Exam 15: How Well Am I Doing Statement of Cash Flows

Orebic Department Store had net income of $642,000 for the year just ended. Orebic collected the following additional information to prepare its statement of cash flows for the year: Orebic uses the indirect method to prepare its statement of cash flows. What is Orebic's net cash provided (used) by operating activities?

An increase in the bonds payable account of $200,000 over the course of a year would be shown on the company's statement of cash flows prepared under the indirect method as:

The issuance of a stock dividend will appear in the financing activities section of the statement of cash flows.

Goetter Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was $5,000 and its cash dividends were $2,000. Required: Classify the change for the year in each balance sheet account as a source, use, or neither a source nor a use. (Do this only for the individual accounts-not for totals or subtotals.)

The following events occurred last year for the Cashback Company: Based solely on the above information, the net cash provided by financing activities for the year on the statement of cash flows was:

Last year Marmin Company sold equipment with a net book value of $120,000 for $160,000 in cash. This equipment was originally purchased for $230,000. What will be the net effect of this transaction on the net cash provided by investing activities on last year's statement of cash flows?

In a statement of cash flows, a change in prepaid expenses would be classified as:

The following transactions occurred last year at Jowlson Company: Based solely on the above information, the net cash provided by financing activities for the year on the statement of cash flows would be:

Which of the following would be considered a "use" of cash for purpose of constructing a statement of cash flows?

Ebner Corporation's balance sheet and income statement appear below: Cash dividends were $37. The company sold equipment for $18 that was originally purchased for $10 and that had accumulated depreciation of $9. The net cash provided by (used by) investing activities for the year was:

Veale Corporation's most recent balance sheet appears below: Net income for the year was $107. Cash dividends were $29. -The net cash provided by (used by) investing activities for the year was:

Wander Company's comparative balance sheet and income statement for last year appear below: The company declared and paid $39,000 in cash dividends during the year. The following questions pertain to the company's statement of cash flows. -The net cash provided by (used in) operating activities last year was:

Strei Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was ($6,000) and its cash dividends were $4,000. The total dollar amount of all of the items that would be classified as sources when compiling a simplified statement of cash flows is:

Grading Company's cash and cash equivalents consist of cash and marketable securities. Last year the company's cash account decreased by $14,000 and its marketable securities account increased by $18,000. Cash provided by operating activities was $21,000. Net cash used for financing activities was $22,000. Based on this information, the net cash flow from investing activities on the statement of cash flows was:

Burgett Corporation's balance sheet and income statement appear below: Cash dividends were $41. The company sold equipment for $15 that was originally purchased for $4 and that had accumulated depreciation of $4. -The net cash provided by (used by) investing activities for the year was:

Megenity Company's net income last year was $194,000. Changes in the company's balance sheet accounts for the year appear below: The company declared and paid cash dividends of $132,000 last year. The following questions pertain to the company's statement of cash flows. -The net cash provided by (used in) operating activities last year was:

Kassebaum Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was $13,000 and its cash dividends were $1,000. -The total dollar amount of all of the items that would be classified as sources when compiling a simplified statement of cash flows is:

The most recent balance sheet and income statement of Schneekloth Corporation appear below: Cash dividends were $37. The net cash provided by (used by) operations for the year was:

The most recent balance sheet and income statement of Teramoto Corporation appear below: Cash dividends were $18. -The net cash provided by (used by) investing activities for the year was:

In the preparation of a statement of cash flows all of the following would be classified as investing activities except: