Exam 12: Reporting and Analyzing Cash Flows

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:

Holly Oaks, Inc. is preparing the company's statement of cash flows for the fiscal year just ended. Using the following information, determine the amount of cash flows from investing activities:

Define and discuss the differences between operating, investing, and financing activities.

Cash flows from selling trading securities are usually reported in the statement of cash flows as part of:

Based on the information in the following income statement and balance sheet for Monterey Corporation, determine the cash flows from operating activities using the direct method.

The cash flow on total assets ratio is computed by dividing cash flows from operations by average total assets.

The payment of cash dividends never changes the balance of retained earnings.

A dividend payment to shareholders during the year should be reported on the statement of cash flows as:

Both the direct and indirect methods yield the identical net cash flow amount provided or used by operating activities.

The accountant for Huckleberry Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: What is the ending balance for retained earnings?

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.

For each of the following independent cases, use the information provided to calculate the missing cash inflow or cash outflow using the direct method.

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

All cash transactions eventually affect noncash ___________ accounts.

When preparing the operating activities section of the statement of cash flows using the indirect method, an increase in income taxes payable is added to net income.

On a spreadsheet used to prepare the operating activities section of the statement of cash flows, depreciation expense does not require an entry in the Analysis of Changes columns because it is a noncash item.

The reporting of financing activities in the statement of cash flows is identical under either the direct or indirect methods.

Selected income statement and balance sheet account information for Quinlen Company is provided below. Calculate the company's net cash provided or used by operating activities using the indirect method. Income statement data for 2017: The company also experienced the following during 2017:

Analysis reveals that a company had a net increase in cash of $20,000 for the current year. Net cash provided by operating activities was $18,000; net cash used in investing activities was $10,000 and net cash provided by financing activities was $12,000. If the year-end cash balance is $24,000, the beginning cash balance was:

When preparing the operating section of the statement of cash flows using the indirect method, noncash expenses are _____________ net income.