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Exam 15: Statement of Cash Flows

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Question 101

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Last year Anderson Corporation reported a cost of goods sold of $115,000. The company's inventory at the beginning of the year was $14,000, and its inventory at the end of the year was $23,500. The prepaid expense account increased by $3,500 between the beginning and end of the year, and the accounts payable account decreased by $5,500. Cost of goods sold adjusted to the cash basis under the direct method would be:

A) $106,000
B) $124,000
C) $130,000
D) $128,000

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

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Question 102

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Comparative balance sheets and the income statements for Ellis Corporation are presented below: The following additional information is available for the year:* During the year, the company sold long-term investments for $42,300 that had been purchased for $44,800.* The company did not sell any property, plant, and equipment during the year or repurchase any of its own common stock.* All sales were on credit.* The company paid a cash dividend of $7,900.* The company paid cash to retire $16,200 of bonds payable. Required:a. Using the indirect method, determine the net cash provided by (used in) operating activities.b. Using the direct method, determine the net cash provided by (used in) operating activities.c. Using the net cash provided by (used in) operating activities amount from either part a or b, prepare a statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)

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a. Net cash provided by (used ...

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Question 103

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Klutz Dance Studio had net income of $167,000 for the year just ended. Klutz collected the following additional information to prepare its statement of cash flows for the year: Klutz uses the indirect method to prepare its statement of cash flows. What is Klutz's net cash provided by (used in) operating activities?

Salsedo Corporation's balance sheet and income statement appear below: Cash dividends were $9. The company sold equipment for $15 that was originally purchased for $10 and that had accumulated depreciation of $5. It did not issue any bonds payable or repurchase any of its own common stock.The net cash provided by (used in) operating activities for the year was:

The changes in Northrup Corporation's balance sheet account balances for last year appear below: The company's income statement for the year appears below: The company declared and paid $28,000 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.On the statement of cash flows, the income tax expense adjusted to a cash basis would be:

Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, a decrease in inventory would be added to net income.

Adah Corporation prepares its statement of cash flows using the indirect method. Which of the following would be subtracted from net income in the operating activities section of the statement?

The most recent balance sheet and income statement of Penaloza Corporation appear below: The company paid a cash dividend of $18. It did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) investing activities for the year was:

Excerpts from Deblois Corporation's comparative balance sheet appear below: Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?

The data given below are from the accounting records of the Kuhn Corporation: Based on this information, the net cash provided by (used in) operating activities using the indirect method would be:

Negative free cash flow suggests that the company generated enough cash flow from its operating activities to fund its capital expenditures and dividend payments.

Dauber Corporation's comparative balance sheet and income statement for last year appear below: The company declared and paid a cash dividend of $55,000 during the year. It did not sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock.Required:a. Construct in good form the operating activities section of the company's statement of cash flows for the year.b. Construct in good form the investing activities section of the company's statement of cash flows for the year.c. Construct in good form the financing activities section of the company's statement of cash flows for the year.

Comparative balance sheets and the income statements for Ellis Corporation are presented below: The following additional information is available for the year:* During the year, the company sold long-term investments for $35,500 that had been purchased for $38,000.* The company did not sell any property, plant, and equipment during the year or repurchase any of its own common stock.* All sales were on credit.* The company paid a cash dividend of $25,000.* The company paid cash to retire $15,000 of bonds payable.Required:a. Using the indirect method, determine the net cash provided by (used in) operating activities.b. Using the direct method, determine the net cash provided by (used in) operating activities.c. Using the net cash provided by (used in) operating activities amount from either part a or b, prepare a statement of cash flows.Garrison 16e Rechecks 2017-11-21

Clayborn Corporation's net cash provided by operating activities was $111,000; its net income was $101,000; its income taxes were $43,000; its capital expenditures were $90,000; and its cash dividends were $28,000.Required:Determine the company's free cash flow.

Thunder Corporation's balance sheet and income statement appear below: The company did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $24.Required:Prepare a statement of cash flows in good form using the indirect method.

Mattix Corporation's balance sheet and income statement appear below: The company sold equipment for $20 that was originally purchased for $7 and that had accumulated depreciation of $1. It paid a cash dividend during the year and did not issue any bonds payable or repurchase any of its own common stock.Required:Determine the net cash provided by (used in) operating activities for the year using the indirect method.

Digby Corporation's balance sheet and income statement appear below: Cash dividends were $29. The company did not dispose of any property, plant, and equipment during the year.Required:Prepare the operating activities section of the statement of cash flows in good form using the direct method.

Salsedo Corporation's balance sheet and income statement appear below: Cash dividends were $9. The company sold equipment for $15 that was originally purchased for $10 and that had accumulated depreciation of $5. It did not issue any bonds payable or repurchase any of its own common stock.The net cash provided by (used in) investing activities for the year was:

The direct method of preparing the statement of cash flows will show the same increase or decrease in cash as the indirect method.

The change in each of Kendall Corporation's balance sheet accounts last year follows: Kendall Corporation's income statement for the year was: There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in) operating activities on the statement of cash flows is determined using the direct method.Using the direct method, the cost of goods sold adjusted to a cash basis would be: