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

Spanner Company recorded the following events last year: On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities. -Based solely on the information above, the net cash provided by (used in) investing activities on the statement of cash flows would be:

Dibenedetti Corporation's net cash provided by operating activities was $221,000; its net income was $200,000; its income taxes were $86,000; its capital expenditures were $146,000; and its cash dividends were $55,000. Required: Determine the company's free cash flow.

Spettel Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was $11,000 and its cash dividends were $2,000. -Which of the following classifications of changes in balance sheet accounts as sources and uses is correct?

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. -No plant and equipment was disposed of during the year. The free cash flow for the year was:

The most recent comparative balance sheet of Benefield Corporation appears below: -Which of the following classifications of changes in balance sheet accounts as sources and uses is correct?

Which of the following should be classified as a financing activity on a statement of cash flows?

Guadiana Corporation's balance sheet and income statement appear below: Cash dividends were $34. The company sold equipment for $11 that was originally purchased for $5 and that had accumulated depreciation of $3. Required: Prepare a statement of cash flows for the year using the indirect method.

Hamblet Corporation's net cash provided by operating activities was $130; its net income was $94; its capital expenditures were $116; and its cash dividends were $19. The company's free cash flow was:

Activities such as the purchase of inventory on account should be included as part of a company's financing activities on the statement of cash flows.

In a statement of cash flows, a change in the inventories account would be classified as:

Positive free cash flow suggests that the company did not generate enough cash flow from its operating activities to fund its capital expenditures and dividend payments.

Negative free cash flow invariably signals poor performance.

The most recent comparative balance sheet of Benefield Corporation appears below: -Which of the following classifications of changes in balance sheet accounts as sources and uses is correct?

Which of the following would be classified as a financing activity on the statement of cash flows?

Lague Corporation's balance sheet and income statement appear below: Cash dividends were $12. Required: Prepare a statement of cash flows using the indirect method.

Last year Burbach Company's cash account increased by $10,000. Net cash provided by investing activities was $16,000. Net cash used in financing activities was $34,000. On the statement of cash flows, the net cash flow provided by (used in) operating activities was:

In the statement of cash flows, increases in a company's capital stock accounts are treated as a "use" rather than as a "source" of cash.

Groote Corporation's balance sheet appears below: The net income for the year was $50. Cash dividends were $12. Required: Prepare a statement of cash flows using the indirect method.

Free cash flow is net cash provided by operating activities less capital expenditures and dividends.

Excerpts from Niederhauser Corporation's comparative balance sheet appear below: Which of the following classifications of changes in balance sheet accounts as sources and uses is correct?