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Exam 24: The Statement of Cash Flows

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Question 41

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The resale of treasury stock is classified as a cash inflow from financing activities.

A) True
B) False

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Question 42

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Financing activities include all of the following except:

A) payment of dividends to shareholders.
B) purchases of plant and equipment for cash.
C) receipt of cash upon the issuance of bonds.
D) repurchase of company stock.

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

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Question 43

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How might management utilize the Statement of Cash Flows in evaluating operations?

Based only on the information provided,prepare the final three lines of Magalog Distributing's Statement of Cash Flows.Assume cash from financing and investing activities were zero during the period indicated.

Purchases and sales of land,buildings,and equipment for cash are shown as ____________________ activities on the statement of cash flows.

If the income statement reflects a net loss for the year,the loss is not reported under cash flows from operating activities in the statement of cash flows.

Operating activities include

A corporation received $50,000 in cash when it sold a building and paid $90,000 in cash when it purchased some new machinery.As a result,the statement of cash flows would report

Additional information: Equipment costing $100,000 was sold for $70,000.Accumulated depreciation on this equipment was $20,000. Dividends of $38,000 were declared and paid. Bonds were issued at face value of $300,000. Common stock of $55,000 was issued to acquire land. Investments (stock in IBM)were purchased for $275,000. Using the information provided,prepare the cash flows from investing activities for The Dolmen Company.

The current assets and liabilities of the Lionel Corporation on December 31,2016 and 2015,are listed below.Lionel's net income for 2016 was $75,000.Included in its expenses was depreciation of $17,000.Prepare a schedule of cash flows from operating activities for 2016.

In the ____________________ activities section of the statement of cash flows,net income is adjusted for the amortization of the premium on bonds payable.

The statement of cash flows provides information about cash flows from operating activities,investing activities,and financing activities.

Transactions that provide cash to the business to carry on its activities are

Operating activities include all except

If a corporation issued stock for $70,000 in cash,received $10,000 in cash from a long-term loan,and paid cash dividends totaling $20,000,the net cash provided by its financing activities would be ___________________.

Transactions for the acquisition or disposal of long-term assets are

Corporations do not commonly use the direct method for the Statement of Cash Flows because

A corporation received $80,000 in cash when it sold a building and paid $50,000 in cash when it purchased some new machinery.As a result,the statement of cash flows would report

A decrease in current liabilities is:

Define cash equivalents and list three examples other than coin,currency,and bank accounts.