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Exam 16: Statement of Cash Flows

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Question 81

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The statement of cash flows is divided into three sections called the ___________, ___________, and _______________ sections.

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Question 82

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The accountant for Robinson Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: The amount of cash dividends paid during the year would be:

A) $70,000.
B) $46,000.
C) $22,000.
D) $39,000.
E) $24,000.

F) C) and D)
G) A) and E)

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Question 83

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An investment that is readily convertible to a known amount of cash and that is sufficiently close to its maturity date so that its market value is relatively insensitive to interest rate changes is a(n) :

Probably the most important section of the statement of cash flows in analyzing the financial performance of a company's ongoing business is the ____________ section.

A cash-based measure to help business decision makers estimate the amount and timing of cash flows is the cash flow on total assets ratio.

Woodlawn Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $233,000 Cash dividends declared for the year $50,000 Proceeds from the sale of equipment $85,000 Gain on the sale of equipment $4,500 Cash dividends payable at the beginning of the year $22,000 Cash dividends payable at the end of the year $30,000 Net income for the year $110,000 The ending balance in retained earnings is:

Based on the following income statement and balance sheet for Rashid Corporation, determine the cash flows from operating activities using the indirect method.

Equipment costing $100,000 with accumulated depreciation of $40,000 is sold at a loss of $10,000. This implies that $40,000 cash was received from the sale. Cost of asset $100,000 Accumulated depreciation 40,000 Carrying amount 60,000 Loss on sale (10,000) Cash received $ 50,000

The following selected account balances are taken from a merchandising company's records: (a) Calculate the cash payments made during 2011 for merchandise. Assume all of the company's accounts payable balances result from merchandise purchases. (b) Calculate the cash receipts from customer sales during 2011. (c) Calculate the cash payments for salaries during 2011.

What are the five usual steps involved in the preparation of the statement of cash flows?

The accountant for Robinson Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: What is the ending balance for retained earnings?

Typical cash flows from investing activities include:

Which one of the following is representative of typical cash flows from operating activities?

Investing activities include: (a) the purchase and sale of long-term assets, (b) lending and collecting on notes receivable, and (c) the purchase and sale of short-term investments in the securities of other entities, other than contracts held for dealing or trading purposes.

Which of the following transactions or events should be reported as a source of cash from operating activities when using the direct method?

Accounting standards:

A company had net cash flows from operations of $120,000, cash flows from financing of $330,000, total cash flows of $500,000, and average total assets of $2,500,000. The cash flow on total assets ratio equals:

Managers only use the statement of cash flows to evaluate the net cash increase or decrease, and do not pay much attention to the details of cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

Based on the information in the following income statement and balance sheet for Montego Bay Corporation, determine the cash flows from operating activities using the direct method.

A company's Inventory balance at 12/31/11 was $188,000 and $200,000 at 12/31/10. Its Accounts Payable balance at 12/31/11 was $84,000 and $80,000 at 12/31/10, and its cost of goods sold for 2011 was $720,000. The company's total amount of cash payments for merchandise in 2011 equals: