Filters
Question type
Study Flashcards

Burns Corporation's net income last year was $91,000. Changes in the company's balance sheet accounts for the year appear below: Burns Corporation's net income last year was $91,000. Changes in the company's balance sheet accounts for the year appear below: The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,000. Required: a. Construct in good form the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) b. Construct in good form the investing activities section of the company's statement of cash flows for the year. c. Construct in good form the financing activities section of the company's statement of cash flows for the year. The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,000. Required: a. Construct in good form the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) b. Construct in good form the investing activities section of the company's statement of cash flows for the year. c. Construct in good form the financing activities section of the company's statement of cash flows for the year.

Correct Answer

verifed

verified

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) All of the above
F) A) and C)

Correct Answer

verifed

verified

In a statement of cash flows, a change in an income taxes payable account would be recorded in the:


A) operating activities section.
B) financing activities section.
C) investing activities section.
D) stockholders' equity section.

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

Furis Corporation's cash and cash equivalents consist of cash and marketable securities. Last year the company's cash account decreased by $12,000 and its marketable securities account increased by $19,000. Cash provided by operating activities was $18,000. Net cash used in financing activities was $12,000. Based on this information, the net cash flow from investing activities on the statement of cash flows was:


A) a net $12,000 decrease.
B) a net $1,000 increase.
C) a net $6,000 decrease.
D) a net $6,000 increase.

E) A) and D)
F) A) and C)

Correct Answer

verifed

verified

Buckley Corporation's most recent comparative balance sheet appears below: Buckley Corporation's most recent comparative balance sheet appears below: The company's net income for the year was $91 and it paid a cash dividend of $22. It did not dispose of any property, plant, and equipment during the year. The company did not retire any bonds payable or repurchase any of its own common stock. -The free cash flow for the year was: A) $(8) B) $14 C) $128 D) $308 The company's net income for the year was $91 and it paid a cash dividend of $22. It did not dispose of any property, plant, and equipment during the year. The company did not retire any bonds payable or repurchase any of its own common stock. -The free cash flow for the year was:


A) $(8)
B) $14
C) $128
D) $308

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

Correct Answer

verifed

verified

Manila Corporation's comparative balance sheet appears below: Manila Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was $0 and its cash dividends were $2,000. It did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. Required: Compute the change in each balance sheet account denoted with an asterisk (*). 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 $2,000. It did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. Required: Compute the change in each balance sheet account denoted with an asterisk (*). 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.

Correct Answer

verifed

verified

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) None of the above
F) A) and D)

Correct Answer

verifed

verified

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) A) and D)
F) A) and C)

Correct Answer

verifed

verified

Buckley Corporation's most recent comparative balance sheet appears below: Buckley Corporation's most recent comparative balance sheet appears below: The company's net income for the year was $91 and it paid a cash dividend of $22. It did not dispose of any property, plant, and equipment during the year. The company did not retire 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) $(22) B) $3 C) $4 D) $(15) The company's net income for the year was $91 and it paid a cash dividend of $22. It did not dispose of any property, plant, and equipment during the year. The company did not retire 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) $(22)
B) $3
C) $4
D) $(15)

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

Correct Answer

verifed

verified

Cash received from the sale of equipment the company had used in its own operations would be considered an operating activity on a statement of cash flows.

A) True
B) False

Correct Answer

verifed

verified

Collecting the principal on a loan to another company would be reported on the investing activities section of the statement of cash flows.

A) True
B) False

Correct Answer

verifed

verified

An increase in accrued liabilities of $1,000 during a year would be shown on the company's statement of cash flows prepared under the indirect method as:


A) an addition to net income of $1,000 in order to arrive at net cash provided by operating activities.
B) a deduction from net income of $1,000 in order to arrive at net cash provided by operating activities.
C) a deduction of $1,000 under investing activities.
D) an addition of $1,000 under financing activities.

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

Correct Answer

verifed

verified

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 question pertain to the company's statement of cash flows. -The net cash provided by (used in) financing activities last year was: A) $(46,000) B) $46,000 C) $(10,000) D) $10,000 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 question pertain to the company's statement of cash flows. -The net cash provided by (used in) financing activities last year was:


A) $(46,000)
B) $46,000
C) $(10,000)
D) $10,000

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

Correct Answer

verifed

verified

Carriveau Corporation's most recent balance sheet appears below: Carriveau Corporation's most recent balance sheet appears below: Net income for the year was $172. Cash dividends were $35. The company did not sell or retire any property, plant, and equipment during the year. The net cash provided by (used in) operating activities for the year was: A) $183 B) $246 C) ($11) D) $161 Net income for the year was $172. Cash dividends were $35. The company did not sell or retire any property, plant, and equipment during the year. The net cash provided by (used in) operating activities for the year was:


A) $183
B) $246
C) ($11)
D) $161

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

Correct Answer

verifed

verified

Morbeck Corporation's net income last year was $56,000. The company paid a cash dividend of $31,000 and did not sell or retire any property, plant, and equipment last year. Changes in selected balance sheet accounts for the year appear below: Morbeck Corporation's net income last year was $56,000. The company paid a cash dividend of $31,000 and did not sell or retire any property, plant, and equipment last year. Changes in selected balance sheet accounts for the year appear below: Based solely on this information, the net cash provided by operating activities under the indirect method on the statement of cash flows would be: A) $83,000 B) $102,000 C) $29,000 D) $79,000 Based solely on this information, the net cash provided by operating activities under the indirect method on the statement of cash flows would be:


A) $83,000
B) $102,000
C) $29,000
D) $79,000

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

Correct Answer

verifed

verified

When computing the net cash provided by operating activities using the indirect approach on the statement of cash flows, which item below would NOT be added to net income?


A) Depreciation.
B) Loss on the sale of an asset.
C) Decrease in accounts payable.
D) Decrease in prepaid expenses.

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

Correct Answer

verifed

verified

McCorey Corporation recorded the following events last year: McCorey 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) $110,000 B) $55,000 C) $150,000 D) $130,000 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) $110,000
B) $55,000
C) $150,000
D) $130,000

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

Correct Answer

verifed

verified

Alcoser Corporation's most recent balance sheet appears below: Alcoser Corporation's most recent balance sheet appears below: Net income for the year was $60. Cash dividends were $12. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) operating activities for the year was: A) $51 B) $69 C) $9 D) $86 Net income for the year was $60. Cash dividends were $12. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) operating activities for the year was:


A) $51
B) $69
C) $9
D) $86

E) A) and D)
F) C) and D)

Correct Answer

verifed

verified

In a statement of cash flows, the sale of a long-term investment would ordinarily be classified as:


A) an operating activity.
B) a financing activity.
C) an investing activity.
D) a lending activity.

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

Correct Answer

verifed

verified

Financial statements of Rukavina Corporation follow: Financial statements of Rukavina Corporation follow: Cash dividends were $8. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) financing activities for the year was: A) $(8) B) $(44) C) $(51) D) $1 Financial statements of Rukavina Corporation follow: Cash dividends were $8. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) financing activities for the year was: A) $(8) B) $(44) C) $(51) D) $1 Cash dividends were $8. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) financing activities for the year was:


A) $(8)
B) $(44)
C) $(51)
D) $1

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

Correct Answer

verifed

verified

Showing 41 - 60 of 132

Related Exams

Exam 1

Master Budgeting

173 Questions

Exam 2

Flexible Budgets and Performance Analysis

307 Questions

Exam 3

Standard Costs and Variances

187 Questions

Exam 4

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

111 Questions

Exam 5

Journal Entries to Record Variances

56 Questions

Exam 6

Performance Measurement in Decentralized Organizations

115 Questions

Exam 7

Transfer Pricing

28 Questions

Exam 8

Service Department Charges

51 Questions

Exam 9

Differential Analysis: the Key to Decision Making

185 Questions

Exam 10

Capital Budgeting Decisions

169 Questions

Exam 11

The Concept of Present Value

13 Questions

Exam 12

Income Taxes and the Net Present Value Method

147 Questions

Exam 14

The Direct Method of Determining the Net Cash Provided by Operating Activities

56 Questions

Exam 15

Financial Statement Analysis

289 Questions

Show Answer