Question 1

Match the terms with the definitions.
-A financial statement associated with the operating, investing, and financing activities of a company.

Accepted Answer

The statement of cash flows is a financial statement that shows the operating, investing, and financing activities of a company, and how those activities have affected the company's cash balance. The other terms are components or methods used within the statement of cash flows.

Question 2

Match the terms with the definitions.
-Transactions and events associated with selling a product or providing a service. They are related to the revenues and expenses reported on the income statement.

Accepted Answer

Operating activities are the transactions and events related to selling a product or providing a service that affect revenues and expenses reported on the income statement.

Answer: H
 The statement of cash flows reports on the cash flows from operating, investing, and financing activities, as well as any noncash investing and financing activities.

Answer: F
 Noncash investing and financing activities are reported in the statement of cash flows, but they do not involve actual cash inflows or outflows.

Answer: E
 Investing activities involve the buying and selling of long-term assets, such as property, plant, and equipment or investments in securities.

Answer: C
 Financing activities involve transactions related to obtaining or repaying funds from lenders or investors, such as issuing stock, paying dividends, or taking out loans.

Answer: A
 Cash equivalents are short-term, highly liquid investments that can be easily converted to cash, such as money market funds or treasury bills.

Answer: B
 The direct method is a way of reporting cash flows from operating activities that shows the actual cash inflows and outflows related to specific operating activities. The indirect method starts with net income and adjusts for changes to noncash items to arrive at the cash flows from operating activities.

Question 3

(Appendix) The following activities took place at Austin Company during the most recent year. Indicate whether each activity is a cash inflow (+) or cash outflow (−) and whether it is an operating (O), investing (I), or financing (F) activity.

Accepted Answer

The answer of (Appendix) The following activities took place at...

Question 4

(Appendix) Magic Wand, Inc.'s sales for the calendar year 20-B amounted to $745,000. The Accounts Receivable balance as of December 31, 20-A was $67,000. This same account had a balance of $79,000 as of December 31, 20-B.​
Required:
Calculate the amount of cash received from customers in 20-B.

Accepted Answer

The answer of (Appendix) Magic Wand, Inc.'s sales for the...

Question 5

The following information was taken from the financial statements of Health and Racquet Company as of December 31, 20-B and 20-A.  ​
Required:
Compute cash flows from operating activities for 20-B.

Accepted Answer

The answer of The following information was taken from the...

Question 6

(Appendix) When preparing a schedule for the calculation of cash generated from operating activities under the direct method, a decrease in Accounts Receivable is

Accepted Answer

A decrease in Accounts Receivable indicates that cash has been collected from customers, so it is added to net sales to calculate cash receipts from customers.

Question 7

Match the terms with the definitions.
-Transactions dealing with the exchange of cash between the company and its owners (stockholders) and creditors.

Accepted Answer

Financing activities refer to transactions dealing with the exchange of cash between the company and its owners (stockholders) and creditors.

Question 8

(Appendix) Strathmore Company's cost of goods sold for the calendar year 20-B amounted to $412,000. The beginning and ending balances of Merchandise Inventory and Accounts Payable were as follows:  ​
Required:
Compute the amount of cash paid for merchandise in 20-B.

Accepted Answer

The answer of (Appendix) Strathmore Company's cost of goods sold...

Question 9

Match the terms with the definitions.
-A method of preparing the statement of cash flows in which the revenues and expenses reported on the income statement are adjusted to reflect the amount of cash received or paid for each item.

Accepted Answer

The direct method of preparing the statement of cash flows involves adjusting the revenues and expenses reported on the income statement to reflect the actual cash received or paid for each item.

Question 10

Prepare a statement of cash flow for the year ended December 31, 20-B.

Accepted Answer

The answer of Prepare a statement of cash flow for...

Question 11

Tree Top Company's comparative balance sheets as of December 31, 20-A and 20-B show the following with regard to investing and financing activities:  ​
Net income for the year 20-B was $98,000, and cash dividends of $25,000 were declared and paid. Determine the amount of cash received and paid for financing and investing activities and the cash flows as they would appear on Tree Top Company's statement of cash flows for the year ended December 31, 20-B.

Accepted Answer

The answer of Tree Top Company's comparative balance sheets as...

Question 12

The following information was taken from the financial statements of Cozy Corners Company as of December 31, 20-B and 20-A.  Required:
Compute cash flows from operating activities for 20-B.

Accepted Answer

The answer of The following information was taken from the...

Question 13

Match the terms with the definitions.
-Transactions involving the purchase and sale of long-term assets, investments in debt and equity securities, and lending money and collecting the principal on the related items.

Accepted Answer

Investing activities involve transactions involving the purchase and sale of long-term assets, investments in debt and equity securities, and lending money and collecting the principal on the related items.

Answer: C
 Financing activities involve transactions related to raising or paying for funds, such as issuing stock, paying dividends, and borrowing and repaying loans.

Answer: H
 The statement of cash flows is a financial statement that summarizes a company's cash transactions over a specific period of time, typically broken down into operating, investing, and financing activities.

Answer: F
 Noncash investing and financing activities refer to transactions that do not involve the actual exchange of cash, such as issuing stock for the acquisition of a company or exchanging debt for equity.

Answer: G
 Operating activities involve the company's core business operations, such as selling goods or services and collecting payments, and the resulting cash inflows and outflows.

Answer: B
 The direct method is a way of presenting the cash flows from operating activities that reports each individual cash inflow and outflow, while the indirect method starts with net income and adjusts for non-cash items to arrive at operating cash flows.

Answer: A
 Cash equivalents are highly liquid assets that can be easily converted into cash and are typically held as short-term investments, such as money market funds or treasury bills.

Question 14

(Appendix) The following activities took place at Amity Harbor Corporation during the past year. Indicate whether each activity is a cash inflow (+) or cash outflow (−), and whether it is an operating (O), investing (I), or financing (F) activity.

Accepted Answer

The answer of (Appendix) The following activities took place at...

Question 15

The income statement for Captree Landscaping is shown below. Assume that all revenues and expenses were for cash and that land was sold for $40,000. There were no other investing or financing activities during the year. The cash balances at the beginning and end of the year were $53,000 and $140,000. Prepare a statement of cash flows.

Accepted Answer

The answer of The income statement for Captree Landscaping is...

Question 16

(Appendix) Northern Lights Company's cost of goods sold for the calendar year 20-B amounted to $540,000. The beginning and ending balances of Merchandise Inventory and Accounts Payable were as follows:  ​
Required:
Compute the amount of cash paid for merchandise in 20-B.

Accepted Answer

The answer of (Appendix) Northern Lights Company's cost of goods...

Question 17

The income statement for Chin Consulting is shown below. Assume that all revenues and expenses were for cash and that land was sold for $48,000. There were no other investing or financing activities during the year. The cash balances at the beginning and end of the year were $63,000 and $142,000. Prepare a statement of cash flows.

Accepted Answer

The answer of The income statement for Chin Consulting is...

Question 18

(Appendix) The following information is from the 20-B and 20-A financial statements for Bay Village Paving Company.
Income statement data:  ​
Required:
Compute the amount of cash paid for operating expenses in 20-B.

Accepted Answer

The answer of (Appendix) The following information is from the...

Question 19

Match the terms with the definitions.
-Investing and financing activities that involve no cash flows, but represent a significant change in the company's financial position.

Accepted Answer

Noncash investing and financing activities involve actions that affect the company's financial position but do not result in any cash flows. Examples of such activities include issuing common stock in exchange for patents, converting debt into common stock, and acquiring assets by assuming long-term debt. The other answer choices relate to different aspects of the statement of cash flows, such as the direct and indirect methods of calculating cash flows from operating activities, the categories of cash flows (operating, investing, and financing activities), and the concept of cash equivalents.

Question 20

(Appendix) Pro Line Communication Company's sales for the calendar year 20-B amounted to $825,000. The Accounts Receivable balance as of December 31, 20-A was $77,000. This same account had a balance of $62,000 as of December 31, 20-B.​
Required:
Calculate the amount of cash received from customers in 20-B.

Accepted Answer

The answer of (Appendix) Pro Line Communication Company's sales for...

Quiz 23: Statement of Cash Flows

Match the terms with the definitions. -A financial statement associated with the operating, investing, and financing activities of a company.

Match the terms with the definitions. -Transactions and events associated with selling a product or providing a service. They are related to the revenues and expenses reported on the income statement.

(Appendix) The following activities took place at Austin Company during the most recent year. Indicate whether each activity is a cash inflow (+) or cash outflow (−) and whether it is an operating (O), investing (I), or financing (F) activity.

(Appendix) Magic Wand, Inc.'s sales for the calendar year 20-B amounted to $745,000. The Accounts Receivable balance as of December 31, 20-A was $67,000. This same account had a balance of $79,000 as of December 31, 20-B. Required: Calculate the amount of cash received from customers in 20-B.

The following information was taken from the financial statements of Health and Racquet Company as of December 31, 20-B and 20-A. Required: Compute cash flows from operating activities for 20-B.

(Appendix) When preparing a schedule for the calculation of cash generated from operating activities under the direct method, a decrease in Accounts Receivable is

Match the terms with the definitions. -Transactions dealing with the exchange of cash between the company and its owners (stockholders) and creditors.

(Appendix) Strathmore Company's cost of goods sold for the calendar year 20-B amounted to $412,000. The beginning and ending balances of Merchandise Inventory and Accounts Payable were as follows: Required: Compute the amount of cash paid for merchandise in 20-B.

Match the terms with the definitions. -A method of preparing the statement of cash flows in which the revenues and expenses reported on the income statement are adjusted to reflect the amount of cash received or paid for each item.

Prepare a statement of cash flow for the year ended December 31, 20-B.

The following information was taken from the financial statements of Cozy Corners Company as of December 31, 20-B and 20-A. Required: Compute cash flows from operating activities for 20-B.

Match the terms with the definitions. -Transactions involving the purchase and sale of long-term assets, investments in debt and equity securities, and lending money and collecting the principal on the related items.

(Appendix) The following activities took place at Amity Harbor Corporation during the past year. Indicate whether each activity is a cash inflow (+) or cash outflow (−), and whether it is an operating (O), investing (I), or financing (F) activity.

(Appendix) Northern Lights Company's cost of goods sold for the calendar year 20-B amounted to $540,000. The beginning and ending balances of Merchandise Inventory and Accounts Payable were as follows: Required: Compute the amount of cash paid for merchandise in 20-B.

(Appendix) The following information is from the 20-B and 20-A financial statements for Bay Village Paving Company. Income statement data: Required: Compute the amount of cash paid for operating expenses in 20-B.

Match the terms with the definitions. -Investing and financing activities that involve no cash flows, but represent a significant change in the company's financial position.

Quiz 23: Statement of Cash Flows

Match the terms with the definitions. -A financial statement associated with the operating, investing, and financing activities of a company.

Match the terms with the definitions. -Transactions and events associated with selling a product or providing a service. They are related to the revenues and expenses reported on the income statement.

(Appendix) The following activities took place at Austin Company during the most recent year. Indicate whether each activity is a cash inflow (+) or cash outflow (−) and whether it is an operating (O), investing (I), or financing (F) activity.

(Appendix) Magic Wand, Inc.'s sales for the calendar year 20-B amounted to $745,000. The Accounts Receivable balance as of December 31, 20-A was $67,000. This same account had a balance of $79,000 as of December 31, 20-B.​ Required: Calculate the amount of cash received from customers in 20-B.

The following information was taken from the financial statements of Health and Racquet Company as of December 31, 20-B and 20-A. ​ Required: Compute cash flows from operating activities for 20-B.

(Appendix) When preparing a schedule for the calculation of cash generated from operating activities under the direct method, a decrease in Accounts Receivable is

Match the terms with the definitions. -Transactions dealing with the exchange of cash between the company and its owners (stockholders) and creditors.

(Appendix) Strathmore Company's cost of goods sold for the calendar year 20-B amounted to $412,000. The beginning and ending balances of Merchandise Inventory and Accounts Payable were as follows: ​ Required: Compute the amount of cash paid for merchandise in 20-B.

Match the terms with the definitions. -A method of preparing the statement of cash flows in which the revenues and expenses reported on the income statement are adjusted to reflect the amount of cash received or paid for each item.

Prepare a statement of cash flow for the year ended December 31, 20-B.

The following information was taken from the financial statements of Cozy Corners Company as of December 31, 20-B and 20-A. Required: Compute cash flows from operating activities for 20-B.

Match the terms with the definitions. -Transactions involving the purchase and sale of long-term assets, investments in debt and equity securities, and lending money and collecting the principal on the related items.

(Appendix) The following activities took place at Amity Harbor Corporation during the past year. Indicate whether each activity is a cash inflow (+) or cash outflow (−), and whether it is an operating (O), investing (I), or financing (F) activity.

(Appendix) Northern Lights Company's cost of goods sold for the calendar year 20-B amounted to $540,000. The beginning and ending balances of Merchandise Inventory and Accounts Payable were as follows: ​ Required: Compute the amount of cash paid for merchandise in 20-B.

(Appendix) The following information is from the 20-B and 20-A financial statements for Bay Village Paving Company. Income statement data: ​ Required: Compute the amount of cash paid for operating expenses in 20-B.

Match the terms with the definitions. -Investing and financing activities that involve no cash flows, but represent a significant change in the company's financial position.

(Appendix) Magic Wand, Inc.'s sales for the calendar year 20-B amounted to $745,000. The Accounts Receivable balance as of December 31, 20-A was $67,000. This same account had a balance of $79,000 as of December 31, 20-B. Required: Calculate the amount of cash received from customers in 20-B.

The following information was taken from the financial statements of Health and Racquet Company as of December 31, 20-B and 20-A. Required: Compute cash flows from operating activities for 20-B.

(Appendix) Strathmore Company's cost of goods sold for the calendar year 20-B amounted to $412,000. The beginning and ending balances of Merchandise Inventory and Accounts Payable were as follows: Required: Compute the amount of cash paid for merchandise in 20-B.

(Appendix) Northern Lights Company's cost of goods sold for the calendar year 20-B amounted to $540,000. The beginning and ending balances of Merchandise Inventory and Accounts Payable were as follows: Required: Compute the amount of cash paid for merchandise in 20-B.

(Appendix) The following information is from the 20-B and 20-A financial statements for Bay Village Paving Company. Income statement data: Required: Compute the amount of cash paid for operating expenses in 20-B.