Sneed Corporation reported balances in the following accounts for the current year: $\begin{array}{ccrr} &\text { Beginning } & {\text { Ending }} \\ Income~ tax ~payable&\$ 50 & \$ 30 \\ Deferyed ~tax ~liability&80 & 140 \end{array}$ Income tax expense was $230 for the year. What was the amount paid for taxes?

A) $280. B) $220. C) $210. D) $190. A) $280. B) $220. C) $210. D) $190.

Selected information from Peridot Corporation's accounting records and financial statements for 2018 is as follows ($ in millions): $\begin{array}{lll} \text {Cash paid to acquire machinery }&\$36\\ \text {Reacquired Peridot common stock }&50\\ \text {Proceeds from sale of land }&90\\ \text {Gain from the sale of land }&52\\ \text {Investment revenue received }&66\\ \text {Cash paid to acquire office equipment }&80\\ \end{array}$ In its statement of cash flows, Peridot should report net cash outflows from investing activities of:

A) $26 million. B) $46 million. C) $72 million. D) $78 million. A) $26 million. B) $46 million. C) $72 million. D) $78 million.

The accounting records of Eastlake Industries provided the data below. \[\begin{array} { | l | l | } \hline \text { Net income } & \$ 300,000 \\ \hline \text { Depreciation expense } & 15,000 \\ \hline \text { Increase in inventory } & 2,000 \\ \hline \text { Increase in accounts receivable } & 1,400 \\ \hline \text { Decrease in interest payable } & 1,600 \\ \hline \text { Amortization of bond premium } & 3,000 \\ \hline \text { Increase in accounts payable } & 7,000 \\ \hline \text { Cash dividends paid } & 20,000 \\ \hline \end{array}\] Required: Prepare a reconciliation of net income to net cash flows from operating activities.

The answer of The accounting records of Eastlake Industries provided...

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. \[\begin{array} { | l | l | l | } \hline \text { CLASSIFICATION } & \text { TRANSACTIONS } & \text { NUMBER } \\ \hline \text { 1. Operating cash outflow } & \begin{array} { l } \text { Interest received on cash } \text { savings account. }\\ \end{array} & -\\ \hline \text { 2. Not reported for the statement of cash flows} & \text { Cash purchase of inventory. } &- \\ \hline \text { 3. Financing cash outflow } & \text { Cash dividends received under the equity method. } & -\\ \hline \text { 4. Operating cash inflow } & \text { Principal payment on a note. } & -\\ \hline \text { 5. Investing cash inflow } & \begin{array} { l } \text { Distribution of a stock } \text { dividend. }\\ \end{array} & -\\ \hline \end{array}\]

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

Rampart Inc. recorded the following transaction: \[\begin{array} { | l | r | r | } \hline \text { Larnd } & 15 \mathrm { million } & \\ \hline \text { Notes payable } & & 12 \mathrm { million } \\ \hline \text { Cash } & & 3 \mathrm { million } \\ \hline \end{array}\] In the statement of cash flows, this would be reported as a:

A) $3 million outflow from investing activities. B) $15 million outflow from investing activities. C) $3 million outflow from investing activities and $12 million noncash investing and financing activity. D) None of these answer choices are correct. A) $3 million outflow from investing activities. B) $15 million outflow from investing activities. C) $3 million outflow from investing activities and $12 million noncash investing and financing activity. D) None of these answer choices are correct.

Exam 21: The Statement of Cash Flows Revisited

Selected information from Isadore Bell Corporation's accounting records and financial statements for 2018 is as follows ($ in millions): In its statement of cash flows, Isadore Bell should report net cash outflows from investing activities of:

(Multiple Choice)

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Question 121

Sneed Corporation reported balances in the following accounts for the current year: Beginning Ending Income\nobreakspacetax\nobreakspacepayable \ 50 \ 30 Deferyed\nobreakspacetax\nobreakspaceliability 80 140 Income tax expense was $230 for the year. What was the amount paid for taxes?

(Multiple Choice)

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Question 122

Each year, White Mountain Enterprises (WME) prepares a reconciliation schedule that compares its income statement with its statement of cash flows on both the direct and indirect method bases. In its 2018 income statement, WME reported $440,000 for the cost of goods sold. WME paid inventory suppliers $380,000 in 2018, and its inventory balance decreased by $41,000 during the year. In its reconciliation schedule, WME should:

(Multiple Choice)

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Question 123

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

(Essay)

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Question 124

The sale of stock and the sale of bonds are reported as financing activities. Are payments of dividends to shareholders and payments of interest to bondholders also reported as financing activities? Explain.

(Essay)

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Question 125

When treasury stock is sold at an amount less than its cost, the sale is classified as:

(Multiple Choice)

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Question 126

Which of the following is not an inflow of cash?

(Multiple Choice)

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Question 127

When a company purchases a security it considers a cash equivalent, the cash outflow is:

(Multiple Choice)

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Question 128

Selected information from Peridot Corporation's accounting records and financial statements for 2018 is as follows ($ in millions): Cash paid to acquire machinery \3 6 Reacquired Peridot common stock 50 Proceeds from sale of land 90 Gain from the sale of land 52 Investment revenue received 66 Cash paid to acquire office equipment 80 In its statement of cash flows, Peridot should report net cash outflows from investing activities of:

(Multiple Choice)

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Question 129

On January 1, Jim Shorts Corporation issued $300 million face value bonds for $580 million. During the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared by the indirect method, Jim Shorts Corporation should report:

(Multiple Choice)

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Question 130

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

Payment of cash dividends.

Not reported for the statement of cash flows

Purchase of treasury stock.

Noncash financing and investing activity

Investment of excess cash in an interest-bearing security classified as a cash equivalent.

Financing cash outflow

Correct Answer:

Verified

Payment of cash dividends.

Purchase of treasury stock.

Investment of excess cash in an interest-bearing security classified as a cash equivalent.

Appropriation of retained earnings for expansion of the R&D program.

(Matching)

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Question 131

Cash flows from investing activities do not include cash payments to:

(Multiple Choice)

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Question 132

The accounting records of Eastlake Industries provided the data below. Net income \ 300,000 Depreciation expense 15,000 Increase in inventory 2,000 Increase in accounts receivable 1,400 Decrease in interest payable 1,600 Amortization of bond premium 3,000 Increase in accounts payable 7,000 Cash dividends paid 20,000 Required: Prepare a reconciliation of net income to net cash flows from operating activities.

(Essay)

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Question 133

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 NUMBER 1. Operating cash outflow Interest received on cash savings account. - 2. Not reported for the statement of cash flows Cash purchase of inventory. - 3. Financing cash outflow Cash dividends received under the equity method. - 4. Operating cash inflow Principal payment on a note. - 5. Investing cash inflow Distribution of a stock dividend. -

(Essay)

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Question 134

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. -Financing cash inflow

(Multiple Choice)

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Question 135

Cash equivalents generally would not include short-term investments in:

(Multiple Choice)

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Question 136

In using a spreadsheet to prepare the statement of cash flows, the summary entries duplicate the actual journal entries used to record the transactions during the year.

(True/False)

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Question 137

Rampart Inc. recorded the following transaction: Larnd 15 Notes payable 12 Cash 3 In the statement of cash flows, this would be reported as a:

(Multiple Choice)

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Question 138

Which of the following would be added to net income when determining cash flows from operating activities under the indirect method?

(Multiple Choice)

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Question 139

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

(Essay)

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Question 140

Showing 121 - 140 of 192

Selected information from Isadore Bell Corporation's accounting records and financial statements for 2018 is as follows ($ in millions): In its statement of cash flows, Isadore Bell should report net cash outflows from investing activities of:

Sneed Corporation reported balances in the following accounts for the current year: Beginning Ending Income\nobreakspacetax\nobreakspacepayable \ 50 \ 30 Deferyed\nobreakspacetax\nobreakspaceliability 80 140 Income tax expense was $230 for the year. What was the amount paid for taxes?

The sale of stock and the sale of bonds are reported as financing activities. Are payments of dividends to shareholders and payments of interest to bondholders also reported as financing activities? Explain.

When treasury stock is sold at an amount less than its cost, the sale is classified as:

Which of the following is not an inflow of cash?

When a company purchases a security it considers a cash equivalent, the cash outflow is:

On January 1, Jim Shorts Corporation issued $300 million face value bonds for $580 million. During the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared by the indirect method, Jim Shorts Corporation should report:

Cash flows from investing activities do not include cash payments to:

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. -Financing cash inflow

Cash equivalents generally would not include short-term investments in:

In using a spreadsheet to prepare the statement of cash flows, the summary entries duplicate the actual journal entries used to record the transactions during the year.

Rampart Inc. recorded the following transaction: Larnd 15 Notes payable 12 Cash 3 In the statement of cash flows, this would be reported as a:

Which of the following would be added to net income when determining cash flows from operating activities under the indirect method?

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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