Chapter 14 Appendix A The Direct Method of Determining the Net Cash Provided by Operating Activities
22. Under the direct method, the sales adjusted to a cash basis would be:
23. Under the direct method, the cost of goods sold adjusted to a cash basis would be:
Chapter 14 Appendix A The Direct Method of Determining the Net Cash Provided by Operating Activities
24. The net cash provided (used) by financing activities would be:
Chapter 14 Appendix A The Direct Method of Determining the Net Cash Provided by Operating Activities
25. The net cash provided (used) by operating activities would be:
Chapter 14 Appendix A The Direct Method of Determining the Net Cash Provided by Operating Activities
26. The net cash provided (used) by investing activities would be:
Chapter 14 Appendix A The Direct Method of Determining the Net Cash Provided by Operating Activities
14A–25
Kelln Corporation’s most recent comparative balance sheet and income statement appear
below:
The company paid a cash dividend and it did not dispose of any 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 Appendix A The Direct Method of Determining the Net Cash Provided by Operating Activities
27. The net cash provided by (used in) operating activities for the year was:
Chapter 14 Appendix A The Direct Method of Determining the Net Cash Provided by Operating Activities
28. The net cash provided by (used in) investing activities for the year was:
29. The net cash provided by (used in) financing activities for the year was:
Chapter 14 Appendix A The Direct Method of Determining the Net Cash Provided by Operating Activities
14A–28
Fluck Corporation’s balance sheet and income statement appear below:
The company sold equipment for $12 that was originally purchased for $5 and that had
accumulated depreciation of $3. The company paid a cash dividend and it did not issue any
bonds payable or repurchase any of its own common stock.
Chapter 14 Appendix A The Direct Method of Determining the Net Cash Provided by Operating Activities
30. The net cash provided by (used in) operating activities for the year was:
Chapter 14 Appendix A The Direct Method of Determining the Net Cash Provided by Operating Activities
31. The net cash provided by (used in) investing activities for the year was:
32. The net cash provided by (used in) financing activities for the year was:
Chapter 14 Appendix A The Direct Method of Determining the Net Cash Provided by Operating Activities
Last year, Nye Company reported on its income statement sales of $475,000 and cost of
goods sold of $240,000. During the year, the balance in accounts receivable increased
$40,000, the balance in accounts payable decreased $25,000, and the balance in inventory
increased $10,000. The company uses the direct method to determine the net cash provided by
operating activities on its statement of cash flows.
33. Under the direct method, sales adjusted to a cash basis would be:
Chapter 14 Appendix A The Direct Method of Determining the Net Cash Provided by Operating Activities
34. Under the direct method, cost of goods sold adjusted to a cash basis would be:
Chapter 14 Appendix A The Direct Method of Determining the Net Cash Provided by Operating Activities
14A–33
Van Aalst Company’s comparative balance sheet and income statement for last year appear
below:
The company declared and paid $77,000 in cash dividends during the year. It did not sell or
retire any property, plant, and equipment during the year. The company uses the direct
method to determine the net cash provided by operating activities.
Chapter 14 Appendix A The Direct Method of Determining the Net Cash Provided by Operating Activities
35. On the statement of cash flows, the sales revenue adjusted to a cash basis would be:
36. On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be:
Chapter 14 Appendix A The Direct Method of Determining the Net Cash Provided by Operating Activities
37. On the statement of cash flows, the selling and administrative expense adjusted to a cash
basis would be:
38. On the statement of cash flows, the income tax expense adjusted to a cash basis would be:
Chapter 14 Appendix A The Direct Method of Determining the Net Cash Provided by Operating Activities
14A–36
The most recent balance sheet and income statement of Marroquin Corporation appear
below:
The company paid a cash dividend and it did not dispose of any 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 Appendix A The Direct Method of Determining the Net Cash Provided by Operating Activities
39. The net cash provided by (used in) operating activities for the year was: