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Tomlin Corporation prepares its statement of cash flows using the indirect method.Which of the following would be subtracted from net income in the operating activities section of the statement? Tomlin Corporation prepares its statement of cash flows using the indirect method.Which of the following would be subtracted from net income in the operating activities section of the statement?

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Carriveau Corporation's most recent balance sheet appears below: Carriveau Corporation's most recent balance sheet appears below: Net income for the year was $172.Cash dividends were $35.The company did not sell or retire any property, plant, and equipment during the year.The net cash provided by (used in) operating activities for the year was: A) $183 B) $246 C) $(11) D) $161 Net income for the year was $172.Cash dividends were $35.The company did not sell or retire any property, plant, and equipment during the year.The net cash provided by (used in) operating activities for the year was:


A) $183
B) $246
C) $(11)
D) $161

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

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


A) $0
B) $(15,000)
C) $25,000
D) $45,000

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

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The amount of depreciation added to net income equals the sum of the debits to the Accumulated Depreciation account.

A) True
B) False

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Which of the following items would not be classified as an operating activity on the statement of cash flows?


A) Cash received from customers.
B) Dividends paid to the company's own stockholders.
C) Payments to government agencies for taxes.
D) Cash paid to compensate employees.

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

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Kaeser Corporation's most recent balance sheet appears below: Kaeser Corporation's most recent balance sheet appears below: The company's net income for the year was $52 and it did not sell or retire any property, plant, and equipment during the year.Cash dividends were $9.The net cash provided by (used in) investing activities for the year was: A) $17 B) $67 C) ($17) D) ($67) The company's net income for the year was $52 and it did not sell or retire any property, plant, and equipment during the year.Cash dividends were $9.The net cash provided by (used in) investing activities for the year was:


A) $17
B) $67
C) ($17)
D) ($67)

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

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Negative free cash flow suggests that the company generated enough cash flow from its operating activities to fund its capital expenditures and dividend payments.

A) True
B) False

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The free cash flow for the year was:


A) $(8)
B) $14
C) $128
D) $308

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

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Last year Burch Corporation's cash account decreased by $6,000.Net cash provided by (used in) investing activities was $13,000.Net cash provided by (used in) financing activities was $(30,000) .On the statement of cash flows, the net cash provided by (used in) operating activities was:


A) $(23,000)
B) $(17,000)
C) $(6,000)
D) $11,000

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

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The collection of a loan made to a supplier would be treated as an investing activity on a statement of cash flows.

A) True
B) False

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The following transactions occurred last year at Jolly Corporation: The following transactions occurred last year at Jolly Corporation: Based solely on the above information, the net cash provided by (used in) financing activities for the year on the statement of cash flows would be: A) $179,000 B) $59,000 C) $(109,000) D) $46,000 Based solely on the above information, the net cash provided by (used in) financing activities for the year on the statement of cash flows would be:


A) $179,000
B) $59,000
C) $(109,000)
D) $46,000

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

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In the statement of cash flows, collecting cash from customers is treated as a cash inflow in the financing activities section.

A) True
B) False

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Paying wages and salaries to employees is classified as a cash outflow in the operating activities section of the statement of cash flows.

A) True
B) False

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


A) $26
B) $15
C) $(26)
D) $(15)

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

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NOTE TO THE INSTRUCTOR: The problem requirement does not indicate whether the indirect or direct method must be used to determine the net cash provided by operating activities.You can, if you choose, specify that either (or even both)methods be used.The solution contains solutions for both methods. --------------------------------------------------------------------- Dauber Corporation's comparative balance sheet and income statement for last year appear below: NOTE TO THE INSTRUCTOR: The problem requirement does not indicate whether the indirect or direct method must be used to determine the net cash provided by operating activities.You can, if you choose, specify that either (or even both)methods be used.The solution contains solutions for both methods. --------------------------------------------------------------------- Dauber Corporation's comparative balance sheet and income statement for last year appear below: The company declared and paid a cash dividend of $55,000 during the year.It did not sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock. Required: a.Construct in good form the operating activities section of the company's statement of cash flows for the year. b.Construct in good form the investing activities section of the company's statement of cash flows for the year. c.Construct in good form the financing activities section of the company's statement of cash flows for the year. NOTE TO THE INSTRUCTOR: The problem requirement does not indicate whether the indirect or direct method must be used to determine the net cash provided by operating activities.You can, if you choose, specify that either (or even both)methods be used.The solution contains solutions for both methods. --------------------------------------------------------------------- Dauber Corporation's comparative balance sheet and income statement for last year appear below: The company declared and paid a cash dividend of $55,000 during the year.It did not sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock. Required: a.Construct in good form the operating activities section of the company's statement of cash flows for the year. b.Construct in good form the investing activities section of the company's statement of cash flows for the year. c.Construct in good form the financing activities section of the company's statement of cash flows for the year. The company declared and paid a cash dividend of $55,000 during the year.It did not sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock. Required: a.Construct in good form the operating activities section of the company's statement of cash flows for the year. b.Construct in good form the investing activities section of the company's statement of cash flows for the year. c.Construct in good form the financing activities section of the company's statement of cash flows for the year.

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a.Operating activities
INDIREC...

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Free cash flow is net cash provided by operating activities less capital expenditures.

A) True
B) False

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Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, an increase in property, plant, and equipment is subtracted from net income.

A) True
B) False

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


A) $(280,000)
B) $(390,000)
C) $(760,000)
D) $(1,286,000)

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

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The company's net cash provided by (used in) investing activities is:


A) $(6,000)
B) $(54,000)
C) $(24,000)
D) $(44,000)

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

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Which of the following is correct regarding the operating activities section of the statement of cash flows?


A) The change in Prepaid Expenses will be added to net income; The change in Income Taxes Payable will be subtracted from net income
B) The change in Prepaid Expenses will be subtracted from net income; The change in Income Taxes Payable will be subtracted from net income
C) The change in Prepaid Expenses will be subtracted from net income; The change in Income Taxes Payable will be added to net income
D) The change in Prepaid Expenses will be added to net income; The change in Income Taxes Payable will be added to net income

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

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