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Exam 21: The Statement of Cash Flows

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Question 51

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A firm reported ($ in millions) net cash inflows (outflows) as follows: operating $75,investing ($200) ,and financing $350.The beginning cash balance was $250.What was the ending cash balance?

A) $875.
B) $ 25.
C) $475.
D) $125.

E) B) and C)
F) B) and D)

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Question 52

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Use the following to answer questions In its 2015 Annual Report to Shareholders,Henchman & Co.provided the following Statement of Cash Flows: -What was most responsible for the negative cash flow from financing activities during 2014? What amount was paid?

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Question 53

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Interest payments on debt are classified as cash outflows from financing activities.

Which one of the following financial statements does not report amounts primarily on an accrual basis?

If bond interest expense is $800,000,bond interest payable increased by $8,000 and bond discount decreased by $2,000,cash paid for bond interest is:

Listed below are reporting classifications for a statement of cash flows using the indirect method for reporting operating cash flows.Indicate the reporting classification that would apply to each of the five transactions described below by placing the letter of the reporting classification in the space provided by each transaction.

The Murdock Corporation reported the following balance sheet data for 2016 and 2015: Additional information for 2016: (1. )Sold available-for-sale securities costing $69,500 for $74,000. (2. )Equipment costing $20,000 with a book value of $5,000 was sold for $6,000. (3. )Issued 6% bonds payable at face value,$200,000. (4. )Purchased new equipment for $145,000 cash. (5. )Paid cash dividends of $20,000. (6. )Net income was $50,000. Required: Prepare a statement of cash flows for 2016 in good form using the indirect method for cash flows from operating activities.

Rampart Inc.recorded the following transaction: In the statement of cash flows,this would be reported as a:

All of the following may qualify as cash equivalents except:

Use the following to answer questions In its 2015 Annual Report to Shareholders,Henchman & Co.provided the following Statement of Cash Flows: -What was the net change in cash and cash equivalents experienced by Henchman & Co.during 2015? Was it positive or negative?

What activities are included in the statement of cash flows under the section titled "Cash flows from financing activities"?

Hanson Company had the following account balances for 2016: Hanson reported net income of $90,000 for 2016.Assuming no other changes in current account balances,what is the amount of net cash provided by operating activities for 2016 reported in the statement of cash flows?

In preparing its cash flow statement for the year ended December 31,2016,Red Co.gathered the following data: In its December 31,2016,statement of cash flows,what amount should Red report as net cash outflows from investing activities?

Interest payments and interest received must be reported as operating cash flows Using:

Use the following to answer questions In its 2015 Annual Report to Shareholders,Kinney Inc.reported the following Consolidated Statement of Cash Flows: For the years ended December 31, -Assuming the decrease in accrued expenses during fiscal year 2015 included a $20,000 reduction due to taxes,compute the income tax expense for Kinney in that year.

A statement of cash flows and its related disclosure note typically do not report:

The purchase of treasury stock is an investing cash outflow.

Use the following to answer questions In its 2015 Annual Report to Shareholders,Kinney Inc.reported the following Consolidated Statement of Cash Flows: For the years ended December 31, -Kinney reported cost of goods sold of $168,114,150 in its fiscal 2015 income statement.Assuming that Kinney uses accounts payable strictly for inventory purchases and that all such purchases are on credit,how much cash did Kinney pay during the year for inventories: (a)To inventory suppliers? (b)To employees?

Cash equivalents generally would not include short-term investments in:

During the year,cash increased by $300 million.Investing and financing activities created positive cash flow totaling $500 million.What were net cash flows from operating activities in the statement of cash flows?