Question 1

When listing accounts in the statement of cash flows worksheet, the accumulated depreciation account is shown

Accepted Answer

Accumulated depreciation is a contra asset account, which means it has a credit balance. Therefore, it should be listed with accounts that have credit balances in the statement of cash flows worksheet.

Question 2

Largo Company has other operating expenses of $75,000.There has been a decrease in prepaid expenses of $4,000 during the year, and accrued liabilities are $6,000 larger than in the prior period.What were Largo's cash payments for operating expenses?

Accepted Answer

The answer of Largo Company has other operating expenses of...

Question 3

Which of the following items does not appear in the statement of cash flows under the direct method?

Accepted Answer

Depreciation expense does not appear in the statement of cash flows under the direct method because it is a non-cash expense. The direct method only includes cash transactions, such as cash payments and cash receipts from operating activities.

Question 4

Dobson Corporation shows income tax expense of $80,000.There has been a $5,000 decrease in federal income taxes payable and a $7,000 increase in local income taxes payable during the year.What was Dobson's cash payment for income taxes?

Accepted Answer

Cash payment for income taxes = Income tax expense + Decrease in federal income taxes payable - Increase in local income taxes payable= $80,000 + $5,000 - $7,000= $78,000

Question 5

Utley Company had a cost of purchases of $250,000.The comparative statement of financial posititon analysis revealed a $10,000 decrease in inventory and a $20,000 increase in accounts payable.What were Utley's cash payments to suppliers?

Accepted Answer

Cost of purchases = $250,000Decrease in inventory = $10,000Increase in accounts payable = $20,000Cash payments to suppliers = Cost of purchases + Decrease in inventory - Increase in accounts payable= $250,000 + $10,000 - $20,000= $240,000

Question 6

Haden Inc.had cash sales of $300,000 and credit sales of $1,050,000.The accounts receivable balance increased $15,000 during the year.How much cash did Haden receive from its customers during the year?

Accepted Answer

The answer of Haden Inc.had cash sales of $300,000 and...

Question 7

Tatum Company had an increase in inventory of $40,000.The cost of goods sold was $90,000.There was a $5,000 decrease in accounts payable from the prior period.What were Tatum's cash payments to suppliers?

Accepted Answer

The increase in inventory and the decrease in accounts payable both represent an increase in cash payments to suppliers. Therefore, the cash payments to suppliers are $40,000 + $5,000 = $45,000. Adding this to the cost of goods sold of $90,000 gives a total of $135,000.

Question 8

Gary Company reports a $15,000 increase in inventory and a $5,000 increase in accounts payable during the year.Cost of Goods Sold for the year was $160,000.The cash payments made to suppliers were

Accepted Answer

The answer of Gary Company reports a $15,000 increase in...

Question 9

In the bottom portion of the statement of cash flows worksheet,

Accepted Answer

The answer of In the bottom portion of the statement...

Question 10

Which of the following would not appear in the operating activities section of a statement of cash flows prepared under the direct method?

Accepted Answer

The gain on sale of equipment would be reported in the investing activities section, not in the operating activities section. The other options - cash receipts from customers, cash paid for income taxes, and cash paid to employees - are all transactions that would typically be included in the operating activities section.

Question 11

Rader Company had credit sales of $550,000.The beginning accounts receivable balance was $40,000 and the ending accounts receivable balance was $140,000.What were the cash collections from customers during the period?

Accepted Answer

The cash collections from customers can be calculated by adding the beginning accounts receivable balance to the credit sales and then subtracting the ending accounts receivable balance. Therefore, cash collections = beginning accounts receivable balance + credit sales - ending accounts receivable balance = $40,000 + $550,000 - $140,000 = $450,000.

Question 12

Which of the following statements concerning the statement of cash flows is true?

Accepted Answer

The direct method requires a supplementary schedule reconciling net income to net cash from operating activities as it does not provide this reconciliation directly on the statement of cash flows. The indirect method is generally considered more accurate as it reconciles net income to net cash from operating activities by adjusting for items such as non-cash expenses and changes in working capital. The statement of cash flows does not reflect earnings per share or cash per share and is a required financial statement for external reporting purposes.

Question 13

During the year, Salaries Payable decreased by $¥ 60,000$. If Salary Expense amounted to $\neq 1700,000$ for the year, the cash paid to employees (including deductions from gross pay) is

Accepted Answer

The cash paid to employees is calculated by adding the decrease in Salaries Payable to the Salary Expense: $¥ 1,700,000 + ¥ 60,000 = ¥ 1,760,000$.

Question 14

Carter Company reports the following: $$\begin{array} { l c c } 
& \text { End of Year } & \text { Beginning of Year } \
\text { Inventory } & \$ 25,000 &\$40,000 \
\text { Accounts Payable } & 30,000 & 10,000
\end{array}$$ If cost of goods sold for the year is $210,000, the amount of cash paid to suppliers is

Accepted Answer

The answer of Carter Company reports the following: \[\begin{array} {...

Question 15

In the Roswell Corporation, cash receipts from customers were $138,000, cash payments for operating expenses were $102,000, and one-third of the company's $6,300 income taxes were paid during the year.Net cash provided by operating activities is:

Accepted Answer

Net cash provided by operating activities can be calculated by using the indirect method of the statement of cash flows. 
Starting with net income of $6,300, we would add back non-cash expenses like depreciation and amortization, and then adjust for changes in current assets and liabilities. 
Based on the information provided, we know that cash receipts were $138,000 and cash payments for expenses were $102,000. We also know that one-third of income taxes were paid, which would be $2,100 ($6,300/3). 
Using these figures, we can calculate the net cash provided by operating activities as follows:

Net income: $6,300 
Depreciation and amortization: N/A 
Changes in current assets and liabilities: 
+ Increase in accounts receivable (customers owe us money): N/A 
- Increase in accounts payable (we owe money to vendors): N/A 
- Increase in accrued expenses (we owe money for expenses we haven't paid yet): N/A 
+ Increase in deferred income taxes (taxes we won't pay until next year): $4,200 ($6,300/3) 
Net cash provided by operating activities: $138,000 - $102,000 + $4,200 = $33,900

Question 16

On the statement of cash flows worksheet,

Accepted Answer

The answer of On the statement of cash flows worksheet,
...

Question 17

Each of the following would be reported under operating activities except cash receipts

Accepted Answer

Cash receipts from sales of investments would be reported under investing activities, not operating activities. The other options would be reported under operating activities.

Quiz 13: Statement of Cash Flows

When listing accounts in the statement of cash flows worksheet, the accumulated depreciation account is shown

Largo Company has other operating expenses of $75,000.There has been a decrease in prepaid expenses of $4,000 during the year, and accrued liabilities are $6,000 larger than in the prior period.What were Largo's cash payments for operating expenses?

Which of the following items does not appear in the statement of cash flows under the direct method?

Dobson Corporation shows income tax expense of $80,000.There has been a $5,000 decrease in federal income taxes payable and a $7,000 increase in local income taxes payable during the year.What was Dobson's cash payment for income taxes?

Utley Company had a cost of purchases of $250,000.The comparative statement of financial posititon analysis revealed a $10,000 decrease in inventory and a $20,000 increase in accounts payable.What were Utley's cash payments to suppliers?

Haden Inc.had cash sales of $300,000 and credit sales of $1,050,000.The accounts receivable balance increased $15,000 during the year.How much cash did Haden receive from its customers during the year?

Tatum Company had an increase in inventory of $40,000.The cost of goods sold was $90,000.There was a $5,000 decrease in accounts payable from the prior period.What were Tatum's cash payments to suppliers?

Gary Company reports a $15,000 increase in inventory and a $5,000 increase in accounts payable during the year.Cost of Goods Sold for the year was $160,000.The cash payments made to suppliers were

In the bottom portion of the statement of cash flows worksheet,

Which of the following would not appear in the operating activities section of a statement of cash flows prepared under the direct method?

Rader Company had credit sales of $550,000.The beginning accounts receivable balance was $40,000 and the ending accounts receivable balance was $140,000.What were the cash collections from customers during the period?

Which of the following statements concerning the statement of cash flows is true?

During the year, Salaries Payable decreased by $¥ 60,000$ . If Salary Expense amounted to $\neq 1700,000$ for the year, the cash paid to employees (including deductions from gross pay) is

In the Roswell Corporation, cash receipts from customers were $138,000, cash payments for operating expenses were $102,000, and one-third of the company's $6,300 income taxes were paid during the year.Net cash provided by operating activities is:

On the statement of cash flows worksheet,

Each of the following would be reported under operating activities except cash receipts

Quiz 13: Statement of Cash Flows

When listing accounts in the statement of cash flows worksheet, the accumulated depreciation account is shown

Largo Company has other operating expenses of $75,000.There has been a decrease in prepaid expenses of $4,000 during the year, and accrued liabilities are $6,000 larger than in the prior period.What were Largo's cash payments for operating expenses?

Which of the following items does not appear in the statement of cash flows under the direct method?

Dobson Corporation shows income tax expense of $80,000.There has been a $5,000 decrease in federal income taxes payable and a $7,000 increase in local income taxes payable during the year.What was Dobson's cash payment for income taxes?

Utley Company had a cost of purchases of $250,000.The comparative statement of financial posititon analysis revealed a $10,000 decrease in inventory and a $20,000 increase in accounts payable.What were Utley's cash payments to suppliers?

Haden Inc.had cash sales of $300,000 and credit sales of $1,050,000.The accounts receivable balance increased $15,000 during the year.How much cash did Haden receive from its customers during the year?

Tatum Company had an increase in inventory of $40,000.The cost of goods sold was $90,000.There was a $5,000 decrease in accounts payable from the prior period.What were Tatum's cash payments to suppliers?

Gary Company reports a $15,000 increase in inventory and a $5,000 increase in accounts payable during the year.Cost of Goods Sold for the year was $160,000.The cash payments made to suppliers were

In the bottom portion of the statement of cash flows worksheet,

Which of the following would not appear in the operating activities section of a statement of cash flows prepared under the direct method?

Rader Company had credit sales of $550,000.The beginning accounts receivable balance was $40,000 and the ending accounts receivable balance was $140,000.What were the cash collections from customers during the period?

Which of the following statements concerning the statement of cash flows is true?

During the year, Salaries Payable decreased by ¥60,000¥ 60,000¥60,000 . If Salary Expense amounted to ≠1700,000\neq 1700,000=1700,000 for the year, the cash paid to employees (including deductions from gross pay) is

In the Roswell Corporation, cash receipts from customers were $138,000, cash payments for operating expenses were $102,000, and one-third of the company's $6,300 income taxes were paid during the year.Net cash provided by operating activities is:

On the statement of cash flows worksheet,

Each of the following would be reported under operating activities except cash receipts

During the year, Salaries Payable decreased by $¥ 60,000$ . If Salary Expense amounted to $\neq 1700,000$ for the year, the cash paid to employees (including deductions from gross pay) is