132.
When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,
the cash flows from operating activities generally affect:
133.
When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,
the cash flows from investing activities generally affect:
134.
When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,
the cash flows from financing activities generally affect:
135.
Which of the following transactions or events should be reported as a source of cash from
operating activities when using the direct method?
136.
When the operating activities section of the statement of cash flows is reported using the
direct method, the FASB requires:
137.
All of the following statements related to reporting cash flows from operating activities
under U.S. GAAP and IFRS are true
except
:
138.
All of the following statements related to preparation of the statement of cash flows under
U.S. GAAP and IFRS are true
except
:
139.
Mercury Company reports depreciation expense of $40,000 for Year 2. Also, equipment
costing $150,000 was sold for its book value in Year 2. The following selected information
is available for Mercury Company from its comparative balance sheet. Compute the cash
received from the sale of the equipment.
At December 31
Year 2
Year 1
Equipment
$600,000
$750,000
Accumulated Depreciation-Equipment
428,000
500,000
140.
Jamison Company reports depreciation expense of $35,000 for Year 2. Also, equipment
costing $140,000 was sold for a $5,000 gain in Year 2. The following selected information
is available for Jamison Company from its comparative balance sheet. Compute the cash
received from the sale of the equipment.
At December 31
Year 2
Year 1
Equipment
$610,000
$750,000
Accumulated Depreciation-Equipment
428,000
500,000
141.
Jeffreys Company reports depreciation expense of $40,000 for Year 2. Also, equipment
costing $240,000 was sold for a $10,000 loss in Year 2. The following selected information
is available for Jeffreys Company from its comparative balance sheet. Compute the cash
received from the sale of the equipment.
At December 31
Year 2
Year 1
Equipment
$510,000
$750,000
Accumulated Depreciation-Equipment
328,000
500,000
142.
Bagwell’s net income for the year ended December 31, Year 2 was $185,000. Information
from Bagwell’s comparative balance sheets is given below. Compute the cash received
from the sale of its common stock during Year 2.
At December 31
Year 2
Year 1
Common Stock, $5 par value
$500,000
$450,000
Paid-in capital in excess of
par
948,000
853,000
Retained earnings
688,000
582,000
143.
Bagwell’s net income for the year ended December 31, Year 2 was $175,000. Information
from Bagwell’s comparative balance sheets is given below. Compute the cash paid for
dividends during Year 2.
At December 31
Year 2
Year 1
Common Stock, $5 par value
$500,000
$450,000
Paid-in capital in excess of
par
948,000
853,000
Retained earnings
688,000
582,000
144.
Scranton, Inc. reports net income of $230,000 for the year ended December 31. It also
reports $87,700 depreciation expense and a $5,000 gain on the sale of equipment. Its
comparative balance sheet reveals a $35,500 decrease in accounts receivable, a $15,750
increase in accounts payable, and a $12,500 decrease in wages payable. Calculate the
cash provided (used) in operating activities using the indirect method.
145.
Alvez Company reports net income of $305,000 for the year ended December 31. It also
reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment. Its
comparative balance sheet reveals a $40,200 increase in accounts receivable, a $10,200
decrease in prepaid expenses, a $15,200 increase in accounts payable, a $12,500
decrease in wages payable, and a $100,000 decrease in notes payable. Calculate the cash
provided (used) in operating activities using the indirect method.
146.
Alvez reports net income of $305,000 for the year ended December 31. It also reports
$93,700 depreciation expense and a $10,000 loss on the sale of equipment. Its
comparative balance sheet reveals a $40,200 increase in accounts receivable, a $10,200
decrease in prepaid expenses, a $15,200 increase in accounts payable, a $12,500
decrease in wages payable, a $75,000 increase in equipment, and a $100,000 decrease in
notes payable. Calculate the net increase in cash for the year.
147.
Fernwood Company is preparing the company’s statement of cash flows for the fiscal year
just ended. The following information is available:
Retained earnings balance at the beginning of the year
$233,000
Cash dividends declared for the year
$50,000
Cash dividends payable at the beginning of the year
$22,000
Cash dividends payable at the end of the year
$30,000
Net income for the year
$110,000
The ending balance in retained earnings is:
148.
Fernwood Company is preparing the company’s statement of cash flows for the fiscal year
just ended. The following information is available:
Retained earnings balance at the beginning of the year
$233,000
Cash dividends declared for the year
$50,000
Cash dividends payable at the beginning of the year
$22,000
Cash dividends payable at the end of the year
$30,000
Net income for the year
$110,000
The amount of cash paid for dividends was:
149.
Marshland Company is preparing the company’s statement of cash flows for the fiscal
year just ended. The following information is available:
Cash dividends declared for the year
$40,000
Cash dividends payable at the beginning of the year
$17,000
Cash dividends payable at the end of the year
$13,000
The amount of cash paid for dividends was:
150.
An increase in the accounts receivable account during the year should be reported on the
statement of cash flows as:
151.
A decrease in the inventory account during the year should be reported on the statement
of cash flows as:
152.
A dividend payment to shareholders during the year should be reported on the statement
of cash flows as:
12–99
153.
Northington, Inc. is preparing the company’s statement of cash flows for the fiscal year
just ended. Using the following information, determine the amount of cash flows from
operating activities using the indirect method:
Net income
$182,000
Gain on the sale of equipment
12,300
Proceeds from the sale of equipment
92,300
Depreciation expense-equipment
50,000
Payment of bonds at maturity
100,000
Purchase of land
200,000
Issuance of common stock
300,000
Increase in merchandise inventory
35,400
Decrease in accounts receivable
28,800
Increase in accounts payable
23,700
Payment of cash dividends
32,000
154.
Northington, Inc. is preparing the company’s statement of cash flows for the fiscal year
just ended. Using the following information, determine the amount of cash flows from
investing activities:
Net income
$182,000
12-100
Gain on the sale of equipment
12,300
Proceeds from the sale of equipment
92,300
Depreciation expense-equipment
50,000
Payment of bonds at maturity
100,000
Purchase of land
200,000
Issuance of common stock
300,000
Increase in merchandise inventory
35,400
Decrease in accounts receivable
28,800
Increase in accounts payable
23,700
Payment of cash dividends
32,000
155.
Northington, Inc. is preparing the company’s statement of cash flows for the fiscal year
just ended. Using the following information, determine the amount of cash flows from
financing activities:
Net income
$182,000
Gain on the sale of equipment
12,300
Proceeds from the sale of
equipment
92,300
Depreciation expense–
equipment
50,000