable, December 31 3,320

(Multiple Choice)

4.8/5

(36)

Question 135

A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

(True/False)

4.8/5

(37)

Question 136

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)

4.8/5

(36)

Question 137

The following information is available for the Ehrens Corporation: Additional information: (1)There was no gain or loss on the sales of the long-term investments,nor on the bonds retired. (2)Old equipment with an original cost of $37,550 was sold for $2,100 cash. (3)New equipment was purchased for $67,550 cash. (4)Cash dividends of $33,600 were paid. (5)Additional shares of stock were issued for cash. Prepare a complete statement of cash flows for the 2010 calendar year using the indirect method.

(Essay)

4.8/5

(37)

Question 138

A company's cash flow on total assets ratio equals 16%.If average total assets equal $2,937,500 and total cash flows equal $600,000,what is the amount of cash flows from operations?

(Multiple Choice)

4.8/5

(41)

Question 139

For each of the following separate cases,use the information provided to calculate the missing cash inflow or cash outflow: (a) Accounts receivable balances: Beginning of year \ 60,000 End of year 57,000 Sales revenue (all on credit) 375,000 Cash received from customers \ (b) Accounts payable balances: Beginning of year \ 42,000 End of year 45,000 Merchandise inventory balances: Beginning of year 50,000 End of year 47,500 Cost of goods sold 250,000 Cash paid for merchandise inventory \ (c) Interest payable balances: Beginning of year \ 7,500 End of year 9,200 Interest expense 35,000 Cash paid for interest \

(Essay)

4.9/5

(36)

Question 140

Probably the most important section of the statement of cash flows in analyzing the financial performance of a company's ongoing business is the ____________ section.

A company reported operating cash flows in 2009 of $23,400 and $26,220 in 2010.The average total assets for the company in 2009 was $262,000 and $285,000 in 2010.Calculate the cash flow on total assets ratio for both years.Comment on the results.

A company's inventory balance at 12/31/08 was $200,000 and was $188,000 at 12/31/09.Its accounts payable balance at 12/31/08 was $80,000 and was $84,000 at 12/31/09 and its cost of goods sold for 2009 was $720,000.The company's total amount of cash payments for merchandise in 2009 equals:

The indirect method for the preparation of the operating activities section of the statement of cash flows:

Non-cash financing activities are disclosed in a note in the financing section of the statement of cash flows.

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

The direct method of reporting operating cash flows:

All cash transactions eventually affect noncash ___________ accounts.

The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:

The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period net income balance.

The cash flow on total assets ratio is defined as average total assets divided by operating income.

Internal users of the statement of cash flows often use cash flow information to plan day-to-day operating activities and make long-term financial decisions.

Jacob Corporation's salaries expense was $18.0 million.What is the amount of cash that Jacob paid for salaries if the salaries payable account increased by $4.0 million?

Use the following information to calculate cash paid for salaries: Salaries expense \ 79,000 Salaries payable, January 1 6,400 Salaries payable, December 31 3,320

A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

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

A company's cash flow on total assets ratio equals 16%.If average total assets equal $2,937,500 and total cash flows equal $600,000,what is the amount of cash flows from operations?

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Analyzing and Interpreting Financial Statements

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

Filters