ACC

The following information is available from the current period financial statements: Net income $175,000 Depreciation expense28,000 Increase in accounts receivable 16,000 Decrease in accounts payable 21,000 (The net cash flow from operating activities using the indirect method is: $166,000 $184,000 $110,000 $240,000

$166,000

Zenith Corporation sells some of its used store fixtures. The acquisition cost of the fixtures is $12,500, the accumulated depreciation on these fixtures is $9,750 at the time of sale. The fixtures are sold for $5,300. The value of this transaction in the Investing section of the statement of cash flows is: $12,500 $5,300 $2,750 $2,550

$5,300

Operating Activities

-Cash received from customers -Cash paid for merchandise -Cash paid for operating expenses -Cash paid for interest -Cash paid for income taxes -Cash paid to employees Cash paid for inventory -Cash paid for taxes -Cash received from providing services -Cash received from sale of merchandise

Accounts receivable resulting from sales to customers amounted to $40,000 and $31,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is $120,000. $129,000. $151,000. $111,000.

$129,000.

Financing Activities

-Cash received from obtaining long term debt. -Cash received from issuing stock. -Cash paid for dividends to stockholders. -Cash used to repurchase common stock (treasury stock). -Cash paid to repay long-term liabilities. -Cash received from obtaining note proceeds (borrowing).

investing activities

-Cash received from sale of property, plant, and equipment. -Cash received from the sale of long term investments. -Cash paid for property, plant, and equipment. -Cash paid for long term investments. -Cash paid for patent -Cash paid for long term assets. -Cash paid for intangible assets.

Land costing $140,000 was sold for $173,000 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land? $173,000 $140,000 $313,000 $33,000

$173,000

Rogers Company reported net income of $35,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $8,000 was recorded. Net cash provided by operating activities for the year is $53,000. $47,000. $33,000 $37,000.

$33,000

The cost of merchandise sold during the year was $50,000. Merchandise inventories were $12,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable were $6,000 and $5,000 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total $49,000 $47,000 $51,000 $53,000

$49,000

Cash dividends of $50,000 were declared during the year. Cash dividends payable were $10,000 and $5,000 at the beginning and end of the year, respectively. The amount of cash for the payment of dividends during the year is $55,000 $50,000 $65,000 $60,000

$55,000

Sales for the year were $600,000. Accounts receivable were $100,000 and $80,000 at the beginning and end of the year. Cash received from customers to be reported on the cash flow statement using the direct method is $700,000 $600,000 $580,000 $620,000

$620,000

In preparing the cash flows from operating activities section of the statement of cash flows by the indirect method, the amortization of bond discount for the period is deducted from the net income for the period. True False

False

Cash receipts received from the issuance of a mortgage notes payable would be classified as investing activities. operating activities. either financing or investing activities. financing activities.

financing activities.

$271,000

The net income reported on the income statement for the current year was $250,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:

Cash inflows and outflows are not netted in the investing or financing sections of the statement of cash flows but are separately disclosed to give the reader full information. True False

True

There is no difference in the Investing and Financing sections of the statement of cash flows using the indirect and direct method. True False

True

Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method? an increase in inventory a decrease in accounts payable preferred dividends declared and paid a decrease in accounts receivable

a decrease in accounts receivable

A ten-year bond was issued at par for $250,000 cash. This transaction should be shown on a statement of cash flows under investing activities financing activities noncash investing and financing activities operating activities

financing activities

Cash paid to purchase long-term investments would be reported in the statement of cash flows in the cash flows from operating activities section the cash flows from financing activities section the cash flows from investing activities section a separate schedule

the cash flows from investing activities section