Exam 5: Statement of Cash Flows and Articulation

Waller Corporation had the following account balances for 2014: Waller's 2014 net income is $450,000.What amount should Waller include as net cash provided by operating activities in its 2014 statement of cash flows?

Net income for the Hot Springs Company for the most recent year was $150,000,consisting of $865,000 of revenues,$360,000 of cost of goods sold,and $365,000 of operating expenses.The following changes in current assets and current liabilities have been identified: Required: Calculate the cash flows from operating activities for the year,applying the direct method.Identify the individual amounts that would be disclosed in the statement of cash flows where possible.

Using the indirect method,cash flows from operating activities would be increased by which of the following?

The following information is available from the financial statements of Barrington Corporation for the year ended December 31,2014: What is Barrington Corporation's net cash flow from operating activities?

Which of the following is classified as a cash inflow from financing activities?

In a statement of cash flows,interest payments to lenders and other creditors should be classified as cash outflows for

Which of the following is true?

A cash dividend that is declared during an accounting period,to be paid in the next accounting period,may be presented in the statement of cash flows in which of the following ways?

Kirkland Company's prepaid rent was $40,000 at December 31,2014,and $15,000 at December 31,2013.Kirkland's income statement for 2014 reported rent expense as $10,000.What amount of cash disbursements for rent would be reported in Kirkland's net cash flows from operating activities for 2014 presented on a direct basis?

In a statement of cash flows (indirect method),depreciation is treated as an adjustment to reported net income because depreciation

Daisy Corporation reported net income of $420,000 for 2014.Changes occurred in several balance sheet accounts as follows: Additional information: In Daisy's 2014 statement of cash flows,net cash provided by operating activities should be

Supplemental disclosures required only when the statement of cash flows is prepared using the indirect method include

In a statement of cash flows using the direct method,which of the following would increase reported cash flows from operating activities?

The following pertains to the Excelsior Corp.for the year ended December 31,2014. Prepare a statement of cash flows in good form using the indirect method.Calculate the cash flow to net income and cash flow adequacy ratios for the company.

In preparing a statement of cash flows,which of the following transactions would be considered an investing activity?

In a statement of cash flows,if equipment is sold at a gain,the amount shown as a cash inflow from investing activities equals the carrying amount of the equipment

Cash flows from investing activities would be decreased by which of the following?

Which of the following is not a source of cash?

During 2014,Stewart Company reported revenues on an accrual basis of $70,000.Accounts receivable decreased during the year from $35,000 at the beginning to $24,500 at the end.How much cash was provided by collections from customers during the year?

FJR Company is preparing a forecast of its net income for the year 2014.In addition,FJR plans to construct a forecasted statement of cash flows for 2014.The balance sheet and income statement data for 2013 are presented below,as well as a forecast of the balance sheet for 2014.Management expects sales in 2014 to rise to $6,000,000.In order to achieve this level of increase,management estimates that operating expenses (specifically sales commissions)will rise to $410,134. Prepare a forecasted income statement and forecasted statement of cash flows (using the indirect method)for the year ended December 31,2014,for FJR Company.Calculate the cash flow to net income and cash flow adequacy ratios.There were no changes in stockholders' equity other than net income and cash dividends.