Accounting CH. 13

A company had the following cash flows in the current year: cash payments to purchase investments: $20,000; cash payments to employees: $15,000; cash payments to suppliers for inventory: $30,000; cash receipts from collecting accounts receivable: $60,000. What is the cash flow from operating activities for the year?

$15,000

True or false: The ability of a company to raise money through debt and equity financing is not related to its ability to generate cash flows from operations. True false question.

False

True or false: The statement of cash flows is believed to provide information that is particularly useful to stockholders, creditors, suppliers, and employees.

True

Cash flows from investing activities relate to the acquisition and disposal of all of the following except:

merchandise inventory from suppliers.

A company had the following cash flows in the current year: cash payments to purchase investments: $20,000; cash payments to acquire plant assets: $15,000; cash payments to suppliers for inventory: $30,000; cash receipts from collecting accounts receivable: $60,000. What is the negative cash flow from investing activities for the year?

$35,000

A company had sales of $400,000 during a year in which its accounts receivable decreased by $25,000. What is the amount of cash provided by sales to customers in the operating activities section of the statement of cash flows?

$425,000

The financial statement that focuses entirely on a single asset in the balance sheet is the statement of

cash flows

In the statement of cash flows, cash flows from operating activities include which of the following? (Select all that apply).

cash paid for interest cash received from customers cash paid to suppliers cash paid to employees

In the statement of cash flows, cash flows from financing activities include which of the following? (Select all that apply).

cash paid to purchase treasury stock cash paid in dividends to stockholders cash received from the sale of stock to stockholders proceeds from short-term borrowings