Exam 21: The Statement of Cash Flows Revisited

When a transfer is made between cash and cash equivalents with no gain or loss, how is the transaction treated in the statement of cash flows?

Assuming the decrease in accrued expenses during fiscal year 2012 included a $20,000 reduction due to taxes, compute the income tax expense for Kinney in that year.

Do "cash flows from operating activities" report all the elements of the income statement on a cash basis? Explain.

Which of the following is reported as an investing activity in the statement of cash flows?

What was the net change in cash and cash equivalents experienced by Henchman & Co. during 2012? Was it positive or negative?

Kinney reported cost of goods sold of $168,114,150 in its fiscal 2012 income statement. Assuming that Kinney uses accounts payable strictly for inventory purchases and that all such purchases are on credit, how much cash did Kinney pay during the year for inventories: (a) To inventory suppliers? (b) To employees?

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

Listed below are reporting classifications for a statement of cash flows using the indirect 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.

Partial balance sheets and additional information are listed below for Rickey Company. Additional information for 2013: Net income was $160,000. Depreciation expense was $20,000. Required: Prepare the operating activities section of the statement of cash flows for 2013 using the indirect method.

In preparing its cash flow statement for the year ended December 31, 2013, Red Co. gathered the following data: In its December 31, 2013, statement of cash flows, what amount should Red report as net cash outflows from investing activities?

Cash paid for taxes and interest must be disclosed on the face of the statement or in the disclosure notes under both the direct and indirect methods of reporting cash flows from operating activities.

Prepare the summary entries necessary to determine the amount of cash received from customers for each of the four independent situations below.

If the direct method is used to report cash flows from operating activities in the body of the statement of cash flows, a reconciliation of net income to net cash flows from operating activities also is required.

Prepare the summary entries necessary to determine the amount of cash paid to suppliers for each of the four independent situations below.

Cash equivalents have each of the following characteristics except:

Like U.S. GAAP, international standards also require a statement of cash flows. Consistent with U.S GAAP, cash flows are classified as operating, investing, or financing activities. However, with regard to interest and dividend inflows and outflows, the international standard for cash flow statements:

Freeman Company's accounting records include the following information: What is the amount of net cash provided by operating activities indicated by these transactions?

Is depreciation a source of cash? Explain.

Payments to acquire bonds of other corporations should be classified on a statement of cash flows as:

The accounting records of Westlake Industries provided the data below. Required: Prepare a reconciliation of net income to net cash flows from operating activities.