FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: Reporting and Analyzing Cash Flows

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

Essay

Review LaterAdd Note

Review Later

A corporation reported average total assets in Year 1 of $397,350 and $440,800 in Year 2.Its net operating cash flow for Year 1 was $35,667 and $35,790 for Year 2.Calculate the cash flow on total assets ratio for both years.Comment on the results.

Correct Answer

verified

Show Answer

Question 82

Multiple Choice

Review LaterAdd Note

Review Later

Use the following information to calculate cash paid for salaries:

A) $175,000.
B) $183,000.
C) $167,000.
D) $143,000.
E) $155,000.

F) C) and E)
G) A) and C)

Correct Answer

verified

Show Answer

Question 83

Essay

Review LaterAdd Note

Noncash financing and investing activities are disclosed in a ________ or in a separate ________.

When preparing the operating activities section of the statement of cash flows using the indirect method,non-operating losses are subtracted from net income.

A company reported average total assets of $501,000 in Year 1 and $611,000 in Year 2.Its net operating cash flow in Year 1 was $41,500 and $55,250 in Year 2.Calculate its cash flow on total assets ratio for both years.Comment on the results.

The appropriate section in the statement of cash flows for reporting the cash payment of wages is:

The accounting principle that requires important noncash financing and investing activities be reported on the statement of cash flows or in a footnote is the:

The cash flow on total assets ratio compared to the total assets ratio can be used as an indicator of earnings quality.

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

The purchase of stock in another company is classified as a financing activity.

Of the following,which one affects cash during a period?

The cash flow on total assets ratio reflects actual cash flows and is therefore affected by income recognition and measurement.

Typical cash flows from investing activities include each of the following except:

Cash flows from interest received on loans are reported in the statement of cash flows as part of:

The indirect method for the preparation of the operating activities section of the statement of cash flows:

The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period net income.

A purchase of land in exchange for shares of stock is disclosed at the bottom of the statement of cash flows or in a note to the statement.

A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

The cash flow on total assets ratio is computed by dividing average total assets by operating income.

The following information is available for the Brookstone Company: Additional information: (1)There was no gain or loss on the sales of the long-term investments,nor on the bonds retired. (2)Old machinery with an original cost of $45,060 was sold for $2,520 cash. (3)New machinery was purchased for $81,060 cash. (4)Cash dividends of $40,320 were paid. (5)Additional shares of stock were issued for cash. Prepare a complete statement of cash flows for calendar-year 20X2 using the indirect method.