Question 1

For each of the following separate cases, use the information provided to calculate the missing cash inflow or cash outflow:
(a)  
(b)  
(c)

Accepted Answer

The answer of For each of the following separate cases,...

Question 2

A company had total assets of $1,760,000, total cash flows of $1,320,000 and cash flows from operations of $205,000. The cash flow on total assets ratio is equal to:

Accepted Answer

A)  1.33% 
B)  8.58% 
C)  11.65% 
D)  15.5% 
E)  75% 
A)  1.33% 
B)  8.58% 
C)  11.65% 
D)  15.5% 
E)  75%

Question 3

The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers and subtracts the major items of operating cash disbursements, such as cash paid for merchandise is referred to as the:

Accepted Answer

A)  Direct method of reporting net cash provided or used by operating activities 
B)  Cash basis of accounting 
C)  Classified statement of cash flows 
D)  Indirect method of reporting net cash provided or used by operating activities 
E)  Net method of reporting cash flows from operating activities 
A)  Direct method of reporting net cash provided or used by operating activities 
B)  Cash basis of accounting 
C)  Classified statement of cash flows 
D)  Indirect method of reporting net cash provided or used by operating activities 
E)  Net method of reporting cash flows from operating activities

Question 4

The cash flow on total assets ratio reflects the company's actual cash flows and therefore, is affected by the accounting constraints of recognition and measurement for net income.

Accepted Answer

A) True 
 B)False

Question 5

Explain how to determine cash flows from investing and financing activities.

Accepted Answer

Cash flows from investing activities are

Question 6

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 by $4.0 million?

Accepted Answer

The answer of Jacob Corporation's salaries expense was $18.0 million....

Question 7

The cash flow on total assets ratio can be used as an indicator of earnings quality.

Accepted Answer

A) True 
 B)False

Question 8

Selected information from Doodle Company's for 2010 is below (in millions): 
 
What is the amount of cash paid for purchases by Doodle during 2010?

Accepted Answer

A)  $36.5 
B)  $47.5 
C)  $37.5 
D)  $35.5 
E)  $23.5 
A)  $36.5 
B)  $47.5 
C)  $37.5 
D)  $35.5 
E)  $23.5

Question 9

A spreadsheet can help organize the information needed to prepare a statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 10

The statement of cash flows is divided into three sections called the _____________, _____________ and _______________ sections.

Accepted Answer

Operating,

Question 11

Use the cash flow on total assets ratio to determine which of these three companies is using its assets most efficiently.

Accepted Answer

A)  Company A 
B)  Company B 
C)  Company C 
D)  As all the companies have the same net increase in cash, they are all equally efficient in the use of their assets 
E)  Cannot be determined from the given information 
A)  Company A 
B)  Company B 
C)  Company C 
D)  As all the companies have the same net increase in cash, they are all equally efficient in the use of their assets 
E)  Cannot be determined from the given information

Question 12

Polaroid reported net cash provided by operating activities of $131.4 million. Assets at the beginning of the year totaled $2,197.7 million and totaled $2,040.0 million at the end of the year. Calculate Polaroid's cash flow on total assets ratio.

Accepted Answer

$131.4/[($

Question 13

The appropriate section in the statement of cash flows for reporting the cash payment of wages is:

Accepted Answer

A)  Operating activities 
B)  Financing activities 
C)  Investing activities 
D)  Schedule of noncash investing or financing activity 
E)  None of these as this is not reported on the statement of cash flows 
A)  Operating activities 
B)  Financing activities 
C)  Investing activities 
D)  Schedule of noncash investing or financing activity 
E)  None of these as this is not reported on the statement of cash flows

Question 14

A company had total assets of $745,000, total cash flows of $230,000 and cash flows from operations of $50,000. The cash flow on total assets ratio is equal to:

Accepted Answer

A)  30.87% 
B)  21.74% 
C)  6.71% 
D)  5.13% 
E)  37.58% 
A)  30.87% 
B)  21.74% 
C)  6.71% 
D)  5.13% 
E)  37.58%

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

Based on the following income statement and balance sheet for Rashid Corporation, determine the cash flows from operating activities using the indirect method.

Accepted Answer

The answer of Based on the following income statement and...

Question 17

Spirit Company, a merchandiser, recently completed its 2010 calendar year. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's balance sheet and income statement follow:    
 
Additional Information on Year 2010 Transactions
 
What is the amount of dividends declared and distributed in 2010?

Accepted Answer

A)  $180,350 
B)  $8,375 
C)  $61,875 
D)  $56,600 
E)  $70,250 
A)  $180,350 
B)  $8,375 
C)  $61,875 
D)  $56,600 
E)  $70,250

Question 18

Spirit Company, a merchandiser, recently completed its 2010 calendar year. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's balance sheet and income statement follow:   
 
Additional Information on Year 2010 Transactions
 
What is the net cash flows provided (used) by financing activities?

Accepted Answer

A)  ($118,100) 
B)  $118,100 
C)  $54,100 
D)  ($54,100) 
E)  $2,500 
A)  ($118,100) 
B)  $118,100 
C)  $54,100 
D)  ($54,100) 
E)  $2,500

Question 19

The appropriate section in the statement of cash flows for reporting the purchase of land in exchange for common stock is:

Accepted Answer

A)  Operating activities 
B)  Financing activities 
C)  Investing activities 
D)  Schedule of noncash investing or financing activity 
E)  None of these as this is not reported on the statement of cash flows 
A)  Operating activities 
B)  Financing activities 
C)  Investing activities 
D)  Schedule of noncash investing or financing activity 
E)  None of these as this is not reported on the statement of cash flows

Question 20

Information to prepare the statement of cash flows usually comes from (a) comparative balance sheets, (b) current income statement and (c) additional information.

Accepted Answer

A) True 
 B)False

Exam 12: Reporting and Analyzing Cash Flows

For each of the following separate cases, use the information provided to calculate the missing cash inflow or cash outflow: (a) (b) (c)

A company had total assets of $1,760,000, total cash flows of $1,320,000 and cash flows from operations of $205,000. The cash flow on total assets ratio is equal to:

The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers and subtracts the major items of operating cash disbursements, such as cash paid for merchandise is referred to as the:

The cash flow on total assets ratio reflects the company's actual cash flows and therefore, is affected by the accounting constraints of recognition and measurement for net income.

Explain how to determine cash flows from investing and financing activities.

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 by $4.0 million?

The cash flow on total assets ratio can be used as an indicator of earnings quality.

Selected information from Doodle Company's for 2010 is below (in millions): What is the amount of cash paid for purchases by Doodle during 2010?

A spreadsheet can help organize the information needed to prepare a statement of cash flows.

The statement of cash flows is divided into three sections called the _____________, _____________ and _______________ sections.

Use the cash flow on total assets ratio to determine which of these three companies is using its assets most efficiently.

Polaroid reported net cash provided by operating activities of $131.4 million. Assets at the beginning of the year totaled $2,197.7 million and totaled $2,040.0 million at the end of the year. Calculate Polaroid's cash flow on total assets ratio.

The appropriate section in the statement of cash flows for reporting the cash payment of wages is:

A company had total assets of $745,000, total cash flows of $230,000 and cash flows from operations of $50,000. The cash flow on total assets ratio is equal to:

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.

Based on the following income statement and balance sheet for Rashid Corporation, determine the cash flows from operating activities using the indirect method.

The appropriate section in the statement of cash flows for reporting the purchase of land in exchange for common stock is:

Information to prepare the statement of cash flows usually comes from (a) comparative balance sheets, (b) current income statement and (c) additional information.

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounts and Notes Receivable

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Corporate Reporting and Analysis

Analyzing Financial Statements

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

Decentralization and Performance Evaluation

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Investments and International Operations

Accounting for Partnerships

Appendix : Accounting With Special Journals

Filters

The statement of cash flows is divided into three sections called the _______, _ and _________ sections.