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Exam 14: Statement of Cash Flows

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Question 91

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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. Assume any stock issues were at par. Indicate whether the amount results in an increase or decrease in cash.

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Cash flows from fina...

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Question 92

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The statement of cash flows is an optional financial statement.

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Question 93

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For each of the following, identify whether it would be disclosed as an operating O), financing F), or investing I) activity on the statement of cash flows under the indirect method. a. ____purchased treasury stock b. ____sold equipment at book value c. ____net income d. ____sold long-term investments e. ____issued common stock f. ____depreciation expense

Complete each of the columns on the table below, indicating in which section each item would be reported on the statement of cash flows operating, investing, or financing), the amount that would be reported, and whether the item would create an increase or decrease in cash. For item that affect more than one section of the statement, indicate all affected. Assume the indirect method of reporting cash flows from operating activities. The first item has been completed as an example.

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: Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.

The board of directors declared cash dividends total $168,000 during the year. The comparative balance sheet indicated dividends payable of $46,000 at the beginning of the year and $42,000 at the end of the year. What was the amount of cash payments to stockholders during the year?

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

A ten-year bond was issued at par for $250,000 cash. This transaction should be shown on a statement of cash flows under

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. -increase in accounts receivable balance

A cash flow per share amount should be reported on the statement of cash flows.

Which of the following would not be on the statement of cash flows?

Cash, as the term is used for the statement of cash flows, could indicate either cash or cash equivalents.

Identify the section of the statement of cash flows a-d) where each of the following items would be reported. -Increase in income taxes payable

To determine cash payments for operating expenses for the statement of cash flows using the direct method, a decrease in accrued expenses is added to operating expenses payable other than depreciation.

A business issues 20-year bonds payable in exchange for preferred stock. This transaction would be reported on the statement of cash flows in

Firefly Inc. sold land for $225,000 cash. The land had been purchased five years earlier for $275,000. The loss on the sale was reported on the income statement. On the statement of cash flows, what amount should Firefly report as an investing activity from the sale of the land?

Land costing $71,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

An analysis of the general ledger accounts indicates that equipment, with an original cost of $200,000 and accumulated depreciation of $170,000 on the date of sale, was sold for $20,000 during the year. Using this information, indicate the items to be reported on the statement of cash flows using the indirect method.

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

Each of the events below may have an effect on the statement of cash flows. Designate how the event should be reported within the statement of cash flows using the codes provided below. Codes may be used more than once, or not at all. Codes I + investing activity; cash inflow I - investing activity; cash outflow F + financing activity; cash inflow F - financing activity; cash outflow O + operating activity; cash inflow O - operating activity; cash outflow NC noncash investing and financing activity Events _____ 1. Paid the weekly payroll _____ 2. Paid an account payable _____ 3. Issued bonds payable for cash _____ 4. Declared and paid a cash dividend _____ 5. Paid cash for a new piece of equipment _____ 6. Purchased treasury stock for cash _____ 7.Paid cash for stock in another company _____ 8.Received interest on a long-term bond investment _____ 9.Received cash for sales _____ 10.Sold a long-term stock investment for cash at book value