Chapter 13 - Cash Flows

Front

An asset with an original cost of $60,000 and accumulated depreciation of $15,000 was sold at a gain of $5,000. What is the amount of cash received?

Back

$50,000

Front

A piece of equipment with a book value of $40,000 is sold for $50,000 cash. Using the indirect method, how should this transaction be shown on the statement of cash flows?

Back

an increase of $50,000 from investing activities and a deduction from net income of $10,000

Front

Which of the following would be classified under cash flows from investing activities on the statement of cash flows? proceeds from issuing bonds, cash paid for purchasing equipment, cash received from customers, cash paid for interest on loans

Back

cash paid for purchasing equipment

Front

Calculate the net cash flow from operating activities using the indirect method given the following information: Net income $200,000 Depreciation expense 35,000 Increase in inventory 18,000 Increase in accrued liabilities 12,000

Back

$229,000

Front

What is the cash flow from operating activities to be reported on the statement of cash flows using the indirect method if inventory was valued at $30,000 at the beginning of the year and $45,000 at the end of the year, with a net income of $120,000?

Back

$105,000

Front

When using the indirect method to calculate net cash flows from operating activities, which of the following should be subtracted from net income? an increase in accounts receivable, a decrease in inventory, an increase in accounts payable, a decrease in accrued liabilities

Back

an increase in accounts receivable

Front

Which of the following transactions would result in an increase in cash flow?
payment of accounts payable,
purchase of equipment for cash,
issuing common stock for cash,
repayment of a bank loan

Back

issuing common stock for cash

Front

When using the indirect method to calculate net cash flows from operating activities, which of the following should be subtracted from net income?
amortization expense,
gain on sale of equipment,
increase in accounts payable,
interest received

Back

gain on sale of equipment

Front

Which of the following is considered a financing activity? purchasing inventory, paying dividends, issuing equity, selling goods

Back

issuing equity

Front

A business sells a piece of machinery for $15,000 cash. This transaction should be recorded on the statement of cash flows under:

Back

investing activities