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Exam 13: Statement of Cash Flows

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Question 41

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A ten-year bond was issued at par for $250,000 cash. This transaction should be shown on a statement of cash flows under

A) investing activities
B) financing activities
C) noncash investing and financing activities
D) operating activities

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

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Question 42

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Cash flows from investing activities, as part of the statement of cash flows, would include any receipts from the sale of land.

A) True
B) False

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Question 43

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On the basis of the details of the common stock account presented below, calculate the total amount to be recorded in financing section of the statement of cash flows. Assume any stock issues were at par.​ Indicate whether the amount results in an increase or decrease in cash.

Zenith Corporation sells some of its used store fixtures. The acquisition cost of the fixtures is $12,500, and the accumulated depreciation on these fixtures is $9,750 at the time of sale. The fixtures are sold for $5,300. The value of this transaction in the investing section of the statement of cash flows is

Land costing $71,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

If cash dividends of $135,000 were paid during the year and the company sold 1,000 shares of common stock at $30 per share, the statement of cash flows would report net cash flow from financing activities as $165,000.

Cash flows from investing activities, as part of the statement of cash flows, would include any payments for the purchase of treasury stock.

The manner of reporting cash flows from investing and financing activities will be different under the direct method as compared to the indirect method.

The board of directors declared cash dividends total $168,000 during the year. The comparative balance sheet indicated dividends payable of $46,000 at the beginning of the year and $42,000 at the end of the year. What was the amount of cash payments to stockholders during the year?

Dorman Company reported the following data: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Financing activities include

Under the indirect method, expenses that do not affect cash are added to net income in the operating activities section of the statement of cash flows.

On the statement of cash flows, the cash flows from operating activities section would include

State the section(s) of the statement of cash flows prepared by the indirect method (operating activities, investing activities, financing activities, or not reported) and the amount that would be reported for each of the following transactions:

Cash flows from investing activities, as part of the statement of cash flows, include payments for the acquisition of fixed assets.

Connor Designs Company has cash flows for operating activities of $425,000. Cash flows used for investments in property, plant, and equipment totaled $65,000, of which 70% of this investment was used to replace machinery to maintain its current operations.​ What is the free cash flow for Connor Designs?

Which of the following would not be found in a schedule of noncash investing and financing activities, reported at the end of a statement of cash flows?

Cash, as the term is used for the statement of cash flows, could indicate either cash or cash equivalents.

Identify the section of the statement of cash flows (a-d) where each of the following items would be reported.a.Operating activities b.Financing activities c.Investing activities d.Schedule of noncash financing and investing -Increase in income taxes payable

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows: Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.