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88.
Refer to the information above. Net cash flow from operating activities for the current year
is:
An analysis of Kenny Corporation's Investment in Marketable Securities account during
2015 disclosed the following:
Kenny's 2015 income statement included a $90,000 loss on sale of marketable securities
and $65,000 dividend income from marketable securities. All payments and proceeds
relating to marketable securities transactions were in cash.
89.
Refer to the information above. The amount of cash paid by Kenny Corporation in 2015 for
the purchase of marketable securities was:
90.
Refer to the information above. The cash proceeds received by Kenny Corporation in 2015
for the sale of marketable securities was:
91.
Refer to the information above. How should the transactions involving marketable
securities be classified in Kenny's statement of cash flows for 2015?
13-43
92.
Refer to the information above. Based solely on the above information, Kenny's net cash
flow from investing activities for 2015 is:
An analysis of changes in selected balance sheet accounts of Johnson Corporation shows
the following for the current year:
Johnson's income statement for the current year includes a $14,000 loss on disposal of
plant assets. All payments and proceeds relating to purchase or sale of plant assets were
in cash.
93.
Refer to the information above. The amount of cash paid by Johnson to acquire plant
assets during the current year was:
94.
Refer to the information above. Total cash proceeds received by Johnson from sales of
plant assets during the current year amounted to:
95.
Refer to the information above. How should purchases, sales, and depreciation of plant
assets be classified in Johnson's statement of cash flows for the current year? (Assume the
direct method is used by Johnson.)
96.
Refer to the information above. Based solely on the data provided above, Johnson's net
cash flow from investing activities for the current year is:
An analysis of changes in selected balance sheet accounts of Hierarchy Corporation shows
the following for the current year:
Hierarchy's income statement for the current year includes a $9,600 gain on disposal of
plant assets. All payments and proceeds relating to purchase or sale of plant assets were
in cash.
97.
Refer to the information above. The amount of cash paid by Hierarchy to acquire plant
assets during the current year was:
98.
Refer to the information above. Total cash proceeds received by Hierarchy from sales of
plant assets during the current year amounted to:
99.
Refer to the information above. How should purchases, sales, and depreciation of plant
assets be classified in Hierarchy's statement of cash flows for the current year? (Assume
the direct method is used by Hierarchy.)
100.
Refer to the information above. Based solely on the data provided above, Hierarchy's net
cash flow from investing activities for the current year is:
101.
Haven Corporation issued $700,000 of 10-year bonds payable at par in 2011. During 2015
Haven paid $50,000 interest and an additional $233,333 to retire one-third of the bonds at
par. These activities would be reported in Haven's statement of cash flows for 2015 as:
102.
Hines Cannery issued capital stock in 2015 for $700,000. During 2015 the company paid
dividends of $250,000. What is the effect of these events in Hines' statement of cash flows
for 2015?
103.
The accountant for Foster Institute, Inc., determined the cash flow for several transactions
to be as follows:
On the basis of the above transactions alone, determine the net cash flow from financing
activities.
104.
The 2015 statement of cash flows of Dickens Corporation shows $500,000 cash paid for
dividends. If dividends in Dickens' statement of retained earnings are reported at $550,000
then:
During 2015, the cash flows related to Global Data, Inc.'s lending and borrowing activities
are summarized as follows:
105.
Refer to the information above. On the basis of the above information alone, what is Global
Data's net cash flow from financing activities?
106.
Refer to the information above. If Global Data's income statement for 2015 reports interest
expense of $25,200, then:
107.
Refer to the information above. If interest receivable was $6,300 at December 31, 2014, and
is $10,500 at the end of 2015, interest revenue reported in Global Data's income statement
for 2015 must have been:
108.
During 2015, Gillespie Corporation made a loan of $155,000 to a major customer. By the
end of 2015 the customer had paid back $60,000 of the loan plus interest of $12,000. In the
statement of cash flows for 2015, Gillespie Corporation would report:
109.
Which method will yield higher cash flows from operating activities?
110.
Which of the following statements regarding the direct and indirect methods of reporting
cash flow from operating activities is
false
?
111.
Which of the following would
not
be presented in the cash flows from operating activities
section of the statement of cash flows when the direct method is used?
112.
Which statement is true as to the FASB's position on the presentation of the statement of
cash flows?
113.
Which of the following does
not
create a difference between net income and the net cash
flow from operations?
114.
Cigna Corporation's 2015 net income is smaller than net cash flow from operating
activities. Which of the following would
not
be an explanation of why net income is smaller
than net cash flow from operating activities?
115.
When using the indirect method, depreciation expense:
116.
Which of the following is
not
true regarding the direct and indirect methods of computing
net cash flow from operating activities?
117.
Craig Corporation's reported net income for 2015 is less than its net cash flow from
operating activities. One reason for this could be:
118.
The Nelson Corporation reported net income in excess of its net cash flow from operating
activities for the current year. An explanation for this may be:
119.
All of the following are advantages of an increasing cash flow from operations
except
:
120.
When net cash flow from operating activities is presented by the direct method, the
statement of cash flows is accompanied by a supplementary schedule reconciling:
121.
Which of the following would be presented in the cash from operating activities section of
the statement of cash flows when the indirect method is used?
122.
At the beginning of 2015, Baldwin Corporation bought an automobile for $36,000 by issuing
a note payable. The automobile has a six-year life and is depreciated using the straight-
line method. To determine net cash flow from operating activities for 2015 using the
indirect method, net income should be:
123.
Gannon Corporation uses the indirect method to prepare its statement of cash flows.
Following this approach, a gain on sale of equipment was deducted from net income in
computing net cash flow from operating activities. The most likely reason for this
adjustment is that:
