Accounting Final 16 Post

Which of the following should be shown on a statement of cash flows under the financing activity section?

c. Payment of cash dividends on common stock.

Sanchez Inc. reported the following on the company's cash flow statement in 2012: Thirty percent of the cash flow used for investing activities was used to replace existing capacity. What is the free cash flow for 2012?

c. $440,000

If a gain of $7,000 results from selling (for cash) office equipment having a book value of $55,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

a. $62,000

Cash received for preferred stock dividends should be shown on the statement of cash flows under __________ activities.

a. operating

The net income reported on the income statement for the current year was $295,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $5,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are: What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

b. $312,000

If the free cash flow changed from $50,000 to $40,000, the change

b. indicates an unfavorable trend.

Analysts often use free cash flow, rather than cash flows from _________ activities, to measure the financial strength of a business.

b. operating

The net income reported on the income statement for the current year was $275,000. Depreciation recorded on fixed assets and amortization of patents for the year were $30,000 and $4,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are: What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

d. $324,000

A mortgage incurred in exchange for an office building would be reported in the statement of cash flows in

d. a separate section that appears at the bottom of the statement.