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Exam 15: Statement of Cash Flows

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Question 21

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Crossland Corporation reported sales on its income statement of $455,000. On the statement of cash flows, which used the direct method, sales adjusted to a cash basis were $485,000. Crossland Corporation reported the following account balances on its balance sheet for the year: Based on this information, the beginning balance in accounts receivable was:

A) $70,000
B) $60,000
C) $40,000
D) $30,000

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

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Question 22

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Reven Corporation prepares its statement of cash flows using the direct method. Last year, Reven reported Income Tax Expense of $25,000. At the beginning of last year, Reven had a $5,000 balance in the Income Taxes Payable account. At the end of last year, Reven had a $9,000 balance in the account. On its statement of cash flows for last year, what amount should Reven have shown for its Income Tax Expense adjusted to a cash basis (i.e., income taxes paid) ?

A) $29,000
B) $21,000
C) $25,000
D) $4,000

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

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Question 23

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Kilduff Corporation's balance sheet and income statement appear below: The company sold equipment for $19 that was originally purchased for $10 and that had accumulated depreciation of $5. The company paid a cash dividend of $44 and it did not issue any bonds payable or repurchase any of its own common stock.The net cash provided by (used in) operating activities for the year was:

Buckley Corporation's most recent comparative balance sheet appears below: The company's net income for the year was $91 and it paid a cash dividend of $22. It did not dispose of any property, plant, and equipment during the year. The company did not retire any bonds payable or repurchase any of its own common stock.The net cash provided by (used in) financing activities for the year was:

Krech Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities.The company's net cash provided by (used in) operating activities is: Garrison 16e Rechecks 2017-11-18

Birchett Corporation's most recent balance sheet appears below: The company's net income for the year was $91 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $22. The net cash provided by (used in) operating activities for the year was:

Last year Cumberland Corporation reported a cost of goods sold of $92,000. Inventories increased by $52,000 during the year, and accounts payable increased by $11,000. The company uses the direct method to determine the net cash provided by (used in) operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be:

Buckley Corporation's most recent comparative balance sheet appears below: The company's net income for the year was $91 and it paid a cash dividend of $22. It did not dispose of any property, plant, and equipment during the year. The company did not retire any bonds payable or repurchase any of its own common stock.The free cash flow for the year was:

Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, an increase in accounts receivable would be subtracted from net income.

The data given below are from the accounting records of the Kuhn Corporation: Based on this information, the net cash provided by (used in) operating activities using the indirect method would be:

Evita Corporation prepares its statement of cash flows using the indirect method. Evita's statement showed "Net cash provided by (used in) operating activities" of $46,000. Under the direct method, this number would have been:

Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, an increase in property, plant, and equipment is subtracted from net income.

Last year Burch Corporation's cash account decreased by $31,000. Net cash provided by (used in) investing activities was $8,600. Net cash provided by (used in) financing activities was $(29,000) . On the statement of cash flows, the net cash provided by (used in) operating activities was:

Free cash flow will increase if a company increases its accounts payable balance by delaying payments to suppliers.

Carr Corporation's comparative balance sheet and income statement for last year appear below: The company declared and paid $47,000 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year.Required:Construct in good form the operating activities section of the company's statement of cash flows for the year using the direct method.

When computing the net cash provided by operating activities using the indirect method on the statement of cash flows, which item below would NOT be added to net income?

The changes in each balance sheet account for Carver Corporation during the year just completed are as follows: Carver Corporation's income statement for the year just ended shows the following: The company did not dispose of any property, plant, and equipment, buy any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. Carver Corporation uses the direct method to construct its statement of cash flows. Required:a. Determine the sales adjusted to the cash basis.b. Determine the cost of goods sold adjusted to the cash basis.c. Determine the selling and administrative expenses adjusted to a cash basis.d. Determine the net cash provided by (used in) operating activities. (Negative amounts should be indicated by a minus sign.)e. Determine the net cash provided by (used in) investing activities. (Negative amounts should be indicated by a minus sign.)f. Determine the net cash provided by (used in) financing activities. (Negative amounts should be indicated by a minus sign.)

The changes in Northrup Corporation's balance sheet account balances for last year appear below: The company's income statement for the year appears below: The company declared and paid $18,000 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.On the statement of cash flows, the sales adjusted to a cash basis would be:

Financial statements of Rukavina Corporation follow: Cash dividends were $24. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) investing activities for the year was:

Cash equivalents on the statement of cash flows consist of any investment that can be converted into cash within one year.