54.
The purchase of treasury stock is classified in the statement of cash flows as a(n):
55.
Operating cash flows exclude:
56.
The statement of cash flows reports cash flows from the activities of:
57.
Which of the following is correct about the statement of cash flows?
58.
Which of the following is correct about the statement of cash flows?
59.
Which of the following is
not
correct about the statement of cash flows?
60.
Which of the following is
not
correct about the statement of cash flows?
61.
All classifications on the Balance Sheet have a general relationship with sections
identified on the Statement of Cash Flows. Indicate which relationships are correctly
identified in the table below.
#
Classification on the
Balance Sheet
Section on
Statement of Cash
Flows
I
Bonds Payable
Financing
II
Equipment
Operating
III
Common Stock
Financing
IV
Accounts Payable
Operating
V
Accounts Receivable
Operating
62.
Under what section of the Statement of Cash Flows would you classify dividends paid on
common stock?
63.
Under what section of the Statement of Cash Flows would you classify the purchase of
equipment by issuing a long-term note payable?
64.
Which of the following transactions would not create a cash flow?
65.
Which of the following is an example of a noncash activity?
66.
Which of the following is not true regarding cash flows?
67.
Dividends received from an investment is classified as a(an) __________ cash flow, and
paying dividends on stock issued is classified as a(an) ____________ cash flow on the
Statement of Cash Flows.
68.
The collection of cash from customers would be classified as which type of cash flow on
the Statement of Cash Flows?
69.
The indirect and direct methods:
70.
In the operating activities section of the statement of cash flows, we start with net income
when using:
71.
Arrow Printers paid $2,000 interest on short-term notes payable, $10,000 interest on long–
term bonds, and $6,000 in dividends on its common stock. Arrow would report cash
outflows from activities, as follows:
72.
Bad Brad’s BBQ had cash flows for the year as follows ($ in millions):
CASH RECEIVED FROM:
Customers
$1,800
Interest on investments
200
Sale of land
100
Sale of common stock
600
Issuance of debt securities
2,000
CASH PAID FOR:
Interest on debt
$300
Income tax
80
Debt principal reduction
1,500
Purchase of equipment
4,000
Purchase of inventory
1,000
Dividends on common stock
200
Operating expenses
500
Bad Brad’s would report net cash inflows (outflows) from operating activities in the
amount of:
Customers
$1,800
Interest on investments
200
Interest on debt
Income tax
Purchase of inventory
Operating expenses
73.
We can identify operating activities from income statement information and changes in
74.
In preparing a statement of cash flows under the indirect method, a decrease in accounts
receivable would be reported or included as a(n):
75.
In preparing a statement of cash flows under the indirect method, an increase in accounts
payable would be reported as a(n):
76.
Which of the following is NOT a correct practice when adjusting net income to net
operating cash flows?
77.
Which of the following is added to net income as an adjustment under the indirect method
of preparing the statement of cash flows?
78.
Which of the following is subtracted from net income as an adjustment under the indirect
method of preparing the statement of cash flows?
79.
Consider the following items:
(a) Decrease in accounts receivable
(f) Gain on the sale of equipment
(b) Issuance of common stock
(g) Depreciation expense
(c) Increase in interest receivable
(h) Payment of dividends
(d) Purchase of land
(i) Decrease in utilities payable
(e) Decrease in accounts payable
(j) Increase in inventory
How many of these items would be
added
to net income when using the indirect method
to prepare the operating activities section of the statement of cash flows?
80.
Consider the following items:
(a) Decrease in accounts receivable
(f) Gain on the sale of equipment
(b) Issuance of common stock
(g) Depreciation expense
(c) Increase in interest receivable
(h) Payment of dividends
(d) Purchase of land
(i) Decrease in utilities payable
(e) Decrease in accounts payable
(j) Increase in inventory
How many of these items would be
subtracted
from net income when using the indirect
method to prepare the operating activities section of the statement of cash flows?
81.
Which of the following is subtracted from net income as an adjustment under the indirect
method of preparing the statement of cash flows?
82.
Which of the following is
not
subtracted from net income as an adjustment under the
indirect method of preparing the statement of cash flows?
83.
Given the items below, which of the following is a
subtraction
from net income to arrive at
operating cash flows using the indirect method?
I. Loss on sale of assets
II. Increase in Supplies
III. Increase in Accounts Payable
IV. Depreciation expense
84.
Given the items below, which of the following is an
addition
to net income to arrive at
operating cash flows using the indirect method?
I. Loss on sale of assets
II. Increase in Supplies
III. Increase in Accounts Payable
IV. Increase in Accounts Receivable
85.
Rachel’s Recordings reported net income of $200,000. Beginning balances in Accounts
Receivable and Accounts Payable were $15,000 and $20,000, respectively. Ending
balances in these accounts were $12,000 and $22,000, respectively. Assuming that all
relevant information has been presented, Rachel’s net cash flows from operating activities
would be:
86.
Mary’s Music Store reported net income of $135,000. Beginning balances in Accounts
Receivable and Accounts Payable were $29,000 and $26,000, respectively. Ending
balances in these accounts were $30,000 and $24,000, respectively. Assuming that all
relevant information has been presented, Mary’s net cash flows from operating activities
would be:
87.
Kela Corporation reports net income of $450,000 that includes depreciation expense of
$70,000. Also, cash of $50,000 was borrowed on a 5-year note payable. Based on this
data, total cash inflows from operating activities are:
88.
Assume net income was $100,000, depreciation expense was $8,000, accounts receivable
decreased by $7,500, and accounts payable decreased by $2,500. The amount of net cash
flows from operating activities is: