Chapter 12 Homework
preferred stock issued in exchange for land would be reported in the statement of cash flows in
a separate schedule or note to the financial statements
which is not generally used in preparing a statement of cash flows? current income statement comparative balance sheets adjusted trial balance additional information
adjusted trial balance
the category that is generally considered to be the best measure of a company's ability to continue as a going concern
cash flows from operating activities
issued bonds for $210,000 cash
cash inflow from financing activity
sold land costing $21,000 for $21,000 cash
cash inflow from investing activity
in calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is
deducted from net income
Starting with net income and adjusting it for items that affected reported net income but which did not affect cash is called the
indirect method
Purchase of equipment
investing activity
Sold a long-term investment with a cost of $15,000 for $15,000 cash.
investing activity
purchase of land
investing activity
sale of building
investing activity
sale of building at book value
investing activity
summarizes the operating, financing, and investing activities of an entity
statement of cash flows
declared and paid a $52,500 cash dividend
cash outflow from financing activity
purchased equipment for $189,000 cash
cash outflow from investing activity
which is an activity that would be classified as an investing activity? a. cash paid to reacquire capital stock b. cash received from dividend revenue c. cash received from interest revenue d. cash paid (loaned) to a borrower as a loan
cash paid (loaned) to a borrower as a loan
on the statement of cash flows, the cash flows from operating activities section would be affected by
cash receipts from sales activities
assume ecuyer company uses the indirect method to depict cash flows. Indicate where, if at all, stock issued for equipment would be classified on the statement of cash flows.
does not represent a cash flow
Issued $50,000 par value common stock for cash
financing activities
Assume that the Kaenzig Corporation uses the indirect method to depict cash flows. Indicate where, if at all, common stock issued for cash would be classified.
financing activities section
Assume that the Safferstein Corporation uses the indirect method to depict cash flows. Indicate where, if at all, long-term debt retired with cash would be reported on the statement of cash flows.
financing activities section
Assume that the Zahler Corporation uses the indirect method to depict cash flows. Indicate where, if at all, treasury stock purchased with cash would be classified on the statement of cash flows.
financing activities section
Declared and paid a cash dividend of $13,000
financing activity
issuance of capital stock
financing activity
payment of dividends
financing activity
redemption of bonds
financing activity
retirement of bonds
financing activity
the payment of a cash dividend is classified as
financing activity
cash flows from operating activities, as reported on the statement of cash flows under the indirect method, would include
net income
Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000
noncash investing and financing activities
Purchased a machine for $30,000, giving a long-term note in exchange.
noncash investing and financing activities
conversion of bonds into common stock
noncash investing and financing activities
exchange of land for patent
noncash investing and financing activities
issuance of bonds for land
noncash investing and financing activities
the acquisition of land by issuing common stock is a _____________ transaction that __________ reported in the body of the statement of cash flows
noncash; is not
Collected $16,000 from sale of goods
operating activities
Paid $18,000 to suppliers
operating activities
cash receipts from interest and dividends are classified as
operating activities
Assume that the Quinn Corporation uses the indirect method to depict cash flows. Indicate where, if at all, interest paid on a note would be reported on the statement of cash flows.
operating activities section
Assume that the Romanus Company uses the indirect method to depict cash flows. Indicate where, if at all, income taxes paid would be reported on the statement of cash flows.
operating activities section
assume the decker corporation uses the indirect method to depict cash flows. Indicate where, if at all, dividends received on securities held would be reported on the statement of cash flows.
operating activities section
amortization of patent
operating activity
cash received from sale of goods
operating activity
depreciation
operating activity
loss on disposal of plant assets
operating activity
The order of presentation of activities on the statement of cash flows is
operating, investing, and financing
if a company has both an inflow and outflow of cash related to property, plant, and equipment, that cash inflow and cash outflow must be ___________ in the investing activities section
reported separately
primary purpose of statement of cash flows
to provide information about a company's cash receipts and cash payments during a period
significant noncash transactions would not include a. asset acquisition through bond issuance b. treasury stock acquisition c. conversion of bonds into common stock d. exchange of plant assets
treasury stock acquisition