Listed below are the reporting classifications for a statement of cash flows using the direct method for reporting operating cash flows. Indicate the reporting classification that would apply to each of the five transactions described below by placing the number of the reporting classification in the space provided by each transaction. \[\begin{array} { | l | l | l | } \hline \text { CLASSIFICATION } & \text { TRANSACTIONS } & \text { NUMIBER } \\ \hline \text { 1. Investing cash outflow } & \begin{array} { l } \text { Acquisition of equipment by issuing } \\ \text { ponds payable. } \end{array} & -\\ \hline \text { 2.Noncash financing and } & \text { Repayment of long-term debt by issuing } & \\ \text { investing activity } & \text { preferred stock. } & -\\ \hline \text { 3. Financing cash outflow } & \text { Interest received on trading securities. } & -\\ \hline \text { 4. Investing cash inflow } & \text { Cash sale of a patent at book value. } & -\\ \hline & \text { Loan of cash to a supplier in exchange } & \\ \text { 5. Operating cash inflow } & \text { for a six-month note receivable. } & -\\ \hline \end{array}\]

The answer of Listed below are the reporting classifications for...

Hogan Company had the following account balances for 2018: \[\begin{array} { l r r r } & \text { Dec. } 31 & \text { Jar. 1} \\ \text { Accounts receivable } & \$ 44,000 & \$ 35,000 \\ \text { Accounts payable } & 60,000 & 55,000 \\ \text { Prepaid insurarice } & 15,000 & 10,000 \end{array}\] Hogan reported net income of $300,000 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) $291,000. B) $290,000. C) $281,000. D) $301,000. A) $291,000. B) $290,000. C) $281,000. D) $301,000.

Exam 21: The Statement of Cash Flows Revisited

In its 2018 Annual Report to Shareholders, Kinney Inc. reported the following Consolidated Statement of Cash Flows: For the years ended December 31, -Assuming the decrease in accrued expenses during fiscal year 2018 included a $14,000 reduction due to interest on debt, compute the interest expense (net) for Kinney in that year.

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Question 41

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. -Investing cash inflow

(Multiple Choice)

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Question 42

When using the indirect method to determine cash flows from operating activities, an increase in prepaid expenses should be reported as:

(Multiple Choice)

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Question 43

In its 2018 Annual Report to Shareholders, Kinney Inc. reported the following Consolidated Statement of Cash Flows: For the years ended December 31, -Kinney reported cost of goods sold of $168,114,150 in its fiscal 2018 income statement. Compute Kinney's net inventory purchases during the year.

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Question 44

Lite Travel Company's accounting records include the following information: Payments to suppliers $~~~~~~~\$ 50,000$ Collections on accounts receivable $~79,000$ Cash sales $~~~~~~~~~ 44,000$ What is the amount of net cash provided by operating activities indicated by the amounts provided?

(Multiple Choice)

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Question 45

When preparing the statement of cash flows using the indirect method for determining net cash flows from operating activities, depreciation is added to net income because:

(Multiple Choice)

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Question 46

Proceeds from the sale of a plant site are:

(Multiple Choice)

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Question 47

Transactions that involve merely purchases or sales of cash equivalents generally are not reported on a statement of cash flows. Describe an exception to this generalization. What is the essential characteristic of the transaction that qualifies as an exception?

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Question 48

Listed below are the reporting classifications for a statement of cash flows using the direct method for reporting operating cash flows. Indicate the reporting classification that would apply to each of the five transactions described below by placing the number of the reporting classification in the space provided by each transaction. CLASSIFICATION TRANSACTIONS NUMIBER 1. Investing cash outflow Acquisition of equipment by issuing ponds payable. - 2.Noncash financing and Repayment of long-term debt by issuing investing activity preferred stock. - 3. Financing cash outflow Interest received on trading securities. - 4. Investing cash inflow Cash sale of a patent at book value. - Loan of cash to a supplier in exchange 5. Operating cash inflow for a six-month note receivable. -

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Question 49

Amounts held in cash equivalent investments must be reported separately from amounts held as cash in the statement of cash flows.

(True/False)

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Question 50

A purchase of equipment for cash is:

(Multiple Choice)

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Question 51

The statement of cash flows has been a required financial statement since 1988, but is the reporting of cash flows a relatively new concept? Explain.

(Essay)

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Question 52

Companies may report interest received and dividends received as investing activities using:

(Multiple Choice)

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Question 53

Hogan Company had the following account balances for 2018: Dec. 31 Jar. 1 Accounts receivable \ 44,000 \ 35,000 Accounts payable 60,000 55,000 Prepaid insurarice 15,000 10,000 Hogan reported net income of $300,000 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 54

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

(Essay)

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Question 55

Which of the following is not required by generally accepted accounting principles?

(Multiple Choice)

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Question 56

When reporting operating activities by the indirect method in a statement of cash flows:

(Multiple Choice)

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Question 57

The primary objective of the statement of cash flows is to provide information about a company's:

(Multiple Choice)

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Question 58

In preparation for developing its statement of cash flows for the year ended December 31, 2018, Millennium Solutions, Inc. collected the following information: Required: 1. Prepare the investing activities section of Millennium's statement of cash flows for 2018. 2. Prepare the financing activities section of Millennium's statement of cash flows for 2018.

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Question 59

During 2018, T Company engaged in the following activities: In T's statement of cash flows, what were net cash outflows from financing activities for 2018?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 192

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. -Investing cash inflow

When using the indirect method to determine cash flows from operating activities, an increase in prepaid expenses should be reported as:

In its 2018 Annual Report to Shareholders, Kinney Inc. reported the following Consolidated Statement of Cash Flows: For the years ended December 31, -Kinney reported cost of goods sold of $168,114,150 in its fiscal 2018 income statement. Compute Kinney's net inventory purchases during the year.

Lite Travel Company's accounting records include the following information: Payments to suppliers $~~~~~~~\$ 50,000$ Collections on accounts receivable $~79,000$ Cash sales $~~~~~~~~~ 44,000$ What is the amount of net cash provided by operating activities indicated by the amounts provided?

When preparing the statement of cash flows using the indirect method for determining net cash flows from operating activities, depreciation is added to net income because:

Proceeds from the sale of a plant site are:

Transactions that involve merely purchases or sales of cash equivalents generally are not reported on a statement of cash flows. Describe an exception to this generalization. What is the essential characteristic of the transaction that qualifies as an exception?

Amounts held in cash equivalent investments must be reported separately from amounts held as cash in the statement of cash flows.

A purchase of equipment for cash is:

The statement of cash flows has been a required financial statement since 1988, but is the reporting of cash flows a relatively new concept? Explain.

Companies may report interest received and dividends received as investing activities using:

Which of the following is not required by generally accepted accounting principles?

When reporting operating activities by the indirect method in a statement of cash flows:

The primary objective of the statement of cash flows is to provide information about a company's:

During 2018, T Company engaged in the following activities: In T's statement of cash flows, what were net cash outflows from financing activities for 2018?

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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