The primary purpose of the statement of cash flows is to provide information.
about a company's cash receipts and cash payments during an accounting period.
Elkwood Corporation acquired a land site with a building by issuing a 30-year mortgage payable. In Elkwood's statement of cash flows, this transaction should be shown
in the schedule of noncash investing and financing transactions
what section would the following transaction appear in or relate to, if any, on a statement of cash flows
Declared and issued a stock dividend.
does not represent a cash flow.
what section would the following transaction appear in or relate to, if any, on a statement of cash flows
Retired long-term debt with cash.
financing activities section
what section would the following transaction appear in or relate to, if any, on a statement of cash flows
Sold long-term investment.
Investing activities section
what section would the following transaction appear in or relate to, if any, on a statement of cash flows
Issued stock for equipment.
Schedule of noncash investing and financing transactions
what section would the following transaction appear in or relate to, if any, on a statement of cash flows
Converted loans payable to stock.
Schedule of noncash investing and financing transactions
The calculation of free cash flow could include all of the following except
net income.
If the indirect method is used to prepare a statement of cash flows, which of the following would be deducted from net income to arrive at net cash flows from operating activities?
increase in accounts receivable
what section would the following transaction appear in or relate to, if any, on a statement of cash flows
Issued common stock for cash
financing activities section
If the indirect method is used to prepare a statement of cash flows, which of the following would be added to net income to arrive at net cash flows from operating activities?
decrease in prepaid expenses
assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements-Increase in A/R- indicate the effect on net income in arriving at net cash flows from operating activities by cho
add to net income to arrive at net cash flows from operating activities
assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements-Increase in inventory- indicate the effect on net income in arriving at net cash flows from operating activities
subtract from net income to arrive at net cash flows from operating activities
assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements-decrease in prepaid expenses- indicate the effect on net income in arriving at net cash flows from operating acti
add to net income to arrive at net cash flows from operating activities
assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements-decrease in accounts payable- indicate the effect on net income in arriving at net cash flows from operating acti
subtract from net income to arrive at net cash flows from operating activities
assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements-increase in accrued liabilities- indicate the effect on net income in arriving at net cash flows from operating a
add to net income to arrive at net cash flows from operating activities
In preparing a statement of cash flows using the indirect method, an increase in an unearned revenue account should
be shown as an addition to net income in computing net cash flows from operating activities.
When a statement of cash flows is prepared using the indirect method,
net income is the starting point in determining cash flows from operations
Analysis of the financing activities section of the statement of cash flows will disclose
any sales or repurchases of stock.
To determine whether a company's operations are covering its dividend payments, it is best to focus on which of the following sections of the statement of cash flows?
operating activities