1.All of the following should be recorded in the operatingactivities section of the statement of cash flows EXCEPT:
a decrease in inventory.
the total credits to the accumulated depreciation account.
a decrease in prepaid expenses.
a purchase of equipment in exchange for cash.
an increase in income taxes payable.
2. Which of the following would be classified as a financingactivity on the statement of cash flows?
Interest paid to a lender.
Dividends paid to the company's common stockholders.
Cash paid to acquire a long-term investment.
Cash received from a loan that was made to another company.
3.In a statement of cash flows, all of the following would beclassified as financing activities except:
the collection of cash related to a loan made to anotherentity.
the payment of a cash dividend on the company's own commonstock.
the cash paid to retire bonds payable.
the sale of the company's own common stock for cash.
4. The statement of cash flows:
serves as a replacement for the income statement and balancesheet.
explains the change in the cash balance at one point intime.
explains the change in the cash balance for one period oftime.
both A and B above.
5.In a statement of cash flows, receipts from sales of property,plant, and equipment should be classified as a(n):
Operating activity.
Financing activity.
Investing activity.
Selling activity.
1.All of the following should be recorded in the operatingactivities section of the statement of cash flows EXCEPT:
a decrease in inventory.
the total credits to the accumulated depreciation account.
a decrease in prepaid expenses.
a purchase of equipment in exchange for cash.
an increase in income taxes payable.
2. Which of the following would be classified as a financingactivity on the statement of cash flows?
Interest paid to a lender.
Dividends paid to the company's common stockholders.
Cash paid to acquire a long-term investment.
Cash received from a loan that was made to another company.
3.In a statement of cash flows, all of the following would beclassified as financing activities except:
the collection of cash related to a loan made to anotherentity.
the payment of a cash dividend on the company's own commonstock.
the cash paid to retire bonds payable.
the sale of the company's own common stock for cash.
4. The statement of cash flows:
serves as a replacement for the income statement and balancesheet.
explains the change in the cash balance at one point intime.
explains the change in the cash balance for one period oftime.
both A and B above.
5.In a statement of cash flows, receipts from sales of property,plant, and equipment should be classified as a(n):
Operating activity.
Financing activity.
Investing activity.
Selling activity.
Related questions
1.)Spade Company recorded the following events lastyear:
| Insurance of shares of the company's own commonstock | $210,000 |
| Purchase of long-term investment | $96,000 |
| Dividends paid to the company's own shareholders | $55,800 |
| Cash paid to suppliers for inventory purchases | $3,200 |
| Repayment of principal on the company's own bonds | $214,000 |
| Interest paid to lenders | $28,800 |
| Collection by Spade of a loan made to anothercompany | $226,000 |
| Purchase of equipment | $550,000 |
On thestatement of cash flows, some of these events are classified asoperating activities, some are classified as investing activities,and some are classified as financing activities.
Basedsolely on the information above, the net cash provided by (used in)financing activities on the statement of cash flows would be:(PLEASE SHOW WORK TO GET RATED!!!)
| $69,000 | |
| $(59,800) | |
| $1,383,800 | |
| $(141,400) |
Statement of Cash FlowsâIndirect Method
The comparative balance sheet of Amelia Enterprises, Inc. atDecember 31, 2014 and 2013, is as follows:
| Dec. 31, 2014 | Dec. 31, 2013 | ||||
| Assets | |||||
| Cash | $72,150 | $88,890 | |||
| Accounts receivable (net) | 110,870 | 119,830 | |||
| Merchandise inventory | 158,400 | 148,510 | |||
| Prepaid expenses | 6,450 | 4,500 | |||
| Equipment | 322,640 | 266,100 | |||
| Accumulated depreciation-equipment | (83,890) | (65,260) | |||
| Total | $586,620 | $562,570 | |||
| Liabilities and Stockholders'Equity | |||||
| Accounts payable (merchandise creditors) | $123,190 | $117,580 | |||
| Mortgage note payable | 0 | 168,770 | |||
| Common stock, $1 par | 19,000 | 12,000 | |||
| Paid-in capital in excess of par-common stock | 278,000 | 159,000 | |||
| Retained earnings | 166,430 | 105,220 | |||
| Total | $586,620 | $562,570 | |||
Additional data obtained from the income statement and from anexamination of the accounts in the ledger for 2014 are asfollows:
Net income, $156,700.
Depreciation reported on the income statement, $40,720.
Equipment was purchased at a cost of $78,630, and fullydepreciated equipment costing $22,090 was discarded, with nosalvage realized.
The mortgage note payable was not due until 2016, but the termspermitted earlier payment without penalty.
7,000 shares of common stock were issued at $18 for cash.
Cash dividends declared and paid, $95,490.
Required:
Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Use the minus signto indicate cash out flows, cash payments, decreases in cash andfor any adjustments, if required.
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