A2 Chapter 14: Statement of Cash Flows

Refer to Figure 6.01-A What is the net change in cash?

• $28,000 increase

• $17,000 increase

• $17,000 decrease

• $28,000 decrease

Refer to Figure 6.01-B Using the information provided, what is the amount of increase or decrease for Supplies?

• $5,300 increase

• $5,300 decrease

• $1,700 increase

• $1,700 decrease

Refer to Figure 6.01-C. Based on the information provided, what is the net income for the current year to be entered on the Statement of Cash Flows?

• $65,000

• $172,000

• $197,000

• $222,000

Refer to Figure 6.01-B. Using the information provided, what is the amount of increase or decrease for Merchandise Inventory?

• $375,000 increase

• $375,000 decrease

• $125,000 increase

• $125,000 decrease

Refer to Figure 6.01-D. What is the cash provided by financing activities?

• $24,000

• $36,000

• $60,000

• $96,000

Refer to Figure 6.01-E. Based on the information provided, what is the net change in cash?

• $16,000 increase

• $16,000 decrease

• $14,000 increase

• $14,000 decrease

Refer to Figure 6.01-C. Based on the information provided, what is the depreciation expense that would be entered on the Statement of Cash Flows? (This amount would be added to the Net Income amount on the Statement of Cash Flows.)

• $7,000

• $25,000

• $32,000

• $53,000

Refer to Figure 6.01-F. What is the amount of cash provided by financing activities?

• $51,400

• $30,000

• $25,000

• $8,600

Sweets 4 U Corporation is preparing its end-of-year statements for December 31, 20XX. What is the correct heading for the Statement of Cash Flows?

• Sweets 4 U Corporation

  Statement of Cash Flows

  For the Year Ended December 21, 20XX

• Sweets 4 U Corporation

  December 20XX

  Statement of Cash Flows

• Sweets 4 U Corporation

  For Year Ended December 31, 20XX

  Statement of Cash Flows

• Sweets 4 U Corporation

  Comparative Cash Flows

  December 21, 20XX

Simply Safe Alarm Company had an accounts receivable balance in 20X1 of 32,000 and in 20X2 of 30,000. What effect does this have on their cash flow?

• This makes no difference on Simply Safe’s Cash Flow
• This makes minimal difference on Simply Save’s Cash Flow
• This increased Simply Safe’s Cash flow by $2,000
• This decreased Simply Safe’s Cash flow by $2,000