Accounting final

A company reported that its bonds with a par value of $40,000 and a carrying value of $52,000 are retired for $60,000 cash, resulting in a loss of $8,000. The amount to be reported under cash flows from financing activities is _____.

$(60,000)

Based solely on this information, the net cash provided (used) by financing activities on the statement of cash flows would be:

$(60,000)

The net cash provided (used) by operating activities is:

$41,500

On December 31, the company's Cash account had a balance of ____.

$54,000

At December 31, 2019, the amount of cash and cash equivalents that will be reported on the company's balance sheet is?

$96,000

The issuance of common stock and declaration and payment of cash dividends will result in the following:

Increase in financing activities for the issuance and a decrease in financing activities for the dividends.

The correct order of the three-step analysis of determining cash provided or used by investing activities is:

Identify changes in investing accounts, explain the changes, report the cash flow effects.

A machine with a cost of $100,000 and accumulated depreciation of $98,000 is sold for $70,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is _____.

$70,000

Under the indirect method of preparing the statement of cash flows, decreases in noncash current operating assets should be:

Added to net income

All of the following are sources of information to prepare the statement of cash flows except:

Prior year's income statement

A statement of cash flows helps answer all of the following

What explains the changes in the cash account? Where does a company spends its cash? How does a company receives its cash?

The _________ method of reporting adjusts net income to get the net cash provided or used by operating activities.

indirect

Each of the following are classified as an operating activity except:

purchase of short-term investments

Each of the following are classified as a noncash investing or financing activity except:

reissuing treasury stock

Under the indirect method of preparing the statement of cash flows, depreciation and amortization should be:

Added to net income

All of the following are correct forms of the accounting equation except:

Cash = Liabilities + Equity + Noncash assets

Under the indirect method of preparing the statement of cash flows, decreases in current liabilities should be:

Deducted from net income

Under the indirect method of preparing the statement of cash flows, increases in current assets should be:

Deducted from net income

Place the steps to preparing the statement of cash flows in the correct order.

Step 1Compute net increase or decrease in cash Step 2Compute net cash from or for operating activities Step 3Compute net cash from or for investing activities Step 4Compute net cash from or for financing activities Step 5Compute net cash from all sources, then prove it

Each of the following are classifications in the statement of cash flows except:

income

Each of the following are classified as a financing activity except:

purchase of long-term investments

Each of the following are classified as an investing activity except:

receipt of interest revenue