chapter 16 quiz

cash dividends of $85,153 were declared during the year. cash dividends payable were $9,440 at the beginning of the year and $15,461 at the end of the year. the amount of cash paid for dividends during the year is

$85,153

A building with a book value of $35,516 is sold for $56,216 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as an increase of

$56,216 from investing activities and a deduction from net income of $20,700

a company had net income of $204,031. depreciation expense was $21,988. during the year, accounts receivable and merchandise inventory increased by $15,696 and $27,403, respectively. prepaid expenses and accounts payable decreased by $1,181 and $6,640, respectively. there was also a loss on the sale of equipment of $5,300. how much was the net cash flows from operating activities on the statement of cash flows using the indirect method?

$172,161

which of the following should be deducted from net income in computing net cash flows from operating activities using the indirect method?

decrease in accounts payable

cash paid for preferred stock dividends should be shown on the statements of cash flows under

financing activites

a 10-year bond was issued at face value for $250,000 cash. this transaction should be shown on a statement of cash flows under

financing activities

cash received from the issuance of a mortgage note payable would be classified as a(n)

financing activity

which of the following should be deducted from net income in computing the net cash flows from operating activities using the indirect method?

gain on sale of land

A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under

investing activities

which of the following represents an inflow of cash and therefore would be reported on the statement of cash flows?

issuance of long-term debt

Financing activities include

issuing debt

changes in current assets and current liabilities are reported on the statement of cash flows, using the indirect method, in the

operating activities section

the order of presentation of activities on the statement of cash flows is

operating, investing, financing

which of the following would not be classified as an operating activity?

payment of dividends

which of the following would not be found in a schedule of noncash investing and financing activities reported at the bottom of a statement of cash flows?

purchase of treasury stock for cash

on the statement of cash flows prepared by the indirect method, the operating activities section would include

receipts from the sale of investments

on the statement of cash flows, the financing activities section would include

receipts from the sale of investments

cash dividends paid on common stock would be reported on the statement of cash flows in

the cash flows from (used for) financing activities section

Cash paid for equipment would be reported on the statement of cash flows in

the cash flows from (used for) investing activities section

Cash paid to purchase long-term investments would be reported on the statement of cash flows in

the cash flows from (used for) investing activities section

baxter company reported a net loss of $15,033 for the year ended december 31. during the year, accounts receivable decreased by $4,557, merchandise inventory increased by $11,770, accounts payable increased by $8,216, and depreciation expense of $4,718 was recorded. during the year, operating activities under the indirect method

used net cash of $9,312

preferred stock issued in exchange for land would be reported on the statement of cash flow in

a separate section of noncash investing and financing activities, usually at the bottom of the statement

the last item on the statement of cash flows prior to the schedule of noncash investing and financing activities reports

cash at the end of the period

which of the following would not be on the statement of cash flows?

cash flows from contingent activities

on the statement of cash flows, the investing activities section would include

cash received from sale of investments