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Exam 21: The Statement of Cash Flows

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Question 41

Multiple Choice

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Companies may report interest received and dividends received as investing activities using:

A) U.S.GAAP.
B) IFRS.
C) Both U.S.GAAP and IFRS.
D) Neither U.S.GAAP nor IFRS.

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

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Question 42

Multiple Choice

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Which of the following is not an inflow of cash?

A) Depletion.
B) Cash borrowed on a short-term note.
C) Sale of a computer.
D) Cash borrowed on a long-term note.

E) None of the above
F) B) and D)

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Question 43

Multiple Choice

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In preparing its cash flow statement for the year ended December 31,2016,Green Co.gathered the following data: In its December 31,2016,statement of cash flows,what amount should Green report as net cash from financing activities?

Lite Travel Company's accounting records include the following information: What is the amount of net cash provided by operating activities indicated by the amounts provided?

When one enters a $50,000 credit entry to the Land account in a spreadsheet for the statement of cash flows,it represents a negative change in that account and probably is due to selling such assets.

Generally speaking,cash flows from operating activities include the elements of net income reported on a cash basis.

The accounting records of Harrison Company provided the data below. Required: Prepare a reconciliation of net income to net cash flows from operating activities.

An analyst compiled the following information for U Inc.for the year ended December 31,2016: Net income was $1,700,000. Depreciation expense was $400,000. Interest paid was $200,000. Income taxes paid were $100,000. Common stock was sold for $200,000. Preferred stock (8% annual dividend) was sold at par value of $250,000. Common stock dividends of $50,000 were paid. Preferred stock dividends of $20,000 were paid. Equipment with a book value of $100,000 was sold for $200,000. Using the indirect method,what was U Inc.'s net cash flow from operating activities for the year ended December 31,2016?

A firm reported salary expense of $239,000 for the current year.The beginning and ending balances in salaries payable were $40,000 and $15,000,respectively.What was the amount of cash paid for salaries?

S Company reported net income for 2016 in the amount of $400,000.The company's financial statements also included the following: What is net cash provided by operating activities under the indirect method?

Which of the following is always reported as an outflow of cash?

Partial balance sheets for Yarborough Company and additional information are found below. Additional information for 2016: July 1: Issued 10,000 shares of common stock for cash. July 1: Purchased new equipment for cash. Dec.31 Paid cash dividends of $30,000. Required: Prepare the investing activities section of the statement of cash flows for 2016.

A loss on the sale of machinery should be reported in the statement of cash flows as:

In its 2016 income statement,WME reported $440,000 for the cost of goods sold.WME paid inventory suppliers $380,000 in 2016,and its inventory balance decreased by $41,000 during the year.In its reconciliation schedule,WME should:

When a transfer is made between cash and cash equivalents with no gain or loss,how is the transaction treated in the statement of cash flows?

Payments to acquire bonds of other corporations should be classified on a statement of cash flows as:

In its 2016 income statement,WME reported a $40,000 loss on the sale of equipment.In its reconciliation schedule,WME should:

Partial balance sheets and additional information are listed below for Monaco Company. Additional information for 2016: Net income was $270,000. Depreciation expense was $30,000. Sales totaled $800,000. Cost of goods sold totaled $305,000. Required: Prepare the summary entry for the amount of cash paid to merchandise suppliers during 2016.

Transactions that represent noncash investing and financing activities must be reported in the statement of cash flows or in disclosure notes.

Which of the following causes a change in cash?