Hanson Company had the following account balances for 2018: $\begin{array}{lrcc} & \text { Dec. 31 } & \text { Jan. 1 } \\ \text { Inventory } & \$ 40,000 & \$ 35,000 \\ \text { Accounts payable } & 40,000 & 55,000 \end{array}$ Hanson reported net income of $90,000 for 2018. Assuming no other changes in current account balances, what is the amount of net cash provided by operating activities for 2018 reported in the statement of cash flows?

A) $70,000. B) $80,000. C) $100,000. D) $110,000. A) $70,000. B) $80,000. C) $100,000. D) $110,000.

The accounting records of Unlucky Company provided the data below. \[\begin{array} { | l | l |} \hline \text { Net loss } & \$ 40,000 \\ \hline \text { Depreciation expense } & 12,000 \\ \hline \text { Increase in salaries payable } & 11,000 \\ \hline \text { Increase in accounts receivable } & 4,000 \\ \hline \text { Decrease in inventory } & 4,800 \\ \hline \text { Amortization of patent } & 700 \\ \hline \text { Decrease in premium on bonds } & 500 \\ \hline \end{array}\] Required: Prepare a reconciliation of net income to net cash flows from operating activities.

The answer of The accounting records of Unlucky Company provided...

In preparing its cash flow statement for the year ended December 31, 2018, Green Co. gathered the following data: $\begin{array}{lll} \text {Gain on sale of land }&\$12,000\\ \text {Proceeds from sale of land }&20,000\\ \text {Purchase of Blue, Inc., bonds (facevalue \( \$ 200,000 $ ) }&360,000\\ \text { Amortization of bond discount}&4,000\\ \text {Cash dividends declared }&90,000\\ \text { Cash dividends paid}&76,000\\ \text { Proceeds from sales of Red Co. common stock}&150,000\\ \end{array}\) In its December 31, 2018, statement of cash flows, what amount should Green report as net cash from financing activities?

A) $40,000. B) $54,000. C) $60,000. D) $74,000. A) $40,000. B) $54,000. C) $60,000. D) $74,000.

Exam 21: The Statement of Cash Flows Revisited

Melanie Corporation declared cash dividends of $13,500 during the current year. The beginning and ending balances in dividends payable were $450 and $750, respectively. What was the amount of cash paid for dividends?

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Question 1

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In its 2018 Annual Report to Shareholders, Henchman & Co. provided the following Statement of Cash Flows: $In its 2018 Annual Report to Shareholders, Henchman & Co. provided the following Statement of Cash Flows: \begin{array} { | l | r | r | } \hline \text { Years ended December 31 (\$ in millions) } & 2018 & 2017 \\ \hline \text { Financing Activities } & & \\ \hline \text { Proceeds from issuance of long-term debt } & 1,491 & \\ \hline \text { Proceeds from equity security units } & 690 & \\ \hline \text { Borrowings under lines of credit } & 1,173 & \\ \hline \text { Repayment of borrowings under lines of Credit } & ( 1,306 ) & ( 175 ) \\ \hline \text { Principal payments of long-term debt/lease } & & \\ \text { agreements } & ( 119 ) & ( 485 ) \\ \hline \text { Proceeds from issuance of stock } & { 8 2 5 } & 19 \\ \hline \text { Dividends paid } & ( 158 ) & ( 114 ) \\ \hline \text { Other financing activities } & \underline{( 64 )} & -\\ \hline \text { Net cash provided by (used in) financing } & & \\ \text { activities } & { 2 , 5 3 2 } & ( 755 ) \\ \hline \text { Increase in cash and cash equivalents } & 145 & 177 \\ \hline \text { Cash and cash equivalents at beginning of year } & \underline{319} & \underline{142} \\ \hline \text { Cash and cash equivalents at end of year } & \underline{\$ 464} & \$ \underline{319} \\ \hline \end{array} -(a.) What is the most significant change in operating cash outflow activity in 2018 relative to 2017? (b.) What balance sheet accounts would likely have changed during 2018 in relation to the cash flow change that you identify in (a)?$ Years ended December 31 (\ in millions) 2018 2017 Financing Activities Proceeds from issuance of long-term debt 1,491 Proceeds from equity security units 690 Borrowings under lines of credit 1,173 Repayment of borrowings under lines of Credit (1,306) (175) Principal payments of long-term debt/lease agreements (119) (485) Proceeds from issuance of stock 825 19 Dividends paid (158) (114) Other financing activities - Net cash provided by (used in) financing activities 2,532 (755) Increase in cash and cash equivalents 145 177 Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year \ -(a.) What is the most significant change in operating cash outflow activity in 2018 relative to 2017? (b.) What balance sheet accounts would likely have changed during 2018 in relation to the cash flow change that you identify in (a)?

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Question 2

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(a.) Cash payments to suppliers and employees increased from $7,250 million to $13,251 million.
(b.) Accounts Payable and Wages/Salaries Payable probably are the accounts that would have changed.

Jim Sox Company owns debt securities classified as available for sale which were acquired in 2016 at face value of $17 million. During 2018, the fair value of those securities increased by $220,000. What effect did this increase have on Sox's 2018 statement of cash flows?

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Question 3

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Which of the following would not be a component of cash flows from investing activities?

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Question 4

S Company reported net income for 2018 in the amount of $400,000. The company's financial statements also included the following: Increase in accounts receivable $~~~~~\$ 80,000$ Decrease in irventory $~60,000$ Increase in accourts payable $~200,000$ Depreciation expense $104,000$ Gair on sale of lard $~~~~~~~148,000$ What is net cash provided by operating activities under the indirect method?

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Question 5

If bond interest expense is $300,000, bond interest payable decreased by $4,000 and bond premium decreased by $1,000, cash paid for bond interest is:

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Question 6

Which of the following is not reported as an adjustment to net income when using the indirect method of computing net cash flows from operating activities?

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Question 7

Indicate the reporting classification that would apply to each of the following transactions

Acquisition of equipment by issuing bonds payable.

Investing cash outflow

Repayment of long-term debt by issuing preferred stock.

Noncash financing and investing activity

Interest received on trading securities.

Financing cash outflow

Correct Answer:

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Acquisition of equipment by issuing bonds payable.

Repayment of long-term debt by issuing preferred stock.

Interest received on trading securities.

Cash sale of a patent at book value.

Loan of cash to a supplier in exchange for a six-month note receivable.

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Question 8

The amortization of bond discount is included in the statement of cash flows (indirect method) as:

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Question 9

Listed below are the reporting classifications for a statement of cash flows using the direct method for reporting operating cash flows. Match the reporting classifications with the transactions described below. -Noncash financing and investing activity

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Question 10

Under U.S. GAAP, cash flows from investing activities do not include:

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Question 11

Listed below are reporting classifications for a statement of cash flows using the indirect method for reporting operating cash flows. Match the reporting classifications with the transactions described below. -Operating activity, no adjustment to net income

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Question 12

On December 31, 2018, Tiras Company reported net income of $50,000 and sales of $200,000. The company also reported beginning and ending accounts receivable at $20,000 and $25,000, respectively. Tiras will report cash collected from customers in its 2018 statement of cash flows (indirect method) in the amount of:

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Question 13

Hanson Company had the following account balances for 2018: Dec. 31 Jan. 1 Inventory \ 40,000 \ 35,000 Accounts payable 40,000 55,000 Hanson reported net income of $90,000 for 2018. Assuming no other changes in current account balances, what is the amount of net cash provided by operating activities for 2018 reported in the statement of cash flows?

(Multiple Choice)

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Question 14

Partial balance sheets for ABC Company and additional information are provided below. Required: Prepare the financing activities section of the statement of cash flows for 2018.

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Question 15

Determine the amount of cash received from customers for each of the two independent situations below. Situation Sales Situation Accounts receivable revenue Cash received from customers 1 \ 300,000 \ 10,000 ? 2 300,000 (10,000) ?

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Question 16

A decrease in cash dividends payable means that dividends declared were less than dividends paid.

(True/False)

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Question 17

The accounting records of Unlucky Company provided the data below. Net loss \ 40,000 Depreciation expense 12,000 Increase in salaries payable 11,000 Increase in accounts receivable 4,000 Decrease in inventory 4,800 Amortization of patent 700 Decrease in premium on bonds 500 Required: Prepare a reconciliation of net income to net cash flows from operating activities.

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Question 18

In preparing its cash flow statement for the year ended December 31, 2018, Green Co. gathered the following data: Gain on sale of land \1 2,000 Proceeds from sale of land 20,000 Purchase of Blue, Inc., bonds (facevalue \ 200,000 ) 360,000 Amortization of bond discount 4,000 Cash dividends declared 90,000 Cash dividends paid 76,000 Proceeds from sales of Red Co. common stock 150,000 In its December 31, 2018, statement of cash flows, what amount should Green report as net cash from financing activities?

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Question 19

A statement of cash flows and its related disclosure note typically do not report:

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Question 20

Showing 1 - 20 of 192

Melanie Corporation declared cash dividends of $13,500 during the current year. The beginning and ending balances in dividends payable were $450 and $750, respectively. What was the amount of cash paid for dividends?

Jim Sox Company owns debt securities classified as available for sale which were acquired in 2016 at face value of $17 million. During 2018, the fair value of those securities increased by $220,000. What effect did this increase have on Sox's 2018 statement of cash flows?

Which of the following would not be a component of cash flows from investing activities?

If bond interest expense is $300,000, bond interest payable decreased by $4,000 and bond premium decreased by $1,000, cash paid for bond interest is:

Which of the following is not reported as an adjustment to net income when using the indirect method of computing net cash flows from operating activities?

The amortization of bond discount is included in the statement of cash flows (indirect method) as:

Listed below are the reporting classifications for a statement of cash flows using the direct method for reporting operating cash flows. Match the reporting classifications with the transactions described below. -Noncash financing and investing activity

Under U.S. GAAP, cash flows from investing activities do not include:

Listed below are reporting classifications for a statement of cash flows using the indirect method for reporting operating cash flows. Match the reporting classifications with the transactions described below. -Operating activity, no adjustment to net income

Partial balance sheets for ABC Company and additional information are provided below. Required: Prepare the financing activities section of the statement of cash flows for 2018.

Determine the amount of cash received from customers for each of the two independent situations below. Situation Sales Situation Accounts receivable revenue Cash received from customers 1 \ 300,000 \ 10,000 ? 2 300,000 (10,000) ?

A decrease in cash dividends payable means that dividends declared were less than dividends paid.

A statement of cash flows and its related disclosure note typically do not report:

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, Comprehensive Income, and the Statement of Cash Flows

Revenue Recognition

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Inventories: Additional Issues

Property, Plant, and Equipment and Intangible Assets: Acquisition

Property, Plant, and Equipment and Intangible Assets: Utilization and Disposition

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes and Error Corrections

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