Statement of cash flows1 choose the combination that best

Assignment Help Financial Accounting

Reference no: EM13377076

Statement of Cash Flows

1. Choose the combination that best reflects the appropriate classification of cash received from operating, investing and financing activities.

Operating Investing Financing

a.	Cash paid by customers Sale of operational assets Issuance of bonds payable
b.	Dividends received Cash paid by customers Issuance of bonds payable
c.	Sale of operational assets Dividends received Cash paid by customers
d.	Issuance of bonds payable Sale of operational assets Dividends received

2. Which of the following is a non-cash transaction that should be disclosed in a schedule accompanying the statement of cash flows?

a.	Sale of an investment for cash
b.	Purchase of a machine for cash
c.	Issuance of common stock in exchange for land
d.	Declaration and payment of a cash dividend on common stock

3. Which of the following is not classified as an operating activity?

a.	Interest received
b.	Interest paid
c.	Dividends received
d.	Dividends paid

4. The amortization of patents should be presented in a statement of cash flows prepared using the indirect method as a(n)

a.	inflow and outflow of cash.
b.	outflow of cash.
c.	addition to net income in the adjustments to reconcile net income to cash from operating activities.
d.	deduction from net income in the adjustments to reconcile net income to cash from operating activities.

5. Cash inflows from investing activities would include all of the following except

a.	proceeds from sale of operating assets.
b.	proceeds from sale of investments accounted for by the equity method.
c.	interest collect on notes receivable.
d.	proceeds from sale of securities available for sale.

6. Which of the following would not be a cash flow from financing activities for Carlton Company?

a.	Cash from issuance of Carlton Co. common stock
b.	Cash from issuance of Carlton Co. preferred stock
c.	Cash from issuance of Carlton Co. bonds payable
d.	Cash from sale of Fern Company common stock

7. Financial information for Roberts Company at December 31, 2011, and for the year then ended, are presented below:

		Balance Sheet
			December 31,
			2011	2010
Cash			$ 31,000	$ 15,000
Accounts receivable			28,500	30,000
Allowance for doubtful accounts			(2,000)	(1,500)
Inventory			15,000	10,000
Prepaid insurance			1,400	2,400
Property, plant, and equipment			81,000	80,000
Accumulated depreciation			(16,000)	(20,000)
Land			81,100	40,100
	Total assets		$ 220,000	$ 156,000

Accounts payable			$ 11,000	$ 10,000
Wages payable			1,000	2,000
Interest payable			1,000	-
Notes payable, long-term			46,000	20,000
Common stock, nopar			136,000	100,000
Retained earnings			25,000	24,000
	Total liabilities and
	stockholders' equity		$ 220,000	$ 156,000


		Income Statement

	Sales revenue		$ 80,000
	Cost of goods sold		(35,000)
	Depreciation expense		(5,000)
	Bad debt expense		(1,000)
	Insurance expense		(1,000)
	Interest expense		(2,000)
	Salaries and wages expense		(12,000)
	Income tax expense		(3,000)
	Remaining expenses		(13,000)
	Loss on sale of operational assets		(2,000)
	Net income		$ 6,000

Additional information:

1.	Wrote off $500 accounts receivable as uncollectible.

2.	Sold an operational asset for $4,000 cash (cost, $15,000, accumulated depreciation, $9,000).

3.	Issued common stock for $5,000 cash.

4.	Declared and paid a cash dividend of $5,000.

5.	Purchased land for $20,000 cash.

6.	Acquired land for $21,000, and issued common stock as payment in full.

7.	Acquired operational assets, cost $16,000; issued a $16,000, three-year, interest-bearing note payable.

8.	Paid a $10,000 long-term note installment by issuing common stock to the creditor.

9.	Borrowed cash on a long-term note, $20,000.

Required:

Prepare the statement of cash flows using the indirect method.

Reference no: EM13377076

Questions Cloud

1 which answer is falsea the concept of working capital is : 1 which answer is false?a. the concept of working capital is a basis for determining liquidityb. the working capital is

Question 1for an upcoming trip pat wants to buy euros at : question 1for an upcoming trip pat wants to buy euros at the local bank when the current exchange rate quoted in the

Would you buy stock in this company are there questions : would you buy stock in this company? are there questions you would want answered before answering the original

Full disclosure in financial reporting1 which of the : full disclosure in financial reporting1. which of the following subsequent events post-balance-sheet events would

Statement of cash flows1 choose the combination that best : statement of cash flows1. choose the combination that best reflects the appropriate classification of cash received

Changes and error analysis1which of the following is not a : changes and error analysis1.which of the following is not a change in accounting principle?a.a change from fifo to lifo

1 suppose the demand for a product is given by p 100 - 2q : 1. suppose the demand for a product is given by p 100 - 2q. the supply is given by p 20 6q. if an 8 per unit excise

Pensions and postretirement benefits1 alternative methods : pensions and postretirement benefits1. alternative methods exist for the measurement of the pension obligation

Income taxes1 which of the following creates a permanent : income taxes1. which of the following creates a permanent difference between financial income and taxable

User Account

All Pages