Exam 33: The Direct Method of Determining the Net Cash Provided by

Sitz Corporation's most recent comparative balance sheet and income statement appear below: Cash dividends were $11. The net cash provided by (used by) operations for the year was:

Balance sheet accounts for Hollis, Inc. contained the following amounts at the ends of years 1 and 2: The company's income statement for year 2 follows: There were no sales or retirements of plant and equipment in Year 2. Cash dividends of $5,000 were paid during Year 2. The company pays no income taxes. The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. -For Year 2, sales adjusted to a cash basis would be:

Menz Corporation's balance sheet and income statement appear below: Cash dividends were $5. Required: Prepare the operating activities section of the statement of cash flows in good form using the direct method.

Last year Cumley Company reported a cost of goods sold of $90,000. Inventories increased by $21,000 during the year, and accounts payable decreased by $14,000. The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be:

Hardey Corporation's balance sheet and income statement appear below: Cash dividends were $8. The company sold equipment for $13 that was originally purchased for $8 and that had accumulated depreciation of $8. -The net cash provided by (used by) financing activities for the year was:

Last year Madson Company reported a cost of goods sold of $800,000 on its income statement. The following additional data were taken from the company's comparative balance sheet for the year: The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be:

Balance sheet accounts for Hollis, Inc. contained the following amounts at the ends of years 1 and 2: The company's income statement for year 2 follows: There were no sales or retirements of plant and equipment in Year 2. Cash dividends of $5,000 were paid during Year 2. The company pays no income taxes. The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. -The net cash provided by operating activities for Year 2 would be:

During the year the balance in the accounts payable account decreased by $8,000. In order to adjust the company's net income to a cash basis using the direct method on the statement of cash flows, it would be necessary to:

Colley Corporation's balance sheet and income statement appear below: Cash dividends were $26. The company sold equipment for $15 that was originally purchased for $6 and that had accumulated depreciation of $2. The net cash provided by (used by) operations for the year was:

Graciana Corporation's most recent comparative balance sheet and income statement appear below: Cash dividends were $28. -The net cash provided by (used by) financing activities for the year was:

Van Cleef Company's comparative balance sheet and income statement for last year appear below: The company declared and paid $18,000 in cash dividends during the year. The company uses the direct method to determine the net cash provided by operating activities. -On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be:

The changes in Tench Company's balance sheet account balances for last year appear below: The company's income statement for the year appears below: The company declared and paid $70,000 in cash dividends during the year. The company uses the direct method to determine the net cash provided by operating activities. -On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be:

Balance sheet accounts for Hollis, Inc. contained the following amounts at the ends of years 1 and 2: The company's income statement for year 2 follows: There were no sales or retirements of plant and equipment in Year 2. Cash dividends of $5,000 were paid during Year 2. The company pays no income taxes. The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. -Net cash used for investing activities for Year 2 would be:

The most recent balance sheet and income statement of Flo Corporation appear below: Cash dividends were $33. -The net cash provided by (used by) financing activities for the year was:

The ending balance of accounts receivable was $52,500. Sales, adjusted to a cash basis using the direct method on the statement of cash flows, were $425,000. Sales reported on the income statement were $444,000. Based on this information, the beginning balance in accounts receivable was:

Hardey Corporation's balance sheet and income statement appear below: Cash dividends were $8. The company sold equipment for $13 that was originally purchased for $8 and that had accumulated depreciation of $8. -The net cash provided by (used by) operations for the year was:

Graciana Corporation's most recent comparative balance sheet and income statement appear below: Cash dividends were $28. -The net cash provided by (used by) operations for the year was:

Under the direct method of determining the net cash provided by operating activities on the statement of cash flows, an increase in taxes payable would be added to income tax expense to convert income tax expense to a cash basis.

Under the direct method of determining the net cash provided by operating activities on the statement of cash flows, an increase in accounts payable would be deducted from cost of goods sold to convert cost of goods sold to a cash basis.

The most recent balance sheet and income statement of Flo Corporation appear below: Cash dividends were $33. -The net cash provided by (used by) investing activities for the year was: