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Exam 13: Statement of Cash Flows

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Question 61

Multiple Choice

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The statement of cash flows

A) must be prepared on a daily basis.
B) summarizes the operating, financing, and investing activities of an entity.
C) is another name for the income statement.
D) is a special section of the income statement.

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

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Question 62

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Each of the following is added to net income in computing net cash provided by operating activities except

A) amortization expense.
B) an increase in accrued expenses payable.
C) a gain on sale of equipment.
D) a decrease in inventory.

E) All of the above
F) B) and D)

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Question 63

Multiple Choice

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Financing activities involve

Noncash investing and financing activities must be reported in the body of a statement of cash flows.

In calculating net cash provided by operating activities using the indirect method, an increase in prepaid expenses during a period is

In addition to the three basic financial statements, which of the following is also a required financial statement?

Cash provided by operating activities fails to take into account that a company must invest in new fixed assets just to maintain its current level of operations.

Hogan Company uses the direct method in determining net cash provided by operating activities, During the year, operating expenses were $295,000, prepaid expenses increased $23,000, and accrued expenses payable increased $33,000. Cash payments for operating expenses were

In the bottom portion of the statement of cash flows worksheet,

The statement of cash flows will not provide insight into

In the Garnet Company, the beginning and ending balances in Land were $198,000 and $240,000 respectively. During the year, land costing $50,000 was sold for $50,000 cash, and land costing $92,000 was purchased for cash. The entries in the reconciling columns of the worksheet will include a:

Under the direct method, the formula for computing cash collections from customers is sales revenues plus the increase in accounts receivable or minus the decrease in accounts receivable.

During 2014, Harvey Industries reported cash provided by operations of $670,000, cash used in investing of $1,039,000, and cash used in financing of $145,000. In addition, cash spent for fixed assets during the period was $404,000. No dividends were paid. Based on this information, what was Harvey's free cash flow?

Which of the following would not be needed to determine net cash provided by operating activities?

In developing the cash flows from operating activities, most companies in the U. S.

The net income reported on the income statement for the current year was $245,000. Depreciation was $40,000. Account receivable and inventories decreased by $12,000 and $35,000, respectively. Prepaid expenses and accounts payable increased, respectively, by $1,000 and $8,000. How much cash was provided by operating activities?

Gonzo Company reports a $25,000 increase in inventory and a $12,000 decrease in accounts payable during the year. Cost of Goods Sold for the year was $185,000. Using the direct method of reporting cash flows from operating activities, cash payments made to suppliers were

Net income for the period.

If $250,000 of bonds are issued during the year but $130,000 of old bonds are retired during the year, the statement of cash flows will show a(n)

Which one of the following items is not generally used in preparing a statement of cash flows?