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The accounting records of Eastlake Industries provided the data below. The accounting records of Eastlake Industries provided the data below. Required: Prepare a reconciliation of net income to net cash flows from operating activities. Required: Prepare a reconciliation of net income to net cash flows from operating activities.

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Partial balance sheets and additional information are listed below for Julius Company. Partial balance sheets and additional information are listed below for Julius Company. Additional information for 2013: Net income was $70,000. Depreciation expense was $30,000. Sales totaled $600,000. Cost of goods sold totaled $325,000. Required: Calculate the amount of cash received from customers during 2013. Additional information for 2013: Net income was $70,000. Depreciation expense was $30,000. Sales totaled $600,000. Cost of goods sold totaled $325,000. Required: Calculate the amount of cash received from customers during 2013.

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Listed below are the reporting classifications for a statement of cash flows using the direct method for reporting operating cash flows. Indicate the reporting classification that would apply to each of the five transactions described below by placing the number of the reporting classification in the space provided by each transaction. Listed below are the reporting classifications for a statement of cash flows using the direct method for reporting operating cash flows. Indicate the reporting classification that would apply to each of the five transactions described below by placing the number of the reporting classification in the space provided by each transaction.

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Which of the following never requires an outflow of cash?


A) Early extinguishment of debt.
B) Retirement of common stock.
C) Payment of dividends.
D) Amortization of patent.

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

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Hemmer Company reported net income for 2013 in the amount of $40,000. The company's financial statements also included the following: Hemmer Company reported net income for 2013 in the amount of $40,000. The company's financial statements also included the following: What is net cash provided by operating activities? A) $38,000. B) $43,000. C) $35,000. D) $48,000. What is net cash provided by operating activities?


A) $38,000.
B) $43,000.
C) $35,000.
D) $48,000.

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

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During the year, cash increased by $300 million. Investing and financing activities created positive cash flow totaling $500 million. What were net cash flows from operating activities in the statement of cash flows?


A) Inflow of $300 million.
B) Outflow of $200 million.
C) Outflow of $300 million.
D) Inflow of $600 million.

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

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Selected information from Large Corporation's accounting records and financial statements for 2013 is as follows ($ in millions) : Selected information from Large Corporation's accounting records and financial statements for 2013 is as follows ($ in millions) : Large prepares its financial statements in accordance with IFRS. In its statement of cash flows, Large most likely reports net cash outflows from investing activities of: A) $18 million. B) $28 million. C) $38 million. D) $68 million. Large prepares its financial statements in accordance with IFRS. In its statement of cash flows, Large most likely reports net cash outflows from investing activities of:


A) $18 million.
B) $28 million.
C) $38 million.
D) $68 million.

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

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Which of the following is reported as a deduction from net income when using the indirect method to determine net cash flows from operating activities?


A) Depreciation expense.
B) Amortization of a patent.
C) Amortization of premium on bonds payable.
D) Dividends declared.

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

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Rampart Inc. recorded the following transaction: Rampart Inc. recorded the following transaction: In the statement of cash flows, this would be reported as a: A) $3 million outflow from investing activities. B) $15 million outflow from investing activities. C) $3 million outflow from investing activities and $12 million noncash investing and financing activity. D) None of the above is correct. In the statement of cash flows, this would be reported as a:


A) $3 million outflow from investing activities.
B) $15 million outflow from investing activities.
C) $3 million outflow from investing activities and $12 million noncash investing and financing activity.
D) None of the above is correct.

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

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In preparing its cash flow statement for the year ended December 31, 2013, Green Co. gathered the following data: In preparing its cash flow statement for the year ended December 31, 2013, Green Co. gathered the following data: In its December 31, 2013, statement of cash flows, what amount should Green report as net cash from financing activities? A) $40,000. B) $54,000. C) $60,000. D) $74,000. In its December 31, 2013, statement of cash flows, what amount should Green report as net cash from financing activities?


A) $40,000.
B) $54,000.
C) $60,000.
D) $74,000.

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

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In its 2013 income statement, WME reported $440,000 for the cost of goods sold. WME paid inventory suppliers $380,000 in 2013, and its inventory balance decreased by $41,000 during the year. In its reconciliation schedule, WME should:


A) Show a $19,000 positive adjustment to net income under the indirect method for the increase in accounts payable.
B) Show a $19,000 positive adjustment to net income under the indirect method for the decrease in accounts payable.
C) Show a $19,000 negative adjustment to net income under the indirect method for the increase in accounts payable.
D) Show a $19,000 negative adjustment to net income under the indirect method for the decrease in accounts payable.

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

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What was most responsible for the positive cash flow from financing activities during 2012? What amount was received?

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Proceeds from issuan...

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Moon Company owns 56 million shares of stock of Center Company classified as available for sale. During 2013, the fair value of those shares increased by $34 million. What effect did this increase have on Moon's 2013 statement of cash flows?


A) Cash from operating activities increased.
B) Cash from investing activities increased.
C) Cash from financing activities increased.
D) No effect.

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

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Hanson Company had the following account balances for 2013: Hanson Company had the following account balances for 2013: Hanson reported net income of $90,000 for 2013. Assuming no other changes in current account balances, what is the amount of net cash provided by operating activities for 2013 reported in the statement of cash flows? A) $70,000. B) $80,000. C) $100,000. D) $110,000. Hanson reported net income of $90,000 for 2013. Assuming no other changes in current account balances, what is the amount of net cash provided by operating activities for 2013 reported in the statement of cash flows?


A) $70,000.
B) $80,000.
C) $100,000.
D) $110,000.

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

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Goodfellow Corporation reported insurance expense of $477 for the current year. The beginning and ending balances in the prepaid insurance account were $50 and $30, respectively. What was the amount of cash paid for insurance?


A) $477.
B) $457.
C) $497.
D) None of the above is correct.

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

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