Question 1

Master Company's net income last year was $88,000 and cash dividends declared and paid to the company stockholders was $60,000.Changes in selected balance sheet accounts for the year appear below:  
 
-  The net cash flows from investing activities last year was

Accepted Answer

$(50,000) + $(35,000)

Question 2

Master Company's net income last year was $88,000 and cash dividends declared and paid to the company stockholders was $60,000.Changes in selected balance sheet accounts for the year appear below:  
 
-The net cash flows from operating activities last year was

Accepted Answer

$88,000 + $11,000 - $6,000 + $62,000 + $1,000 - $5,000 + $10,000

Question 3

The net income reported on the income statement for the current year was $79,000.Depreciation was $6,000.Account receivable and inventories decreased by $1,100 and $2,700, respectively.Prepaid expenses and accounts payable increased, respectively, by $950 and $3,000.How much cash was provided by operating activities?

Accepted Answer

$79,000 + $6,000 + $1,100 + $2,700 - $950 + $3,000

Question 4

The following transactions occurred last year at Berry Inc.last year:

Based solely on the above information, net cash flow from financing activities for the year on the statement of cash flows would be:

Accepted Answer

Net cash flow from financing activities = Issuance of common stock - Dividends paid to the common stockholders - Repayment of principal on the company's own bonds
= $170,000 - $9,000 - $65,000
= $96,000

Question 5

The following transactions occurred last year at Dempsey Inc. 
Based solely on the above information, the net cash flows from financing activities for the year on the statement of cash flows would be

Accepted Answer

$50,000 - $3,000 - $40,000

Question 6

Net income reported on the income statement for the current year was $350,000.Depreciation recorded on plant assets was $26,000.Accounts receivable and inventories increased by $3,000 and $5,000 respectively.Prepaid expenses and accounts payable decreased by $2,500 and $13,000 respectively.Using the indirect method, how much would be reported as net cash flow from operating activities on the statement of cash flows?

Accepted Answer

Net cash flow from operating activities = Net income + Depreciation expense - Increase in accounts receivable - Increase in inventories + Prepaid expenses
= $350,000 + $26,000 - $3,000 - $5,000 + $2,500 - $13,000
= $357,500

Question 7

Land costing $78,000 was sold for $93,000 cash.The gain on the sale was reported on the income statement as other income.On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

Accepted Answer

The amount reported as an investing activity on the statement of cash flows for the sale of land is the cash received from the sale, which is $93,000.

Question 8

Chandler Company's net income last year was $98,000 and cash dividends declared and paid to the company stockholders was $13,000.Changes in selected balance sheet accounts for the year appear below:

- The net cash flows from operating activities to be reported in a statement of cash flows is

Accepted Answer

$98,000 - $1,000 + $1,000 - $13,000 + $61,000 - $11,000 - $9,000 + $9,000

Question 9

The following transactions were made by Ruby Inc.last year:
 Based solely on the above information, net cash flow from financing activities for the year on the statement of cash flows would be:

Accepted Answer

Net cash flow from financing activities = Issuance of common stock - Dividends paid to the company's stockholders - Repayment of principal on bonds
= $100,000 - $2,000 - $40,000
= $58,000

Question 10

A company had net income of $230,000.Depreciation expense is $26,000.During the year accounts receivable and inventory increased $15,000 and $40,000, respectively.Prepaid expenses and accounts payable decreased $2,000 and $4,000, respectively.There was also a loss on the sale of equipment of $3,000.Using the indirect method, what is the amount of net cash flows from operating activities on the statement of cash flows?

Accepted Answer

$230,000 + $26,000 - $15,000- $40,000 + $2,000 - $4,000 + $3,000

Question 11

If a gain of $25,000 is incurred in selling (for cash) office equipment having a book value of $100,000, the total amount reported in the cash flows from the investing activities section of the statement of cash flows is

Accepted Answer

The total amount reported in the cash flows from the investing activities section of the statement of cash flows would be the cash received from the sale of office equipment, which is $125,000 ($100,000 book value + $25,000 gain).

Question 12

If a gain of $30,000 is incurred in selling (for cash) long-term investments having a book value of $180,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

Accepted Answer

The total amount reported in the cash flows from investing activities section would be $210,000, which is the sum of the gain ($30,000) and the book value of the investments sold ($180,000), reflecting the total cash received from the sale.

Question 13

If a loss of $12,500 is incurred in selling (for cash) office equipment having a book value of $50,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

Accepted Answer

The total amount reported in the cash flows from investing activities section would be $37,500, which is the cash received from the sale of the office equipment. This is calculated by subtracting the loss of $12,500 from the book value of $50,000.

Question 14

Net income reported on the income statement for the current year was $300,000.Depreciation recorded on plant assets was $40,000.Accounts receivable and inventories decreased by $8,000 and $7,500 respectively.Prepaid expenses and accounts payable increased by $200 and $3,000 respectively.Using the indirect method, how much would be reported as net cash flow from operating activities on the statement of cash flows?

Accepted Answer

Net cash flow from operating activities = Net income + Depreciation + Decrease in accounts receivables + Decrease in inventories - Increase in prepaid expenses + Increase in accounts payable = $300,000 + $40,000 + $8,000 + 7,500 - $200 + $3,000 = $358,300

Question 15

Chandler Company's net income last year was $98,000 and cash dividends declared and paid to the company stockholders was $13,000.Changes in selected balance sheet accounts for the year appear below:

- The net cash flows from investing activities to be reported in a statement of cash flows is

Accepted Answer

$70,000 + $45,000

Question 16

The net income reported on the income statement for the current year was $635,000.Depreciation recorded on plant assets was $29,000.Accounts receivable and inventories increased by $1,200 and $3,600, respectively.Prepaid expenses and accounts payable decreased by $800 and $16,000 respectively.How much cash was provided by operating activities?

Accepted Answer

$635,000 + $29,000 - $1,200 - $3,600 + $800 - $16,000

Question 17

If a loss of $9,200 is incurred in selling (for cash) a patent having a book value of $80,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

Accepted Answer

The total amount reported in the cash flows from investing activities section would be the cash received from the sale of the patent. Since a loss of $9,200 is incurred on a patent with a book value of $80,000, the cash received is $80,000 - $9,200 = $70,800.

Question 18

Master Company's net income last year was $88,000 and cash dividends declared and paid to the company stockholders was $60,000.Changes in selected balance sheet accounts for the year appear below:

- The net cash flows from financing activities last year was

Accepted Answer

$(60,000) + $40,000 + $(60,000)

Question 19

The Laurel Company reported the following data for last year: 
Based solely on this information, the net cash flows from financing activities on the statement of cash flows would be

Accepted Answer

$(25,000) = X + $20,000 + $15,000

Question 20

Chandler Company's net income last year was $98,000 and cash dividends declared and paid to the company stockholders was $13,000.Changes in selected balance sheet accounts for the year appear below:

- The net cash flows from financing activities to be reported in a statement of cash flows is

Accepted Answer

$(50,000) + $40,000 - $13,000

Quiz 14: Statement of Cash Flows

Master Company's net income last year was $88,000 and cash dividends declared and paid to the company stockholders was $60,000.Changes in selected balance sheet accounts for the year appear below: - The net cash flows from investing activities last year was

Master Company's net income last year was $88,000 and cash dividends declared and paid to the company stockholders was $60,000.Changes in selected balance sheet accounts for the year appear below: -The net cash flows from operating activities last year was

The following transactions occurred last year at Berry Inc.last year: Based solely on the above information, net cash flow from financing activities for the year on the statement of cash flows would be:

The following transactions occurred last year at Dempsey Inc. Based solely on the above information, the net cash flows from financing activities for the year on the statement of cash flows would be

Land costing $78,000 was sold for $93,000 cash.The gain on the sale was reported on the income statement as other income.On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

Chandler Company's net income last year was $98,000 and cash dividends declared and paid to the company stockholders was $13,000.Changes in selected balance sheet accounts for the year appear below: - The net cash flows from operating activities to be reported in a statement of cash flows is

The following transactions were made by Ruby Inc.last year: Based solely on the above information, net cash flow from financing activities for the year on the statement of cash flows would be:

If a gain of $25,000 is incurred in selling (for cash) office equipment having a book value of $100,000, the total amount reported in the cash flows from the investing activities section of the statement of cash flows is

If a gain of $30,000 is incurred in selling (for cash) long-term investments having a book value of $180,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

If a loss of $12,500 is incurred in selling (for cash) office equipment having a book value of $50,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

Chandler Company's net income last year was $98,000 and cash dividends declared and paid to the company stockholders was $13,000.Changes in selected balance sheet accounts for the year appear below: - The net cash flows from investing activities to be reported in a statement of cash flows is

If a loss of $9,200 is incurred in selling (for cash) a patent having a book value of $80,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

Master Company's net income last year was $88,000 and cash dividends declared and paid to the company stockholders was $60,000.Changes in selected balance sheet accounts for the year appear below: - The net cash flows from financing activities last year was

The Laurel Company reported the following data for last year: Based solely on this information, the net cash flows from financing activities on the statement of cash flows would be

Chandler Company's net income last year was $98,000 and cash dividends declared and paid to the company stockholders was $13,000.Changes in selected balance sheet accounts for the year appear below: - The net cash flows from financing activities to be reported in a statement of cash flows is