acc. 2 ch. 16 CNOW

A corporation uses the indirect method of preparing the statement of cash flows. A fixed asset has been sold for $25,000, representing a gain of $4,500. The value of this transaction appearing in the operating activities section of the statement of cash flows is

$(4,500)

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

cash flows from contingent activities

Which of the following can be found on the statement of cash flows?

cash flows from operating activities

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

cash received from the sale of investments

The statement of cash flows is not useful for

computing the net worth of a company

The beginning and ending balances of Accounts Receivable for the year are $40,000 and $32,000, respectively. Income reported on the income statement for the year is $110,000. Exclusive of the effect of other adjustments, the net cash flows from operating activities to be reported on the statement of cash flows using the indirect method is

$118,000

Which of the following increases cash?

borrowing money by issuing a 6-month note

The net income reported on the income statement for the current year was $250,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000, and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: What is the amount of net cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

$271,000

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

financing activities

Preferred stock issued in exchange for land would be reported on the statement of cash flows in

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

On the statement of cash flows prepared using the indirect method, a $7,500 gain on the sale of fixed assets would be

deducted from net income in converting the net income reported on the income statement to cash flows from operating activities

Which of the following does not represent an outflow of cash and therefore would not be reported on the statement of cash flows as a use of cash?

discarding an asset that had been fully depreciated

Which of the following is a noncash investing and financing activity?

issuance of common stock to acquire land

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

Which of the following is not one of the four basic financial statements?

statement of changes in financial position

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

Depreciation on factory equipment would be reported on the statement of cash flows prepared by the indirect method in

the Cash Flows from (used for) Operating Activities section

Which of the following should be shown on a statement of cash flows under the financing activities section?

the payment of cash to retire a long-term note