Recent Question

During the year, Salaries Payable decreased 1. Squeeze Company reports the following: End of Year Beginning of Year Inventory $25,000 $42,000 Accounts Payable 22,000 12,000 If cost of goods sold for the year is $220,000, the amount of cash paid to suppliers is a. $227,000. b. $205,000. c. $193,000. d. $247,000. 2. During the year, Salaries Payable decreased by $5,000. If Salary Expense amounted to $174,000 for the year, t ...

Other / Other 08 Apr 2016

The sale of land for cash would be classified as a cash inflow True or false: 1. The sale of land for cash would be classified as a cash inflow from an investing activity. 2. Cash flow from investing activities is considered the most important category on the statement of cash flows because it is considered the best measure of expected income. 3. The receipt of dividends from long-term investments in stock is classified as a cash i ...

Other / Other 08 Apr 2016

The statement of cash flows should help investors and creditors 1. The statement of cash flows should help investors and creditors assess each of the following except the a. entity's ability to generate future income. b. entity's ability to pay dividends. c. reasons for the difference between net income and net cash provided by operating activities. d. cash investing and financing transactions during the period. 2. The statement ...

Other / Other 08 Apr 2016

In calculating net cash provided by operating activities 1. Pare Company reported a net loss of $30,000 for the year ended December 31, 2014. During the year, accounts receivable decreased $15,000, merchandise inventory increased $25,000, accounts payable increased by $30,000, and depreciation expense of $20,000 was recorded. During 2014, operating activities a. used net cash of $10,000. b. used net cash of $25,000. c. provided net cas ...

Other / Other 08 Apr 2016

Free cash flow equals cash provided 1. When equipment is sold for cash, the amount received is reflected as a cash a. inflow in the operating section. b. inflow in the financing section. c. inflow in the investing section. d. outflow in the operating section. 2. The statement of cash flows will not provide insight into a. why dividends were not increased. b. whether cash flow is greater than net income. c. the exact proceeds of ...

Other / Other 08 Apr 2016

Indicate where the issuance of common stock issued 1. Indicate where the payment of income taxes would appear, if at all, on the statement of cash flows. a. Operating activities section b. Investing activities section c. Financing activities section d. Does not represent a cash flow 2. Indicate where the issuance of common stock issued for cash would appear, if at all, on the indirect statement of cash flows. a. Operating activ ...

Other / Other 08 Apr 2016

Which of the following would not be an adjustment 1. Each of the following is added to net income in computing net cash provided by operating activities except a. amortization expense. b. an increase in accrued expenses payable. c. a gain on sale of equipment. d. a decrease in inventory. 2. Which of the following would be subtracted from net income using the indirect method? a. Depreciation expense b. An increase in accounts ...

Other / Other 08 Apr 2016

Adama Company reported a net loss 1. Accounts receivable arising from sales to customers amounted to $40,000 and $55,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $180,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is a. $180,000. b. $195,000. c. $220,000. d. $165,000. 2. Bu ...

Other / Other 08 Apr 2016

The information in a statement of cash flows 1. Which of the following steps is not required in preparing the statement of cash flows? a. Determine the net change in cash. b. Determine the net cash provided by operating activities. c. Determine cash from investing and financing activities. d. Determine the change in current assets. 2. Financing activities involve a. lending money to other entities and collecting on those loans. ...

Other / Other 08 Apr 2016

Madisun Company issued common stock for proceeds 1 During 2014, Blaine Company sold a building with a book value of $145,000 for proceeds of $175,000. The company also sold long-term investments for proceeds of $32,000. The company purchased land and a new building for $320,000 by signing a long-term note payable. No other transactions impacted long-term asset accounts during 2014. Instructions Compute net cash flows from investing ...

Other / Other 08 Apr 2016