Exam 12: Reporting and Analyzing Cash Flows

Typical cash flows from investing activities include each of the following except:

Noncash financing and investing activities are disclosed in a ____________ to the statement of cash flows or in a separate ______________________________.

___________________ activities generally include those transactions and events that affect long-term assets.

The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is:

The cash flow on total assets ratio is calculated by:

In preparing a company's statement of cash flows for the most recent year, the following information is available: Net cash flows from investing activities for the year were:

Jamison Company reports depreciation expense of $35,000 for Year 2. Also, equipment costing $140,000 was sold for a $5,000 gain in Year 2. The following selected information is available for Jamison Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.

Accounting standards:

Based on the following information provided about a company's operations, calculate its cost of goods purchased and its cash paid for merchandise.

The following transactions and events occurred during the year. Assuming that this company uses the indirect method to report cash provided by operating activities, indicate where each item would appear on its statement of cash flows by placing an x in the appropriate column.

The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period net income.

Use the following income statement and information about selected current assets and current liabilities for Kimberline Industries to calculate the net cash provided or used by operating activities using the indirect method. Increases and decreases of current asset and current liability accounts, all of which relate to operating activities, are as follows:

Noncash investing and financing activities may be disclosed in:

In preparing a company's statement of cash flows for the most recent year, the following information is available: Net cash flows from investing activities for the year were:

The purchase of stock in another company is classified as a financing activity.

The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:

The FASB recommends that the operating section of the statement of cash flows be reported using the direct method.

In preparing a company's statement of cash flows for the most recent year, Ransom Corp. reported the following information: Net cash flows from financing activities for the year were:

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

A company reported net income of $132,000, operating cash flows of $87,000, total cash flows of $112,000, and average total assets of $1,053,000. Calculate its cash flow on total assets ratio.