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Exam 14: Statement of Cash Flows

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Question 51

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The comparative balance sheet of Posner Company,for 2011 and the preceding year ended December 31,2010,appears below in condensed form: The income statement for the current year is as follows: Additional data for the current year are as follows: Prepare a statement of cash flows,using the indirect method of reporting cash flows from operating activities.

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Question 52

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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.

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Question 53

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The net income reported on an 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.

A company had net income of $252,000.Depreciation expense is $26,000.During the year,Accounts Receivable and Inventory increased by $15,000 and $40,000,respectively.Prepaid Expenses and Accounts Payable decreased by $2,000 and $4,000,respectively.There was also a loss on the sale of equipment of $3,000.How much cash was provided by operating activities?

Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method:

The current period statement of cash flows includes the flowing: The cash balance at the end of the period is

Selected data for the current year ended December 31 are as follows: During the current year,the cost of merchandise sold was $620,000 and the operating expenses other than depreciation were $142,000.The direct method is used for presenting the cash flows from operating activities on the statement of cash flows. Determine the amount reported on the statement of cash flows for (a)cash payments for merchandise and (b)cash payments for operating expenses.

Selected data taken from the accounting records of Laser Inc.for the current year ended December 31,are as follows: During the current year,the cost of merchandise sold was $448,500,and the operating expenses other than depreciation were $78,000.The direct method is used for presenting the cash flows from operating activities on the statement of cash flows. Required: Determine the amount reported on the statement of cash flows for: (1)Cash payments for merchandise;and (2)Cash payments for operating expenses.

If accounts payable have increased during a period

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.

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

Operating expenses other than depreciation for the year were $400,000.Prepaid expenses increased by $17,000 and accrued expenses decreased by $30,000 during the year.Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be

The direct method of preparing the operating activities section of the statement of cash flows reports major classes of gross cash receipts and gross cash payments.

Which of the following does not represent an outflow of cash and therefore would not be reported on the statement of cash flows as a use of cash?

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.

Cash dividends of $45,000 were declared during the year.Cash dividends payable were $10,000 at the beginning of the year and $15,000 at the end of the year.The amount of cash for the payment of dividends during the year is

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.

Sales reported on the income statement were $690,000.The accounts receivable balance declined $39,000 over the year.Determine the amount of cash received from customers.

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

Cash inflows and outflows are not netted in the investing or financing sections of the statement of cash flows but are separately disclosed to give the reader full information.