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Swinger Corporation's comparative balance sheet appears below: Swinger Corporation's comparative balance sheet appears below: The company did not dispose of any property, plant, and equipment during the year.Its net income for the year was $10,000.The net cash provided by (used in) operating activities is: A) $32,000 B) $36,000 C) $34,000 D) $28,000 The company did not dispose of any property, plant, and equipment during the year.Its net income for the year was $10,000.The net cash provided by (used in) operating activities is:


A) $32,000
B) $36,000
C) $34,000
D) $28,000

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

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Mattix Corporation's balance sheet and income statement appear below: Mattix Corporation's balance sheet and income statement appear below: The company sold equipment for $20 that was originally purchased for $7 and that had accumulated depreciation of $1.It paid a cash dividend during the year and did not issue any bonds payable or repurchase any of its own common stock. Required: Determine the net cash provided by (used in)operating activities for the year using the indirect method. Mattix Corporation's balance sheet and income statement appear below: The company sold equipment for $20 that was originally purchased for $7 and that had accumulated depreciation of $1.It paid a cash dividend during the year and did not issue any bonds payable or repurchase any of its own common stock. Required: Determine the net cash provided by (used in)operating activities for the year using the indirect method. The company sold equipment for $20 that was originally purchased for $7 and that had accumulated depreciation of $1.It paid a cash dividend during the year and did not issue any bonds payable or repurchase any of its own common stock. Required: Determine the net cash provided by (used in)operating activities for the year using the indirect method.

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The statement of cash flows relies on a fundamental principle of double-entry bookkeeping; namely, the change in the cash balance must equal the change in total liabilities and stockholders' equity.

A) True
B) False

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Alden Corporation's most recent comparative Balance Sheet is as follows: Alden Corporation's most recent comparative Balance Sheet is as follows: Alden's net income was $34,000.No equipment was purchased and no long-term investments were sold.There was a gain of $3,000 when equipment was sold.The accumulated depreciation on the equipment that was sold was $12,000.Cash dividends of $20,000 were declared and paid during the year. Required: Prepare Alden's statement of cash flows using the indirect method. Alden's net income was $34,000.No equipment was purchased and no long-term investments were sold.There was a gain of $3,000 when equipment was sold.The accumulated depreciation on the equipment that was sold was $12,000.Cash dividends of $20,000 were declared and paid during the year. Required: Prepare Alden's statement of cash flows using the indirect method.

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blured image_TB2627_00 * Net book value of equipment...

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The net cash provided by (used in) operating activities for the year was:


A) $51
B) $69
C) $9
D) $86

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

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The net cash provided by (used in) financing activities for the year was:


A) $(9)
B) $(15)
C) $(21)
D) $3

E) A) and B)
F) None of the above

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What is Stone's net cash provided by (used in) operating activities?


A) $(18,000)
B) $(33,000)
C) $69,000
D) $84,000

E) A) and B)
F) None of the above

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The net cash provided by (used in) financing activities for the year was:


A) $10
B) $5
C) $(12)
D) $17

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

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Kaze Corporation's cash and cash equivalents consist of cash and marketable securities.Last year the company's cash account increased by $25,000 and its marketable securities account decreased by $15,000.Net cash provided by (used in) operating activities was $38,000.Net cash provided by (used in) investing activities was $9,000.Based on this information, the net cash provided by (used in) financing activities on the statement of cash flows was:


A) $(37,000) .
B) $37,000 .
C) $(47,000) .
D) $47,000 .

E) B) and C)
F) All of the above

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Based solely on the information above, the net cash provided by (used in) financing activities on the statement of cash flows would be:


A) $(70,000)
B) $70,000
C) $(130,000)
D) $130,000

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

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Beacham Corporation's net cash provided by operating activities was $115; its net income was $95; its capital expenditures were $65; and its cash dividends were $17.The company's free cash flow was:


A) $292
B) $13
C) $33
D) $128

E) A) and D)
F) A) and C)

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Buying property, plant, or equipment would be reported as a cash outflow on the investing activities section of the statement of cash flows.

A) True
B) False

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Furis Corporation's cash and cash equivalents consist of cash and marketable securities.Last year the company's cash account decreased by $12,000 and its marketable securities account increased by $19,000.Net cash provided by (used in) operating activities was $18,000.Net cash provided by (used in) financing activities was $(12,000) .Based on this information, the net cash provided by (used in) investing activities on the statement of cash flows was:


A) $(12,000)
B) $1,000
C) $(6,000)
D) $6,00

E) B) and C)
F) None of the above

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Manila Corporation's comparative balance sheet appears below: Manila Corporation's comparative balance sheet appears below: The company's net income (loss)for the year was $0 and its cash dividends were $2,000.It did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. Required: Compute the change in each balance sheet account denoted with an asterisk (*).Indicate whether the change in each balance will be recorded in the operating, investing, or financing activities section of the statement of cash flows.For items recorded in the operating activities section, also indicate whether the change will be added to or subtracted from net income.For all other items, indicate whether the change will be added as a cash inflow or subtracted as a cash outflow.The first entry has been filled in as an example. The company's net income (loss)for the year was $0 and its cash dividends were $2,000.It did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. Required: Compute the change in each balance sheet account denoted with an asterisk (*).Indicate whether the change in each balance will be recorded in the operating, investing, or financing activities section of the statement of cash flows.For items recorded in the operating activities section, also indicate whether the change will be added to or subtracted from net income.For all other items, indicate whether the change will be added as a cash inflow or subtracted as a cash outflow.The first entry has been filled in as an example. Manila Corporation's comparative balance sheet appears below: The company's net income (loss)for the year was $0 and its cash dividends were $2,000.It did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. Required: Compute the change in each balance sheet account denoted with an asterisk (*).Indicate whether the change in each balance will be recorded in the operating, investing, or financing activities section of the statement of cash flows.For items recorded in the operating activities section, also indicate whether the change will be added to or subtracted from net income.For all other items, indicate whether the change will be added as a cash inflow or subtracted as a cash outflow.The first entry has been filled in as an example.

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Clayborn Corporation's net cash provided by operating activities was $111,000; its net income was $101,000; its income taxes were $43,000; its capital expenditures were $90,000; and its cash dividends were $28,000. Required: Determine the company's free cash flow.

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Free cash flow = Net cash prov...

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When computing the net cash provided by operating activities under the indirect method on the statement of cash flows, an increase in prepaid expenses would be added to net income.

A) True
B) False

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In a statement of cash flows, which of the following would be classified as an investing activity?


A) The sale of the company's own common stock for cash.
B) The sale of equipment.
C) Interest paid to a lender.
D) The issuance of bonds payable.

E) All of the above
F) None of the above

Correct Answer

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Morbeck Corporation's net income last year was $56,000.The company paid a cash dividend of $31,000 and did not sell or retire any property, plant, and equipment last year.Changes in selected balance sheet accounts for the year appear below: Morbeck Corporation's net income last year was $56,000.The company paid a cash dividend of $31,000 and did not sell or retire any property, plant, and equipment last year.Changes in selected balance sheet accounts for the year appear below: Based solely on this information, the net cash provided by (used in) operating activities under the indirect method on the statement of cash flows would be: A) $83,000 B) $102,000 C) $29,000 D) $79,000 Based solely on this information, the net cash provided by (used in) operating activities under the indirect method on the statement of cash flows would be:


A) $83,000
B) $102,000
C) $29,000
D) $79,000

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

Correct Answer

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Which of the following would be considered a cash inflow in the financing activities section of the statement of cash flows?


A) Issuing bonds payable.
B) Receiving cash from customers.
C) Sale of equipment.
D) Collection of a loan made to another company.

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

Correct Answer

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Which of the following would be classified as a financing activity on the statement of cash flows?


A) Paying suppliers for inventory purchases.
B) Interest paid to lenders.
C) Lending money to another company.
D) Repurchasing capital stock from owners.

E) All of the above
F) None of the above

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