Exam 3: Income Flows Versus Cash Flows: Understanding the Statement of Cash Flows

The period in which a firm commences the manufacture of its product to the time it receives cash is called the ______________________________.

Indicate if any of the events will be reported as a significant noncash transaction.

Clarion Industries manufactures computer equipment and provides financing for purchases by its customers.Clarion reported sales and interest revenues of $79,500 million for 2010.The balance sheet showed current and noncurrent receivables of $ 30,750 million at the beginning of 2010 and $ 26,900 million at the end of 2010.Compute the amount of cash collected from customers during 2010.

Which of the following companies would you expect to report significant amounts of cash provided by financing activities?

Which of the following is not one of the reasons why net income differs from cash flows from operations under the indirect method of calculating cash flows?

Free cash flows to all debt and common equity shareholders represents the excess of cash flows from:

Fizzzle Inc.sold a piece of equipment during the period for $230,000 and recorded a gain of $45,000 on the sale.How should this gain be treated when preparing the operating activities section of the statement of cash flows using the indirect method?

Cash flows from ____________________ activities will normally be negative during the introduction and growth phase of the product life cycle.

The acquisition of new investments would be classified as ____________________ activities in the statement of cash flows.

Cash flow from operations should include none of the cash flows associated with marketable securities if such transactions are viewed as ___________________________________.

Lui Company's 2010 income statement reported total sales revenue of $350,000.The 2009-2010 comparative balance sheets showed that accounts receivable increased by $20,000.The 2010 "cash receipts from customers" would be:

Discuss operating,investing,and financing cash flows in relation to the various stages of the product life cycle.

Krenshaw Company reported total sales revenue of $80,000,total expenses of $72,000,and net income of $8,000 for the year ended December 31,2009.During 2009,accounts receivable increased by $3,000,merchandise inventory decreased by $2,000,accounts payable increased by $1,000,and $5,000 in depreciation expense was recorded.Assuming no other adjustments to net income are needed,the net cash inflow from operating activities using the indirect method was:

Selected financial statement information for Filmco appears below: Calculate the amount of cash collected from customers and the amount of cash spent on inventory for 2010 by Filmco.

Cash collected from customers would appear in the operating activities section of a statement of cash flows prepared using the ____________________ method

Olive Corporation manufactures food processing equipment.Use Olive Corporation's two most recent balance sheets and most recent income statement to prepare a statement of cash flows for 2010.The company paid dividends of $6,250 during 2010.

____________________ ___________________ equals current assets minus current liabilities

If a firm is growing and expanding its accounts receivable and inventories faster than its current operating liabilities its cash flow from operation will normally be:

Free cash flows to all debt and common equity shareholders represents the excess of cash flow from operations over cash flows from ___________________________________.

____________________ activities relate to the normal operations of the firm,selling goods and providing services.