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Exam 16: Statement of Cash Flows

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Question 51

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Using the indirect method, if land costing $85,000 was sold for $145,000, the amount reported in the financing activities section of the statement of cash flows would be $85,000.

A) True
B) False

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Question 52

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Cash flows from investing activities, as part of the statement of cash flows, include payments for the purchase of treasury stock.

A) True
B) False

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Question 53

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A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under

Durrand Corporation's accumulated depreciation increased by $12,000, while patents decreased by $2,200 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $4,300 from sale of land. Reconcile a net income of $65,000 to net cash flow from operating activities.

The statement of cash flows is not one of the basic financial statements.

Equipment with an original cost of $75,000 and accumulated depreciation of $20,000 was sold at a loss of $7,000. As a result of this transaction, cash would

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

Cash paid to acquire treasury stock should be shown on the statement of cash flows from investing activities.

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

The following selected account balances appeared on the financial statements of the Washington Company: The Washington Company uses the direct method to calculate net cash flow from operating activities. Cash collections from customers are

Cash receipts received from the issuance of a mortgage notes payable would be classified as

Identify which section the statement of cash flows (using the indirect method) would present information regarding the following activities:

In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is

On the basis of the details of the common stock account presented below, calculate the total amount to be recorded in financing section of the statement of cash flows. Indicate whether the amount results in an increase or decrease in cash.

If $475,000 of bonds payable are sold at 101, $475,000 would be reported in the cash flows from financing activities section of the statement of cash flows.

Free cash flow is the measure of operating cash flow available for corporate purposes after providing sufficient fixed asset additions to maintain current productive capacity and dividends.

On the statement of cash flows, the cash flows from investing activities section would include

Land costing $140,000 was sold for $173,000 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

The Dickinson Company reported net income of $155,000 for the current year. Depreciation recorded on buildings and equipment amounted to $65,000 for the year. In addition, a building with an original cost of $250,000 and accumulated depreciation of $190,000 on the date of the sale, was sold for $75,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Instructions Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.

The order of presentation of activities on the statement of cash flows is