Chapter 14 – Statement of Cash Flows
55. Frizz Hair Salon had net income of $93,000 for the year just ended. Frizz collected the
following additional information to prepare its statement of cash flows for the year:
Frizz uses the indirect method to prepare its statement of cash flows. What is Frizz’s net cash
provided (used) by operating activities?
Chapter 14 – Statement of Cash Flows
56. Excerpts from Raimo Corporation’s comparative balance sheet appear below:
Which of the following is the correct treatment within the operating activities section of the
statement of cash flows using the indirect method?
Chapter 14 – Statement of Cash Flows
57. Schleich Corporation’s most recent balance sheet appears below:
Net income for the year was $274. Cash dividends were $53. The company did not sell or
retire any property, plant, and equipment during the year. The net cash provided by (used in)
operating activities for the year was:
Chapter 14 – Statement of Cash Flows
Chapter 14 – Statement of Cash Flows
58. Gayles Corporation’s most recent balance sheet appears below:
The net income for the year was $144. Cash dividends were $31. The company did not issue
any bonds or repurchase any of its common stock during the year. The net cash provided by
(used in) financing activities for the year was:
Chapter 14 – Statement of Cash Flows
59. Lemar Corporation’s net cash provided by operating activities was $70; its income taxes
were $13; its capital expenditures were $67; and its cash dividends were $5. The company’s
free cash flow was:
60. Moren Corporation’s net cash provided by operating activities was $95; its net income was
$71; its capital expenditures were $70; and its cash dividends were $18. The company’s free
cash flow was:
Chapter 14 – Statement of Cash Flows
61. Boole Corporation’s net cash provided by operating activities was $112; its capital
expenditures were $76; and its cash dividends were $31. The company’s free cash flow was:
Chapter 14 – Statement of Cash Flows
14–48
Hocking Corporation’s comparative balance sheet appears below:
The company’s net income (loss) for the year was $10,000 and its cash dividends were
$1,000. It did not sell or retire any property, plant, and equipment during the year. The
company uses the indirect method to determine the net cash provided by operating activities.
Chapter 14 – Statement of Cash Flows
62. Which of the following is correct regarding the operating activities section of the
statement of cash flows?
Chapter 14 – Statement of Cash Flows
63. Which of the following is correct regarding the operating activities section of the
statement of cash flows?
Chapter 14 – Statement of Cash Flows
64. Which of the following is correct regarding the operating activities section of the
statement of cash flows?
Chapter 14 – Statement of Cash Flows
65. The company’s net cash provided by operating activities is:
Chapter 14 – Statement of Cash Flows
66. The company’s net cash used in investing activities is:
Chapter 14 – Statement of Cash Flows
67. Based solely on the information above, the net cash provided by (used in) financing
activities on the statement of cash flows would be:
68. Based solely on the information above, the net cash provided by (used in) investing
activities on the statement of cash flows would be:
Chapter 14 – Statement of Cash Flows
14–55
Colosi Corporation’s comparative balance sheet appears below:
The company’s net income (loss) for the year was $3,000 and its cash dividends were $1,000.
It did not sell or retire any property, plant, and equipment during the year.
Chapter 14 – Statement of Cash Flows
69. The company’s net cash provided by operating activities is:
Chapter 14 – Statement of Cash Flows
14–57
70. The company’s net cash used in investing activities is:
Spade Company recorded the following events last year:
On the statement of cash flows, some of these events are classified as operating activities,
some are classified as investing activities, and some are classified as financing activities.
Chapter 14 – Statement of Cash Flows
71. Based solely on the information above, the net cash provided by (used in) financing
activities on the statement of cash flows would be:
72. Based solely on the information above, the net cash provided by (used in) investing
activities on the statement of cash flows would be:
Chapter 14 – Statement of Cash Flows
14–59
Megna Company’s net income last year was $143,000. Changes in the company’s balance
sheet accounts for the year appear below:
The company paid a cash dividend and it did not dispose of any long-term investments or
property, plant, and equipment. The company did not issue any bonds payable or repurchase
any of its own common stock. The following questions pertain to the company’s statement of
cash flows.
Chapter 14 – Statement of Cash Flows
73. The net cash provided by (used in) operating activities last year was: