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Statement of Cash Flow items

2. The net income reported on the income statement for the current year is $50000. Depreciation recorded on fixed assets and amortization of bond discount for the year were $30000 and $1000 respectively. What is the amt of cash flows from operating activities that would appear on the statement of cash flows using the indirect method?
a 81000
b 19000
c 49000
d 80000

3. Cash flow per share is
a not required to be reported on any statement
b required to be reported on the statement of cash flows
c required to be reported on the income statement
d required to be reported on the balance sheet

4. Cash paid to purchase long-term investments would be reported on the statement of cash flows in
a operating activies
b financing activiees
c investing activies
d a seperate schedule

5. on the statement of cash flows, the cash flows from financing activities section would include
a receipts from the sale of investments
b receipts from the issuance of capital stock
c payments for the acquitions of investments
d receipts from gain on sale of investments

6. Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in
a financing activities
b investing activities
c a seperate schedule
d operating activities

7. Which of the following does not represent an outflow of cash and therefore would not be reported on the statement of cash flows as a use of cash?
a purchase of treasure stock
b purchase of noncurrent assets
c discarding an asset that had been fully depreciated
d payments of cash dividends

8. Cash flows from investing activities as part of the statment of cash flows includes cash transactions that enter into the determination of net income
True or False

12. The net income reported on the income statement for the current year is $90000. Depreciation recorded on fixed assets and amortization of bond discount for the year were $12000 and $3000 respectively. What is the amt of cash flows from operating activities that would appear on the statement of cash flows using the indirect method?
a 90000
b 93000
c 75000
d 105000

14. Which of the following represents an inflow of cash and would be reported on the statement of cash flows?
a issuance of long term dept
b acquistion of treasury stock
c declaration of stock dividends
d appropriation of retained earnings

16. AR from trade transactions amounted to $35000 and $40000 at the begining and end of the year. Income reported on the income statement for the year was $120000. Exclusive of the effect of other adjustments, the cash flows from operating activities using the indirect method is
a 120000
b 125000
c 115000
d 155000

17. On the statement of cash flows, the cash flows from financing activities section would include
a receipts from the sale of investments
b payments for the acquisition of investments
c payments for the acquistions of fixed assets
d receipts from the issuance of bond payable

18. Cash flows from operating activities as reported on the statment of cash flows using the indirect method would include
a net income
b payments for dividends
c receipts from sale of investments
d receipts from the issuance of capital stock

20. The last item on the statement of cash flows prior to the schedule of noncash investing & financing activities reports
a increase or decrease in cash
b cash at the end of the year
c net cash flow from investing
d net cash from financing

24. Which of the following types of transactions would be reported as a cash flow from investing activity on the statment
a issuance of bonds payable
b issuance of capital stock
c purchase of treasury stock
d purchase of noncurrent assets

25. On the statement of cash flows prepared by the indirect method, the cash flows from operating activities would include
a receipts from the sale of invesments
b amoritzation of the intangile assents
c payments for cash dividends
d receipts from the issuance of capital stock

28. On the statement of cash flows, a $20000 gain on the sale of fixed assets would be
a added to net income in converting net income reported on the income statement to cash flows from operating activities
b deducted from net income in converting the net income reportted on the income statement to cash flows from operating activities
c added to dividends declared in converting the dividends to the cash flows from financing activities related to dividends
d deducted from dividends declared in converting the dividends to the cash flows from financing activities related to dividends

29. On the statement of cash flows, the cash flows from investing activities would include
a receipts from the issuance of capital stock
b payment for dividends
c payments for retirement of bonds payable
d receipts from the sale of investments

30. If a loss of $12500 is incurred in selling for cash office equipment having a book value of $50000, the total amt reported in the cash flow from investing activities would be
a 50000
b 37500
c 62500
d 12500

Solution Preview

The net income reported on the income statement for the current year is $50000. Depreciation recorded on fixed assets and amortization of bond discount for the year was $30000 and $1000 respectively. What is the amt of cash flows from operating activities that would appear on the statement of cash flows using the indirect method?
a 81000
b 19000
c 49000
d 80000
=Net Income+Depreciation+Amortization
=50000+30000+1000
=$81000
Hence A is the answer

3. Cash flow per share is
a not required to be reported on any statement
b required to be reported on the statement of cash flows
c required to be reported on the income statement
d required to be reported on the balance sheet

a not required to be reported on any statement

4. Cash paid to purchase long-term investments would be reported on the statement of cash flows in
a operating activities
b financing activities
c investing activities
d a separate schedule

c investing activities

5. on the statement of cash flows, the cash flows from financing activities section would include
a receipts from the sale of investments
b receipts from the issuance of capital stock
c payments for the acquisitions of investments
d receipts from gain on sale of investments

b receipts from the issuance of capital stock

6. Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in
a financing activities
b investing activities
c a separate ...

Solution Summary

Response discusses the Statement of Cash Flow items

$2.19