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All except which of the following activities are reported on the statement of cash flows? |
Marketing Activities |
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On the statement of cash flows, activities that create long-term liabilities are usually |
financing activities |
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On the statement of cash flows, activities affecting long-term assets are |
investing activities |
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In 2014, XYZ Corporation borrowed $100,000 paid dividends of $24,000, issued 9,000 shares of stock for $25 per share, purchased land for $35,000, and received dividends of $12,000. Net income was $110,000, and depreciation for the year totaled $9,000. Accounts receivable increased $15,000. How much should be reported as net cash provided by operating activities by the indirect method? |
$110,000 9,000 (15,000) (6,000) = $104,000 |
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On the statement of cash flows, activities that obtain the cash needed to launch and sustain a company are |
financing activities |
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On the statement of cash flows, the exchange of stock for land would be reported as which of the following ? |
noncash investing and financing activities |
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Paying off bonds payable is reported on the statement of cash flows under |
financing activities |
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The sale of inventory for cash is reported on the statement of cash flows under |
operating activities |
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Selling equipment for cash is reported on the statement of cash flows under |
investing activities |
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A company used direct method to prepare the statement of cash flows. |
1. Receiving cash dividends is an operating activity. 2. Paying cash dividends is a financing activity. |
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which of the following terms on a statement of cash flows – indirect method? |
depreciation expense |
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on an indirect statement of cash flows, an increase in prepaid insurance would be |
deducted from net income |
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on an indirect method statement of cash flows, an increase in accounts payable would be |
added to net income in the operating activities section. |
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on an indirect method statement of cash flows, a gain on the sale of plant assets would be |
deducted from net income in the operating activities section. |
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creative camera co. sold equipment with a cost of $18,000 and accumulated deprecation of $10,000 for an amount that resulted in a gain of $2,000. What amount should creative report on the statement of cash flows as proceeds from sale of plant assets ? |
$18,000 – $10,000 = $8,000 $8,000 + $2,000 = $10,000 |
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Income tax Payable was $6,000 at the end of the year and $2,900 at the beginning. Income tax expense for the year totaled $59,500. What amount of cash did the company pay for income tax during the year? |
choose smallest answer |
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Credit sales totaled $820,000 accounts receivable increased by $30,000 and accounts payable decreased by $20,000. How much cash did the company collect from customers? |
820,000-30,000=790,000 |
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Inc has assembled the following data for the year ended September 30, 2014 |
cash flows from operating activities: Collections from customers 208,000 payment to suppliers (92,000) Payments to employees (73,000) payments of income tax (11000) net cash provided by (used for ) operating activities 32,000 |
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Ltd made sales of $740,000 ad had cost of goods sold of $420,000. inventory decreased by $10,000 and accounts payable decreased by $8,000. accounts payable relates solely to the purchase of inventory. Operating expenses were $200,000. How much cash did Ltd pay for the inventory during the year? |
420,000 – 10,000+ 8,000 =418,000 |
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Ltd made sales of $750,000 and had cost of goods sold of $440,000. Inventory decreased by $25,000 and accounts payable decreased by $13,000. Operating expenses were $200,000. How much was Ltd net income for the year? |
Revenues: Sales revenue 750,000 Expenses: Cost of goods sold (440,000) Other operating expenses (200,000) Net income 110,000 |
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Cream began the year with $65,000 in accounts receivable and ended the year with $60,000 in accounts receivable. If credit sales for the year were $550,000 the cash collected from costumers during the year amounted to |
Beg Bal 65,000 Sales 550,000 End Bal 60,000 Collections =555,000 |
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Cramer corporation formats operating cash flows by the indirect method. |
12.3 Q30 |
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largest financing cash flow |
Sale of equipment payment of dividends issuance of common stock purchase of equipment |
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How many items enter the computation of sheehans net cash flow from investing activities for 2014? |
2 |
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How do accounts receivable affect sheehans cash flows from operating activities for 2014? |
Increase in cash provided by operating activities |
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How do Sheehans accrued liabilities affect the company’s statement of cash flows for 2014? |
Increase in cash provided by operating activities |
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How many items enter the computation of smiths net cash provided by operating activities ? |
7 |
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Corporation accountants assembled the following data for the year ended June 30, 2014 |
Net Income 60,000 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation 9,000 Decrease in current assets other than cash 34,000 Increase in current liabilities 18,000 61,000 Net cash by operating activities 121,000 |
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The following information pertains to Dakota Company : |
Proceeds from sale of land + Loss on sale of land = Net book value 42,000 + 18,000 =60,000 |
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The following information pertains to Dakota Company : |
Cash flows from financing activities: Payment of dividends (3,000) Proceeds from sale of treasury stock 5,000 Payment of long-term debt (14,000) Net cash provided by financing activities (12,000) |
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The following information pertains to Dakota Company : |
Proceeds from sale of land 40,000 Acquisition of equipment (28,000) Collection of notes receivable 12,000 Net cash provided by investing activities 24,000 |
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The following information pertains to Dakota Company : |
Net income 60,000 Adjustments to operating activities Depreciation 13,000 Loss on sale of land 18,000 Increase in accounts receivable (7,000) Decrease in inventories 5,000 Increase in accounts payable 8,000 37,000 Net cash provided by oa 97,000 |
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