Question

1- When preparing a statement of cash flows using the indirect method, each of the following...

1- When preparing a statement of cash flows using the indirect method, each of the following should be classified as an operating cash flow except:

Multiple Choice

An increase in accounts receivable.

A decrease in accounts payable.

Proceeds from the disposal of a long-term asset with no gain or loss.

An increase in prepaid expenses.

A decrease in accrued expenses payable.

2- Marshland Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

Cash dividends declared for the year $ 40,000
Cash dividends payable at the beginning of the year 17,000
Cash dividends payable at the end of the year 13,000


The amount of cash paid for dividends was:

Multiple Choice

$44,000.

$40,000.

$57,000.

$53,000.

$36,000.

3- Noncash investing and financing activities may be disclosed in:

Multiple Choice

A note in the financial statements or a schedule attached to the statement of cash flows.

The operating activities section of the statement of cash flows.

The investing activities section of the statement of cash flows.

The financing activities section of the statement of cash flows.

The reconciliation of cash balance section.

4- In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:

Net income for the year was $ 52,000
Accounts payable increased by 18,000
Accounts receivable decreased by 25,000
Inventories increased by 5,000
Depreciation expense was 30,000

Net cash provided by operating activities was:

Multiple Choice

$120,000.

$60,000.

$70,000.

$80,000.

$130,000.

5- Investing activities do not include the:

Multiple Choice

Purchase of plant assets.

Lending and collecting on notes receivable.

Issuance of common stock.

Sale of plant assets.

Sale of short-term investments other than cash equivalents.

Homework Answers

Answer #1

Answers:

1) Proceeds from the disposal of a long-term asset with no gain or loss.

2) $44,000

Cash paid for dividends = cash dividend declared + cash dividend payable at the beginning of the year - Cash dividend              payable at the end of year

Cash paid for dividends = $40,000 + $17,000 - $13,000 = $44,000

3) A note in the financial statements or a schedule attached to the statement of cash flows.

4) $120,000

5) Issuance of common stock

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In preparing a company's statement of cash flows for the most recent year using the indirect...
In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was $ 62,000 Accounts payable increased by 28,000 Accounts receivable decreased by 45,000 Inventories decreased by 15,000 Cash dividends paid were 24,000 Depreciation expense was 40,000 Net cash provided by operating activities was: Multiple Choice $44,000. $91,000. $90,000. $160,000. $190,000.
In preparing a company's statement of cash flows for the most recent year using the indirect...
In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was $ 68,000 Accounts payable decreased by 25,000 Accounts receivable increased by 33,000 Inventories increased by 13,000 Depreciation expense was 46,000 Net cash provided by operating activities was: Multiple Choice $67,000. $68,000. $43,000. $93,000. $119,000.
MC Qu. 132 In preparing a company's... In preparing a company's statement of cash flows for...
MC Qu. 132 In preparing a company's... In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was $ 70,000 Accounts payable increased by 36,000 Accounts receivable decreased by 61,000 Inventories decreased by 23,000 Cash dividends paid were 32,000 Depreciation expense was 56,000 Net cash provided by operating activities was: Multiple Choice $246,000. $106,000. $60,000. $200,000. $107,000. MC Qu. 133 In preparing a...
If a company is using the indirect method to prepare the statement of cash flows, identify...
If a company is using the indirect method to prepare the statement of cash flows, identify where an increase in the accounts receivable account should be reported: Multiple Choice An increase in cash flows from operating activities An increase in cash flows from investing activities A decrease in cash flows from operating activities A decrease in cash flows from investing activities An increase in cash flows from financing activities
In preparing a company's statement of cash flows for the most recent year using the indirect...
In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was $ 88,000 Accounts payable decreased by 36,000 Accounts receivable increased by 43,000 Inventories increased by 23,000 Depreciation expense was 66,000 Net cash provided by operating activities was:
The accountant for TI Company is preparing the company's statement of cash flows for the fiscal...
The accountant for TI 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 151,000 Cash dividends declared for the year 46,000 Net income for the year 92,000 16) What is the ending balance for retained earnings? A. 264,000 B. 13,000 C. 243,000 D. 197,000 E. 105,000 17) Noncash investing and financing activities may be disclosed in A. A notes in...
1) On an indirect method statement of cash​ flows, a decrease in inventory would​ be: A.reflected...
1) On an indirect method statement of cash​ flows, a decrease in inventory would​ be: A.reflected in the investing activities section B.deducted from net income C.netted against any decreases in accounts payable D.added to net income 2) Sometimes income and cash flow follow different patterns. True False 3)Cash means more than just cash on hand and cash in the bank. Highly​ liquid, shortminus−term investments that are easily convertible into cash are​ called: A.cash equivalents B.accounts receivable C.promissory notes D.common shares...
True or False 1. The approach to preparing the cash flow statement relies on the following...
True or False 1. The approach to preparing the cash flow statement relies on the following rearrangement of the balance sheet equation: Change in cash = Change in (Liabilities + Stockholders' Equity + Noncash Assets). 2. Major investing and financing activities that do not involve cash do not have to be reported as part of the statement of cash flows. 3. In the decline phase, the company continues to enjoy positive operating cash flows but stops spending cash on investing...
The Garfield Ltd company uses the indirect method for preparing its statement of cash flows. It...
The Garfield Ltd company uses the indirect method for preparing its statement of cash flows. It reported a net income of $100,000 for the year 2016. During the year 2016, the working capital accounts were changed as follows: Increase in accounts receivable: $22,000 Increase in accounts payable: $18,600 Increase in inventory: $14,800 Decrease in non-trade notes payable: $30,000 Increase in available for sale securities: $32,000 The depreciation expense was $34,000 for the year 2016. Required: Compute net cash provided (used)...
Question text Statement of Cash Flows (Indirect Method) Use the following information regarding the Hamilton Corporation...
Question text Statement of Cash Flows (Indirect Method) Use the following information regarding the Hamilton Corporation to prepare a statement of cash flows using the indirect method: Accounts payable decrease $3,000 Accounts receivable increase 10,000 Wages payable decrease 9,000 Amortization expense 19,000 Cash balance, January 1 31,000 Cash balance, December 31 2,000 Cash paid as dividends 6,000 Cash paid to purchase land 110,000 Cash paid to retire bonds payable at par 65,000 Cash received from issuance of common stock 45,000...