Chapter 24 – The Statement of Cash Flows
61. Cannon Manufacturing Co. sold equipment that cost $18,000 for $6,000. A loss on sale of
$1,000 was recorded. How is the Cash Flows from Investing Activities affected?
62. Eleemosynary Organization acquired land valued at $56,000 for 4,200 shares of its stock.
Where on the Statement of Cash flows does this transaction activity appear?
63. Corporations do not commonly use the direct method for the Statement of Cash Flows
because
Chapter 24 – The Statement of Cash Flows
The Natural Company’s cash balance at December 31, 2015, was $150,000. The following
information was reported on the company statement of cash flows for 2013:
67. The Natural Company’s Statement of Cash Flows would report Cash Flows from
Operating Activities totaling:
Chapter 24 – The Statement of Cash Flows
24–26
Chapter 24 – The Statement of Cash Flows
Short Answer Questions
71. The current assets and liabilities of the Lionel Corporation on December 31, 2014 and
2013, are listed below. Lionel’s net income for 2014 was $75,000. Included in its expenses
was depreciation of $17,000. Prepare a schedule of cash flows from operating activities for
2014.
24–31
74. The following information is taken from the accounting records of the Gilford
Corporation. Use this information to prepare Gilford’s statement of cash flows for the year
ended December 31, 2014.
Additional information:
(a) Plant construction costing $40,000 in cash was completed.
(b) Equipment was purchased for $20,000 in cash.
(c) Common stock was sold for $50,000 in cash.
(d) Bonds were issued for $15,000 in cash.
(e) Common stock dividends of $20,000 were paid in cash.
(f) Net income after income taxes was $35,000.
Chapter 24 – The Statement of Cash Flows
24–32
