Chapter 13 Accounting 2301

Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method

A loss on the sale of land Losses on sales of long-term assets must be added back to net income in the operating activities section because long-term asset transactions are investing activities

Step one of reconciling net income to cash flow from operating activities is to

Add appreciation expense The first step is to add back depreciation expense

Dividends declared during the year were 54,000 the dividends payable account decreased by 8000 which of the following will appear in the financing activity section of the statement of cash flows

Cash paid for dividends (62,000)

On the statement of cash flows the cash flow from operating activities section would include

Cash payments for salaries Receipts from the sale of investments are considered a source of cash and are recorded in cash flows from investing activities

Which of the following would indicate a cash outflow To appear in the financing activity section of the statement of cash flows

Increase in treasury stock account

In preparing the cash flows from financing activity section of the statement of cash flows which type of accounts are analyzed for changes

Long-term liabilities and stockholders equity The cash flows from financing activities section reports the cash inflows and outflows related to changes in a companies long-term liabilities and stockholders equity

Cash dividends paid would be shown on the statement of cash flows under _______ activities

financing Dividends are related to financing activities