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Exam 24: The Statement of Cash Flows

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Question 21

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Transactions for the acquisition or disposal of long-term assets are:

A) investing activities.
B) operating activities.
C) financing activities.
D) outflows or uses of cash.

E) A) and D)
F) None of the above

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Question 22

Multiple Choice

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Information from Zurich Company's income statement is as follows: net income $15,600, depreciation expense $11,800; gain on sale of equipment $3,000; proceeds from the sale of land $22,000. The net cash provided by operating activities is:

A) $46,400.
B) $15,600.
C) $24,400.
D) $6,800.

E) C) and D)
F) B) and C)

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Question 23

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The starting point for analyzing cash flows from operating activities is the beginning balance of cash.

Investing activities include:

A list of sources and uses of cash are given below. Select on the line provided whether each is an operating, investing, or financing activity. -purchase of land

A list of sources and uses of cash are given below. Indicate on the line provided whether each is an (O) operating, (I) investing, (F) financing, or a significant (N) noncash financing and investing activity. -collected interest and dividends from actively traded investments

When the net cash provided by operating activities is determined, the amortization of bond premium:

For each of the following operating activities, select whether it is a source of cash, a use of cash or neither under the indirect method. -decrease in Supplies

For each of the following operating activities, select whether it is a source of cash, a use of cash, neither under the indirect method. -decrease in Taxes Payable

A list of sources and uses of cash are given below. Indicate on the line provided whether each is an (O)operating, (I)investing, (F)financing, or a significant (N)noncash financing and investing activity. -----(a) collected accounts receivable from customers -----(b) issued bonds payable -----(c) purchased equipment for cash -----(d) purchased land in exchange for a note payable -----(e) pay interest expense -----(f) declared dividend -----(g) paid advertising expenses -----(h) collected interest and dividends from actively traded investments -----(i) repaid a long-term note payable -----(j) gain on sale of land

Based only on the information provided, prepare the final three lines of Magalog Distributing's Statement of Cash Flows. Assume cash from financing and investing activities were zero during the period indicated. Comparative Balance Sheet December 31, 2019

An increase in Accounts Payable would be reported in the statement of cash flows as:

Cash flows from---------- activities are the result of routine business transactions such as buying and selling merchandise.

Define cash equivalents and list three examples other than coin, currency, and bank accounts.

A list of sources and uses of cash are given below. Select on the line provided whether each is an operating, investing, or financing activity. -pay salaries and wages

------------are transactions that involve the acquisition or disposal of assets that will not be used or consumed in routine operations.

Use the following information . The Kerfuffle Company Income Statement For the Year Ended June 30, 2019 General and Administrative Expenses Liabilities and Stockholders' Equity Additional information: Plant assets that originally cost $67,200 were sold for $56,400, resulting in a gain of $8,200. Dividends of $35,815 were declared and paid in 2019. There were no dividends declared in 2018. -Using the information provided, prepare the cash flows from investing activities for The Kerfuffle Company.

Operating activities are routine business transactions that include providing services, paying wages, borrowing funds, selling stock, and paying dividends.

A sale of used equipment for cash produces an inflow of cash from investing activities.

If a corporation issued stock for $85,000 in cash, received $35,000 in cash from the issuance of a long-term loan, and paid cash dividends totaling $24,000, the net cash provided by financing activities would be-------- .