Subunit 19

A company calculated the following data for the period: Cash received from customers $25,000

$14,000

What amounts should Pimlico report in its statement of cash flows for the year ended December 31, Year 2, for cash paid for selling expenses?

$141,000

The Marburg Corporation owns extensive rental property. For some of this property, rent is paid in advance.

$155,000

Hanford Co. reported bonds payable for $47,000 on December 31, Year 1, and $50,000 on December 31, Year 2.

$17,000

Mukden Co. reported cost of goods sold $270,000 for the year just ended. Additional information is as follows:

$298,000

What amounts should Pimlico report in its statement of cash flows for the year ended December 31, Year 2, for cash paid for interest?

$3,800

Abbott Co. is preparing its statement of cash flows for the year. Abbott's cash disbursements during the year included the following:

$300,000

Questions 23 and 24 are based on the following information. Ithaca Co. reported net income of $300,000 for the current year. Changes occured in several balance sheet accounts as follows: In Ithaca's current-year statement of cash flows, net cash provided by operating activities should be

$347,000

Manitoba Company acquired copyrights from authors, in some cases paying advance royalties and in others paying royalties within 30 days of year end.

$350,000

The net income of Hudson Co. was $3 million for the year ended December 31, Year 1. Additional information is as follows:

$4,600,000

Honshu Co. has provided the following current account balances for the preparation of the annual statement of cash flows:

$75,700

The comparative statement of financial position for an entity that had profit of $150,000 for the year ended December 31, Year 2, and paid $125,000 of dividends during Year 2 is as follows: Cash 12/31/YR2 12/31/YR1 A/R $150,000 $180,000

- $35,000

In a statement of cash flows (indirect method) of a business, an increase in inventories should be presented as a(n)

Deduction from income from continuing operations

The following information was taken from the accounting records of Gorky Corporation for the year ended December 31, Year 1:

$1,400,000 and $7,200,000

Gascony Co. had the following activities during the current year:

$41,000

The following information was taken from financial statements of Homburg Corp. for the year just ended:

$429,200

Questions 33 through 36 are based on the following information. Pimlico Corp. What amounts should Pimlico report in its statement of cash flows for the year ended December 31, Year 2, for cash collected from customers?

$535,800

The following balances were reported by Oland Co. at December 31, Year 2 and Year 1

$545,000

Hellespont Company uses the indirect method to prepare its statement of cash flows. It should present the recognition of a loss from the impairment of goodwill as a(n)

Addition to net income

A statement of cash flows is to be presented in general-purpose external financial statemetns by which of the following?

All businesses and not-for-profit entities.

On September 1, Year 1, Gardd Co. signed a 20-year building lease that it reported as a capital lease.

An outflow equal to the Year 1 principal payments only

Which of the following should be reported in a statement of cash flows issued by Grady Company?

Cash flows per share should not be reported.

Ghent Co. purchased a 3-month U.S. Treasury bill. In preparing Ghent's statement of cash flows, this purchase would

Have no effect

In a statement of cash flows, which of the following items is reported as a cash outflow from financing activities? I. Payments to retire mortgage notes II. Interest payments on mortgage notes III. Dividend payments

I and III only

If the indirect method is used to present the statement of cash flows of a business, depreciation expense is

Presented as an addition to net income in the operating section of the statement

In Ithaca's current-year statement of cash flows, net cash used in investing activities should be

$2,000

What amounts should Pimlico report in its statement of cash flows for the year ended December 31, Year 2, for cash paid for income taxes?

$25,800

In its statement of cash flows issued for the year ending September 30, Berne Company reported a net cash inflow rom operating activities of $123,000.

$29,000

Jungfrau Company had net income of $150,000 for the year ended December 31, Year 2, and paid $125,000 of dividends during Year 2.

$90,000

Which of the following would be reported as an investing activity in a company's statement of cash flows?

Collection of a note receivable from a related party

Cash flows from operating activities may be presented in either a direct or an indirect (reconciliation) format. In which of these formats is cash collected from customers presented as a gross amount?

Direct: Yes Indirect: No

In a statement of cash flows of a business enterprise, which of the following will increase reported cash flows from operating activities using the direct method? (Ignore income tax considerations.)

Dividends received from investments

Which combination below explains the effect of credit card interest incurred and paid during the period on (1) equity on the statement of financial position and (2) the statement of cash flows?

Effect on Equity on Statement of Financial Position: Decrease Reflected on Statement of Cash Flows as a(n): Operating or financing outflow

Ionia Company reports operating activities in its statement of cash flows using the indirect method.

Excess of Treasury Stock Acquisition Cost over Sales Proceeds (Cost Method): No Bond Discount Amortization: Yes

In preparing its statement of cash flows, if Harlingen Co. omites the payment of cash dividends, the net cash provided by <List A> activities will be <List B>.

List A: Financing List B: Overstated

In the statement of cash flows, the payment of cash dividends appears in the <List A> activities section as a <List B> of cash.

List A: Operating or financing List B: Use

In the indirect presentation of cash flows from operating activities, net income of a business is adjusted for non cash revenues, gains, expenses, and activities. A reconciliation of net cash flows from operating activities to net income

May be either reported in the statement of cash flows or presented separately in a related disclosure

A corporation issues a balance sheet and income statement for the current year. It also issues comparative income statements for each of the 2 previous years and a comparative balance sheet for 1 previous year. A statement of cash flows

Must be issued for all 3 years

Helicon Co. accrued a gain from the sale of used equipment for cash. The gain should be reported in a statement of cash flows using the indirect method in

Operating activities as a deduction from income

Which of the following transactions should be classified as an investing activity on an entity's statement of cash flows?

Sale of property, plant, and equipment

The primary purpose of a statement of cash flows of a business is to provide relevant informatino about

The cash receipts and cash disbursements of an enterprise during a period