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Exam 13: Statement of Cash Flows

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Question 31

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The comparative balance sheets of Posner Company, for Years 1 and 2 ended December 31, appear below in condensed form: ​ ​ Additional data for the current year are as follows: ​ What are the net cash flows from operating, investing, and financing activities for Year 2? ​

A) operating: $108,000; investing: ($105,200) ; financing: ($60,000)
B) operating: $151,800; investing: ($84,200) ; financing: ($64,600)
C) operating: $122,200; investing: ($84,200) ; financing: ($35,000)
D) operating: $172,200; investing: ($109,200) ; financing: ($60,000)

E) A) and B)
F) B) and D)

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Question 32

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The following two scenarios are independent of one another.

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Question 33

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Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

A building with a book value of $54,000 is sold for $63,000 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as follows:

A cash flow per share amount should be reported on the statement of cash flows.

Identify the section of the statement of cash flows (a-d) where each of the following items would be reported. -Increase in income taxes payable

On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include

Cost of goods sold reported on the income statement was $155,000. The accounts payable balance increased $8,000, and the inventory balance increased by $21,000 over the year. Determine the amount of cash paid for merchandise.

A ten-year bond was issued at par for $250,000 cash. This transaction should be shown on a statement of cash flows under

The last item on the statement of cash flows prior to the schedule of noncash investing and financing activities reports

For each of the following activities that may take place during the accounting period, indicate the effect (a-g) on the statement of cash flows prepared using the indirect method. Choices may be selected as the answer for more than one question. -Exchange of land for common stock

If land costing $145,000 was sold for $205,000, the $60,000 gain on the sale would be added to net income in the operating activities section of the statement of cash flows (prepared by the indirect method).

Under GAAP, cash receipts from interest and dividends are classified as

Cash flow per share is

The net income reported on the income statement for the current year was $58,000. Depreciation recorded on fixed assets for the year was $24,000. In addition, equipment with an original cost of $130,000 and accumulated depreciation of $115,000 on the date of the sale, was sold for $20,000. Balances of the current asset and current liability accounts at the end and beginning of the year are listed below. Prepare the cash flows from operating activities section of a statement of cash flows using the indirect method. $\begin{array}{lrr}&\text { End } & \text { Beginning } \\\text { Cash } & \$ 65,000 & \$ 70,000 \\\text { Accounts receivable (net) } & 70,000 & 63,000 \\\text { Inventories } & 85,000 & 102,000 \\\text { Prepaid expenses } & 4,000 & 4,500 \\\text { Accounts payable (merchandise creditors) } & 50,000 & 58,000 \\\text { Cash dividends payable } & 4,500 & 6,500 \\\text { Sal aries payable } & 6,000 & 7,500\end{array}$

Cash flows from financing activities, as part of the statement of cash flows, would include any payments for dividends.

Sales for the year were $600,000. Accounts receivable were $100,000 and $80,000 at the beginning and end of the year, respectively. Cash received from customers to be reported on the statement of cash flows using the direct method is

Free cash flow is

For each of the following activities that may take place during the accounting period, indicate the effect (a-g) on the statement of cash flows prepared using the indirect method. Choices may be selected as the answer for more than one question. -Acquisition of treasury stock

The statement of cash flows reports a firm's major sources of cash receipts and major uses of cash for a period of time.