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Exam 13: Statement of Cash Flows

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Question 91

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How is it possible for a company to suffer a net loss for a given year, yet produce a positive net cash flow from operating activities?

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A net loss means that accrual-based expe...

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Question 92

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Banner Company had total operating expenses of €180,000 in 2014, which included Depreciation Expense of €25,000. Also, during 2014, prepaid expenses increased by €5,000 and accrued expenses decreased by €6,700. Instructions Calculate the amount of cash payments for operating expenses in 2014 using the direct method.

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Question 93

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Classify each of the following as a(n):

Using the indirect method, patent amortization expense for the period

To determine the net cash provided (used) by operating activities, it is necessary to analyze

Land acquired from the issuance of ordinary shares is reported

Neal Company reported net income of $160,000. For 2014, depreciation was $40,000, and the company reported a gain on disposal of investments of $10,000. Accounts receivable increased $25,000 and accounts payable decreased $20,000. Instructions Compute net cash provided by operating activities using the indirect method.

The operating activities section of the statement of cash flows may be prepared using the ______________ method or the ______________ method.

Investing activities include

If $350,000 of bonds are issued during the year but $140,000 of old bonds are retired during the year, the statement of cash flows will show a(n)

The net income reported on the income statement for the current year was ¥2,700,000. Depreciation was ¥500,000. Account receivable and inventories decreased by ¥100,000 and ¥300,000, respectively. Prepaid expenses and accounts payable increased, respectively, by ¥10,000 and ¥80,000. How much cash was provided by operating activities?

During 2014, Klugman Industries reported cash provided by operations of €890,000, cash used in investing of €1,029,000, and cash used in financing of €135,000. In addition, cash spent for fixed assets during the period was €414,000. No dividends were paid. Based on this information, what was Klugman's free cash flow?

On the statement of cash flows using the indirect method, patent amortization expense will

Net income from operations is generally not the same as cash provided from operations because revenues and expenses are recognized in the income statement on the ______________ basis.

Haden Inc. had cash sales of $300,000 and credit sales of $1,090,000. The accounts receivable balance increased $15,000 during the year. How much cash did Haden receive from its customers during the year?

Which of the following adjustments to convert net income to net cash provided by operating activities is incorrect?

The income statement of Falcone Company is shown below: Additional information: 1. Accounts receivable increased $300,000 during the year. 2. Inventory increased $250,000 during the year. 3. Prepaid expenses increased $200,000 during the year. 4. Accounts payable to merchandise suppliers increased $150,000 during the year. 5. Accrued expenses payable increased $160,000 during the year. Instructions Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2014, for Falcone Company, using the direct method.

All major financing and investing activities affect cash.

In the Green Company, the beginning and ending balances in Land were $264,000 and $320,000 respectively. During the year, land costing $60,000 was sold for $60,000 cash, and land costing $116,000 was purchased for cash. The entries in the reconciling columns of the worksheet will include a:

Significant non-cash transactions would not include