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Exam 12: Reporting and Analyzing Cash Flows

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Question 51

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Define and explain significant noncash investing and financing activities and the method of reporting them on the statement of cash flows.

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Noncash investing and financing activiti...

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Question 52

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The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts,such as receipts from customers,and subtracts the major items of operating cash disbursements,such as cash paid for merchandise,is referred to as the:

A) Direct method of reporting net cash provided or used by operating activities.
B) Cash basis of accounting.
C) Classified statement of cash flows.
D) Indirect method of reporting net cash provided or used by operating activities.
E) Net method of reporting cash flows from operating activities.

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

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Question 53

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The reporting of investing and financing activities is _________________ under the direct and indirect methods of preparing the statement of cash flows.

The cash flow on total assets ratio is defined as average total assets divided by operating income.

For each of the following independent cases,use the information provided to calculate the missing cash inflow or cash outflow: (a.) (b.) (c.) (d.)

The accounting records of Miller Company provided the data below ($ in 000s) . What is the net cash provided (used) by operating activities?

Financing activities include the purchase and sale of long-term assets.

The purchase of stock in another company is considered to be a financing activity.

For each of the following separate cases,use the information provided to calculate the missing cash inflow or cash outflow: (a) (b) (c)

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from operating activities generally affect:

A company's income statement showed the following: net income,$124,000; depreciation expense,$30,000,and gain on sale of plant assets,$14,000.An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses decreased $6,200; accounts payable increased $3,400.Calculate the net cash provided or used by operating activities.

Explain the use of a spreadsheet in the preparation of the statement of cash flows.

Activities that involve the production or purchase of merchandise and the sale of goods and services to customers,including expenditures related to administering the business,are classified as:

Both cash dividends received and interest received are considered to be investing inflows.

A corporation reported average total assets of $397,350 in 2012 and $440,800 in 2013.Its net operating cash flow was $35,667 for 2012 and $35,790 for 2013.Calculate the cash flow on total assets ratio for both years.Comment on the results.

The statement of cash flows is:

The primary purpose of the statement of cash flows is to report all major cash receipts (inflows) and cash payments (outflows) during a period.

The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the:

The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:

Northwest Corporation's salaries expense was $18.0 million.What is the amount of cash that the company paid for salaries if the Salaries Payable account increased by $4.0 million?