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

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) investing activities for the year was:

Cridwell Company's selling and administrative expenses for last year totaled $210,000. During the year the company's prepaid expense account balance increased by $18,000 and accrued liabilities increased by $12,000. Depreciation charges for the year were $24,000. Based on this information, selling and administrative expenses adjusted to a cash basis under the direct method on the statement of cash flows 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 income tax expense adjusted to a cash basis would be:

During the year just completed, Anderson Company reported a cost of goods sold of $100,000. The company's inventory at the beginning of the year was $11,000, and its inventory at the end of the year was $19,000. The Prepaid Expense account increased by $2,000 between the beginning and end of the year, and the Accounts Payable account decreased by $4,000. Cost of goods sold adjusted to the cash basis under the direct method would be:

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

Detter Corporation's balance sheet and income statement appear below: Cash dividends were $8. The company sold equipment for $20 that was originally purchased for $11 and that had accumulated depreciation of $3. Required: Using the direct method, determine the net cash provided by (used by) operating activities.

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 sales revenue adjusted to a cash basis would be:

Laperriere Corporation's balance sheet and income statement appear below: Cash dividends were $30. Required: Prepare the operating activities section of the statement of cash flows using the direct method. In other words, determine the net cash provided by or used by operating activities using the direct method.

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 sales revenue 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 provided by financing 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) 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. -Cost of goods sold adjusted to a cash basis for Year 2 would be:

Last year Lawton Company reported sales of $110,000 on its income statement. During the year, accounts receivable decreased by $10,000 and accounts payable decreased by $15,000. The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. The sales revenue adjusted to a cash basis for the year would be:

Under the direct method of determining net cash provided by operating activities on the statement of cash flows, a gain on the sale of plant assets would be:

Under the direct method of determining the net cash provided by operating activities on the statement of cash flows, an increase in account receivable would be deducted from sales revenue to convert revenue to a cash basis.

During the year the balance in the accrued liabilities account increased by $12,000. 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:

Carver Company's comparative balance sheet and income statement for last year appear below: The company declared and paid $50,000 in cash dividends during the year. Required: Construct in good form the operating activities section of the company's statement of cash flows for the year using the direct method.

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 operating expenses adjusted to a cash basis would be:

Comparative financial statements for Parr Company follow: Additional data for the year included: * During the year, Parr Company sold equipment for $3,000 that had cost $15,000 and on which there was accumulated depreciation of $8,000. * Equipment was purchased for $12,000 cash. * Cash dividends totaling $8,000 were paid. * Long-term investments that cost $18,000 when purchased were sold for $22,000. * Common stock was issued for $10,000. * Depreciation expense for the year was $5,000. Required: Prepare a statement of cash flows using the direct method.

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 operating expenses adjusted to a cash basis would be: