acct301 ch23

Coronado Industries had net income for 2021 of $2920000. Additional information is as follows: Depreciation of plant assets$1196000Amortization of intangibles236000Increase in accounts receivable421000Increase in accounts payable545000 Coronado's net cash provided by operating activities for 2021 was $4476000. $4228000. $2596000. $4352000.

$4476000.

The balance in retained earnings at December 31, 2020 was $1437000 and at December 31, 2021 was $1163000. Net income for 2021 was $1072000. A stock dividend was declared and distributed which increased common stock $502000 and paid-in capital $123000. A cash dividend was declared and paid.The amount of the cash dividend was $465000. $1346000. $721000. $844000

$721000.

The first step in the preparation of the statement of cash flows requires the use of information included in which comparative financial statements? Balance sheets Income statements Statements of retained earnings Statements of cash flows

Balance sheets

Which of the following transactions should be classified as investing activities on an entity's statement of cash flows? Issuance of common stock to the shareholders Increase in accounts receivable Payment of cash dividend to the shareholders Sale of property, plant, and equipment

Sale of property, plant, and equipment

Under the direct method of preparing the statement of cash flows, cash receipts from customers is equal to: Net sales revenue. Sales revenues + Increase in accounts receivable. Sales revenues - Decrease in accounts receivable. Sales revenues - Increase in accounts receivable.

Sales revenues - Increase in accounts receivable.

Equipment which cost $437000 and had accumulated depreciation of $244000 was sold for $215000. This transaction should be shown on the statement of cash flows (indirect method) as a(n) addition to net income of $22000 and a $215000 cash inflow from financing activities. addition to net income of $22000 and a $193000 cash inflow from financing activities. deduction from net income of $22000 and a $215000 cash inflow from investing activities. deduction from net income of $22000 and a $193000 cash inflow from investing activities.

deduction from net income of $22000 and a $215000 cash inflow from investing activities.

The information to prepare the statement of cash flows comes from all of the following sources except: selected transaction data. comparative balance sheets. current income statement. retained earnings statement.

retained earnings statement.

Which method adjusts net income to net cash flows from operating activities? Indirect. Accrual. Adjustment. Direct.

Indirect.

Xanthe Corporation had the following transactions occur in the current year:1. Cash sale of merchandise inventory.2. Sale of delivery truck at book value.3. Sale of Xanthe common stock for cash.4. Issuance of a note payable to a bank for cash.5. Sale of a security held as an available-for-sale investment.6. Collection of loan receivable.How many of the above items will appear as a cash inflow from investing activities on a statement of cash flows for the current year? Four items Two items Five items Three items

Three items

Net cash flow from operating activities for 2021 for Bonita Industries was $456000.The following items are reported on the financial statements for 2021: Cash dividends paid on common stock$19600Depreciation and amortization13000Increase in accounts receivables23200 Based on the information above, Bonita's net income for 2021 was $452400. $419800. $466200. $413200.

$466200.

During 2021, Marigold Corp. earned net income of $496000 which included depreciation expense of $78500. In addition, the company experienced the following changes in the account balances listed below: IncreasesDecreasesAccounts payable$45100Accounts receivable$12700Inventory35800Accrued liabilities23200Prepaid insurance33900 Based upon this information what amount will be shown for net cash provided by operating activities for 2021? $576900 $397000 $379200 $607200

$607200

All of the following would be classified as financing cash flows except: interest paid on long-term debt. dividends paid on preferred stock. purchases of treasury stock. proceeds from the sale of stock.

interest paid on long-term debt.

Which of the following activities would be classified as an investing activity? Cash received from interest revenue. Cash paid to purchase land to be held for future use. Cash received for dividends. Cash paid on account.

Cash paid to purchase land to be held for future use.

If a plant asset is sold for cash and a loss results, which sections are affected in the statement of cash flows under the indirect method? Investing only. Operating and financing. Financing only. Operating and investing.

Operating and investing.

Which of the following would be classified as a financing activity on a statement of cash flows? Declaration and distribution of a stock dividend Payment of interest to a creditor Payment of a bond payable Sale of a loan receivable

Payment of a bond payable

The amortization of bond premium on long-term debt should be presented in a statement of cash flows (using the indirect method for operating activities) as a(n) investing activity. addition to net income. financing activity. deduction from net income.

deduction from net income.