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Exam 13: Statement of Cash Flows

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Question 21

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Rogers Company reported net income of $35,000 for the year.During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $8,000 was recorded.Net cash provided by operating activities for the year is

A) $53,000
B) $47,000
C) $33,000
D) $37,000

E) All of the above
F) B) and D)

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Question 22

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On the statement of cash flows, the cash flows from financing activities section would include all of the following except

A) receipts from the sale of bonds payable
B) payments for dividends
C) payments for purchase of treasury stock
D) payments of interest on bonds payable

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

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Question 23

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Balances of the current asset and current liability accounts at the end and beginning of the year are as follows: Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.

The current period statement of cash flows includes the following:

Norris Company declared cash dividends of $60,000 during the year.Cash dividends payable were $20,000 at the beginning of the year and $25,000 at the end of the year.The amount of cash Norris Co.used for payment of dividends during the year was

Identify the section of the statement of cash flows a-d where each of the following items would be reported. -Exchange of land for note payable

The declaration and issuance of a stock dividend would be reported on the statement of cash flows.

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

Identify which section the statement of cash flows using the indirect method would present information regarding the following activities.Use O for operating, I for investing, or F for financing. a.Issued common stock b.Redeemed bonds c.Issued preferred stock d.Purchased patents e.Net income f.Paid cash dividends g.Purchased treasury stock h.Sold long-term investment i.Sold equipment j.Purchased buildings k.Issued bonds

Identify the section of the statement of cash flows a-d where each of the following items would be reported. -Sale of machinery held for use by the company

There are two alternatives to reporting cash flows from operating activities in the statement of cash flows: 1 the direct method and 2 the indirect method.

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: a Fully depreciated equipment costing $60,000 was scrapped, no salvage, and new equipment was purchased for $183,200. b Bonds payable for $100,000 were retired by payment at their face amount. c 5,000 shares of common stock were issued at $13 for cash. d Cash dividends declared and paid, $25,000. Prepare a statement of cash flow, using the indirect method of reporting cash flows from operating activities.

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

Which of the following would not be found in a schedule of noncash investing and financing activities, reported at the end of a statement of cash flows?

Which of the following should be shown on a statement of cash flows under the financing activities section?

In determining the cash flows from operating activities for the statement of cash flows by the indirect method, the depreciation expense for the period is added to the net income for the period.

The net income reported on the income statement for the current year was $275,000.Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively.Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

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. -sale of land

To determine cash payments for income taxes for the statement of cash flows using the direct method, an increase in income taxes payable is added to the income tax expense.

Income tax was $175,000 for the year.Income tax payable was $30,000 and $40,000 at the beginning and end of the year, respectively.Cash payments for income tax reported on the statement of cash flows using the direct method is