Exam 5: Statement of Cash Flows and Articulation

Sapphire Company reported the following information for the year 2014: Sales revenue of $280,000;cost of goods sold of $100,000;selling expenses of $40,000;administrative expenses of $35,000;depreciation of $25,000;interest expense of $8,000;and income tax expense of $28,000.All sales were made for cash and all expenses (other than depreciation and bond premium amortization of $2,000)were paid in cash.All current assets and current liabilities remained unchanged.How much cash was provided by operations for Sapphire Company during 2014?

When preparing a statement of cash flows using the indirect method,the amortization of trademarks should be reported as a(n)

American Corporation purchased a 3-month U.S.Treasury bill.In preparing American's statement of cash flows,this purchase would

The following is a comparative balance sheet of Conumdrum Corporation for December 31,2014 and 2013: Additional information: Prepare a statement of cash flows for Conumdrum Corporation for 2014,using the indirect method.Compute the cash flow to net income and cash flow adequacy ratios.

Which of the following is not a cash inflow from investing activities?

In preparing a statement of cash flows,sale of treasury stock at an amount greater than cost would be classified as a(n)

Which of the following would be an example of an investing activity?

In its accrual basis income statement for the year ended December 31,2014,Braxton Company reported revenue of $3,500,000.Additional information is as follows: Nelson should report cash collected from customers in its 2014 statement of cash flows (direct method)in the amount of

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

Silken Corp.reported net income of $420,000 for 2014.Changes occurred in several balance sheet accounts as follows: Additional information: In Silken's 2014 statement of cash flows,net cash used in investing activities should be

In a statement of cash flows,payments to acquire bonds or mortgages of other entities should be classified as cash outflows for

The amortization of a bond premium can correctly be presented in the statement of cash flows in which of the following ways?

In a statement of cash flows,payments to acquire debt instruments of other entities would typically be classified as cash outflows for

A comparative balance sheet for Meyerson Industries is given below: Additional data from the company's records were: Prepare a cash flow statement for Meyerson Industries for the year ended December 31,2014,using the indirect method.Include any necessary supplemental disclosures.

Delilah,Inc. ,presents the following comparative balance sheets and income statement (all amounts in thousands of dollars): ¹Includes interest paid in cash of $23. -See information regarding Delilah,Inc.above.The following additional information is provided: Required: Compute the following:

Partial balance sheet data and additional information for Earth Moving Industries are given below: Additional information: Prepare the investing and financing activities sections of the statement of cash flows for the year ending December 31,2014.

Citrus Inc.declared and paid cash dividends of $100,000 on common stock and $75,000 on preferred stock.How would these dividends be presented in Citrus' statement of cash flows?

In a statement of cash flows (indirect method),an increase in inventories should be presented as

The Dakota Corporation prepared,for 2014 and 2013,the following balance sheet data: Additional information: Prepare a cash flow statement for Dakota Corporation for 2014,using the indirect method.Calculate the Cash Flow to Net Income and the Cash Flow Adequacy ratios.

Which of the following is a noncash transaction that should be disclosed in a schedule accompanying the statement of cash flows?