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Spackel Corporation recorded the following events last year: Spackel Corporation recorded the following events last year: On the statement of cash flows,some of these events are classified as operating activities,some are classified as investing activities,and some are classified as financing activities. Based solely on the information above,the net cash provided by (used in) investing activities on the statement of cash flows would be: A) ($280,000) B) ($390,000) C) ($760,000) D) ($1,286,000) On the statement of cash flows,some of these events are classified as operating activities,some are classified as investing activities,and some are classified as financing activities. Based solely on the information above,the net cash provided by (used in) investing activities on the statement of cash flows would be:


A) ($280,000)
B) ($390,000)
C) ($760,000)
D) ($1,286,000)

E) A) and B)
F) A) and C)

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Beltram Corporation's balance sheet and income statement appear below: Beltram Corporation's balance sheet and income statement appear below: The company did not dispose of any property,plant,and equipment,issue any bonds payable,or repurchase any of its own common stock during the year.The company declared and paid a cash dividend of $13. Required: Prepare a statement of cash flows in good form using the indirect method. Beltram Corporation's balance sheet and income statement appear below: The company did not dispose of any property,plant,and equipment,issue any bonds payable,or repurchase any of its own common stock during the year.The company declared and paid a cash dividend of $13. Required: Prepare a statement of cash flows in good form using the indirect method. The company did not dispose of any property,plant,and equipment,issue any bonds payable,or repurchase any of its own common stock during the year.The company declared and paid a cash dividend of $13. Required: Prepare a statement of cash flows in good form using the indirect method.

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Krech Corporation's comparative balance sheet appears below: Krech Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000.It did not sell or retire any property,plant,and equipment during the year.The company uses the indirect method to determine the net cash provided by operating activities. Which of the following is correct regarding the operating activities section of the statement of cash flows? A) The change in Accounts Receivable will be subtracted from net income;The change in Inventory will be added to net income B) The change in Accounts Receivable will be added to net income;The change in Inventory will be subtracted from net income C) The change in Accounts Receivable will be added to net income;The change in Inventory will be added to net income D) The change in Accounts Receivable will be subtracted from net income;The change in Inventory will be subtracted from net income The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000.It did not sell or retire any property,plant,and equipment during the year.The company uses the indirect method to determine the net cash provided by operating activities. Which of the following is correct regarding the operating activities section of the statement of cash flows?


A) The change in Accounts Receivable will be subtracted from net income;The change in Inventory will be added to net income
B) The change in Accounts Receivable will be added to net income;The change in Inventory will be subtracted from net income
C) The change in Accounts Receivable will be added to net income;The change in Inventory will be added to net income
D) The change in Accounts Receivable will be subtracted from net income;The change in Inventory will be subtracted from net income

E) All of the above
F) A) and B)

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Shoshoni Corporation prepares its statement of cash flows using the indirect method.Which of the following would be added to net income in the operating activities section of the statement? Shoshoni Corporation prepares its statement of cash flows using the indirect method.Which of the following would be added to net income in the operating activities section of the statement? A) Option A B) Option B C) Option C D) Option D


A) Option A
B) Option B
C) Option C
D) Option D

E) A) and B)
F) A) and C)

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The ending and beginning balances of Farmer Corporation's balance sheet accounts for the most recent year are listed below: The ending and beginning balances of Farmer Corporation's balance sheet accounts for the most recent year are listed below: The company's net income (loss)for the year was $0 and its cash dividends were $4,000.It did not dispose of any property,plant,and equipment,retire any bonds payable,or repurchase any of its own common stock during the year. Required: Compute the change in each balance sheet account in the below table.Indicate whether the change in each balance will be recorded in the operating,investing,or financing activities section of the statement of cash flows.For items recorded in the operating activities section,also indicate whether the change will be added to or subtracted from net income.For all other items,indicate whether the change will be added as a cash inflow or subtracted as a cash outflow.The first entry has been filled in as an example. The company's net income (loss)for the year was $0 and its cash dividends were $4,000.It did not dispose of any property,plant,and equipment,retire any bonds payable,or repurchase any of its own common stock during the year. Required: Compute the change in each balance sheet account in the below table.Indicate whether the change in each balance will be recorded in the operating,investing,or financing activities section of the statement of cash flows.For items recorded in the operating activities section,also indicate whether the change will be added to or subtracted from net income.For all other items,indicate whether the change will be added as a cash inflow or subtracted as a cash outflow.The first entry has been filled in as an example. The ending and beginning balances of Farmer Corporation's balance sheet accounts for the most recent year are listed below: The company's net income (loss)for the year was $0 and its cash dividends were $4,000.It did not dispose of any property,plant,and equipment,retire any bonds payable,or repurchase any of its own common stock during the year. Required: Compute the change in each balance sheet account in the below table.Indicate whether the change in each balance will be recorded in the operating,investing,or financing activities section of the statement of cash flows.For items recorded in the operating activities section,also indicate whether the change will be added to or subtracted from net income.For all other items,indicate whether the change will be added as a cash inflow or subtracted as a cash outflow.The first entry has been filled in as an example.

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Adah Corporation prepares its statement of cash flows using the indirect method.Which of the following would be subtracted from net income in the operating activities section of the statement? Adah Corporation prepares its statement of cash flows using the indirect method.Which of the following would be subtracted from net income in the operating activities section of the statement? A) Option A B) Option B C) Option C D) Option D


A) Option A
B) Option B
C) Option C
D) Option D

E) A) and B)
F) A) and C)

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The following events occurred last year at Dorder Corporation: The following events occurred last year at Dorder Corporation: Based on the above information,the cash provided (used) by investing activities for the year on the statement of cash flows would net to: A) ($21,000) B) ($12,000) C) ($32,000) D) ($69,000) Based on the above information,the cash provided (used) by investing activities for the year on the statement of cash flows would net to:


A) ($21,000)
B) ($12,000)
C) ($32,000)
D) ($69,000)

E) B) and D)
F) All of the above

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Salsedo Corporation's balance sheet and income statement appear below: Salsedo Corporation's balance sheet and income statement appear below: Cash dividends were $9.The company sold equipment for $15 that was originally purchased for $10 and that had accumulated depreciation of $5.It did not issue any bonds payable or repurchase any of its own common stock. The net cash provided by (used in) operating activities for the year was: A) $60 B) $95 C) $94 D) $85 Salsedo Corporation's balance sheet and income statement appear below: Cash dividends were $9.The company sold equipment for $15 that was originally purchased for $10 and that had accumulated depreciation of $5.It did not issue any bonds payable or repurchase any of its own common stock. The net cash provided by (used in) operating activities for the year was: A) $60 B) $95 C) $94 D) $85 Cash dividends were $9.The company sold equipment for $15 that was originally purchased for $10 and that had accumulated depreciation of $5.It did not issue any bonds payable or repurchase any of its own common stock. The net cash provided by (used in) operating activities for the year was:


A) $60
B) $95
C) $94
D) $85

E) A) and D)
F) B) and D)

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Salsedo Corporation's balance sheet and income statement appear below: Salsedo Corporation's balance sheet and income statement appear below: Cash dividends were $9.The company sold equipment for $15 that was originally purchased for $10 and that had accumulated depreciation of $5.It did not issue any bonds payable or repurchase any of its own common stock. The net cash provided by (used in) financing activities for the year was: A) ($9) B) ($15) C) ($21) D) $3 Salsedo Corporation's balance sheet and income statement appear below: Cash dividends were $9.The company sold equipment for $15 that was originally purchased for $10 and that had accumulated depreciation of $5.It did not issue any bonds payable or repurchase any of its own common stock. The net cash provided by (used in) financing activities for the year was: A) ($9) B) ($15) C) ($21) D) $3 Cash dividends were $9.The company sold equipment for $15 that was originally purchased for $10 and that had accumulated depreciation of $5.It did not issue any bonds payable or repurchase any of its own common stock. The net cash provided by (used in) financing activities for the year was:


A) ($9)
B) ($15)
C) ($21)
D) $3

E) All of the above
F) A) and B)

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Partin Corporation's cash and cash equivalents consist of cash and marketable securities.Last year the company's cash account increased by $31,000 and its marketable securities account decreased by $22,000.Cash provided by operating activities was $108,000.Net cash used in financing activities was $70,000.Based on this information,the net cash flow from investing activities on the statement of cash flows was:


A) a net $9,000 increase.
B) a net $29,000 decrease.
C) a net $38,000 increase.
D) a net $38,000 decrease.

E) B) and C)
F) C) and D)

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Tani Corporation's most recent balance sheet appears below: Tani Corporation's most recent balance sheet appears below: The company's net income for the year was $18 and it did not sell or retire any property,plant,and equipment during the year.Cash dividends were $4.The net cash provided by (used in) investing activities for the year was: A) ($45) B) $45 C) ($3) D) $3 The company's net income for the year was $18 and it did not sell or retire any property,plant,and equipment during the year.Cash dividends were $4.The net cash provided by (used in) investing activities for the year was:


A) ($45)
B) $45
C) ($3)
D) $3

E) C) and D)
F) None of the above

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Swinger Corporation's comparative balance sheet appears below: Swinger Corporation's comparative balance sheet appears below: The company did not dispose of any property,plant,and equipment during the year.Its net income for the year was $10,000.The net cash provided by operating activities is: A) $32,000 B) $36,000 C) $34,000 D) $28,000 The company did not dispose of any property,plant,and equipment during the year.Its net income for the year was $10,000.The net cash provided by operating activities is:


A) $32,000
B) $36,000
C) $34,000
D) $28,000

E) B) and C)
F) A) and B)

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Cash equivalents on the statement of cash flows consist of any investment that can be converted into cash within one year.

A) True
B) False

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Dukas Corporation's net cash provided by operating activities was $218,000;its net income was $203,000;its capital expenditures were $146,000;and its cash dividends were $49,000. Required: Determine the company's free cash flow.

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Free cash flow = Net cash from...

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Which of the following items would not be classified as an operating activity on the statement of cash flows?


A) Cash received from customers.
B) Dividends paid to the company's own stockholders.
C) Payments to government agencies for taxes.
D) Cash paid to compensate employees.

E) B) and C)
F) B) and D)

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Megan Corporation's net income last year was $98,000.Changes in the company's balance sheet accounts for the year appear below: Megan Corporation's net income last year was $98,000.Changes in the company's balance sheet accounts for the year appear below: The company paid a cash dividend of $36,000 and it did not dispose of any long-term investments or property,plant,and equipment.The company did not issue any bonds payable or repurchase any of its own common stock.The following questions pertain to the company's statement of cash flows. The free cash flow for the year was: A) $123,000 B) $87,000 C) $142,000 D) $269,000 The company paid a cash dividend of $36,000 and it did not dispose of any long-term investments or property,plant,and equipment.The company did not issue any bonds payable or repurchase any of its own common stock.The following questions pertain to the company's statement of cash flows. The free cash flow for the year was:


A) $123,000
B) $87,000
C) $142,000
D) $269,000

E) A) and B)
F) B) and C)

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In a statement of cash flows,issuing bonds payable affects the:


A) operating activities section.
B) financing activities section.
C) investing activities section.
D) free cash flow activities section.

E) C) and D)
F) None of the above

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When computing the net cash provided by operating activities under the indirect method on the statement of cash flows,an increase in prepaid expenses would be added to net income.

A) True
B) False

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Beacham Corporation's net cash provided by operating activities was $115;its net income was $95;its capital expenditures were $65;and its cash dividends were $17.The company's free cash flow was:


A) $292
B) $13
C) $33
D) $128

E) A) and B)
F) A) and C)

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The direct method of preparing the statement of cash flows will show the same increase or decrease in cash as the indirect method.

A) True
B) False

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