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Walmouth Corporation's comparative balance sheet and income statement for last year appear below: Walmouth Corporation's comparative balance sheet and income statement for last year appear below: The company declared and paid a cash dividend of $54,000 during the year. It did not purchase or dispose of any property, plant, and equipment. It did not issue any bonds or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) operating activities last year was: A) $105,000 B) $58,000 C) $130,000 D) $152,000 Walmouth Corporation's comparative balance sheet and income statement for last year appear below: The company declared and paid a cash dividend of $54,000 during the year. It did not purchase or dispose of any property, plant, and equipment. It did not issue any bonds or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) operating activities last year was: A) $105,000 B) $58,000 C) $130,000 D) $152,000 The company declared and paid a cash dividend of $54,000 during the year. It did not purchase or dispose of any property, plant, and equipment. It did not issue any bonds or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) operating activities last year was:


A) $105,000
B) $58,000
C) $130,000
D) $152,000

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

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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 from...

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Partin Corporation's cash and cash equivalents consist of cash and marketable securities. Last year the company's cash account increased by $31,000 and its marketable securities account decreased by $22,000. Cash provided by operating activities was $108,000. Net cash used in financing activities was $70,000. Based on this information, the net cash flow from investing activities on the statement of cash flows was:


A) a net $9,000 increase.
B) a net $29,000 decrease.
C) a net $38,000 increase.
D) a net $38,000 decrease.

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

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Megan Corporation's net income last year was $98,000. Changes in the company's balance sheet accounts for the year appear below: Megan Corporation's net income last year was $98,000. Changes in the company's balance sheet accounts for the year appear below: The company paid a cash dividend of $36,000 and it did not dispose of any long-term investments or property, plant, and equipment. The company did not issue any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) investing activities last year was: A) $115,000 B) $(115,000) C) $135,000 D) $(135,000) The company paid a cash dividend of $36,000 and it did not dispose of any long-term investments or property, plant, and equipment. The company did not issue any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) investing activities last year was:


A) $115,000
B) $(115,000)
C) $135,000
D) $(135,000)

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

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Suggett Corporation's net cash provided by operating activities was $34; its income taxes were $12; its capital expenditures were $24; and its cash dividends were $7. The company's free cash flow was:


A) $(19)
B) $77
C) $3
D) $15

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

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Vandy Corporation's balance sheet and income statement appear below: Vandy Corporation's balance sheet and income statement appear below: The company sold equipment for $18 that was originally purchased for $14 and that had accumulated depreciation of $12. It paid a cash dividend of $28 during the year and did not retire any bonds payable or repurchase any of its own common stock. Required: Prepare a statement of cash flows for the year using the indirect method. Vandy Corporation's balance sheet and income statement appear below: The company sold equipment for $18 that was originally purchased for $14 and that had accumulated depreciation of $12. It paid a cash dividend of $28 during the year and did not retire any bonds payable or repurchase any of its own common stock. Required: Prepare a statement of cash flows for the year using the indirect method. The company sold equipment for $18 that was originally purchased for $14 and that had accumulated depreciation of $12. It paid a cash dividend of $28 during the year and did not retire any bonds payable or repurchase any of its own common stock. Required: Prepare a statement of cash flows for the year using the indirect method.

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Stone Retail Corporation's most recent comparative Balance Sheet is as follows: Stone Retail Corporation's most recent comparative Balance Sheet is as follows: Stone's net income was $46,000. No equipment was sold or purchased. Cash dividends of $40,000 were declared and paid. Stone uses the indirect method to prepare its statement of cash flows. -What is Stone's net cash provided (used) by operating activities? A) $(18,000) B) $(33,000) C) $69,000 D) $84,000 Stone's net income was $46,000. No equipment was sold or purchased. Cash dividends of $40,000 were declared and paid. Stone uses the indirect method to prepare its statement of cash flows. -What is Stone's net cash provided (used) by operating activities?


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

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

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The most recent comparative balance sheet of Giacomelli Corporation appears below: The most recent comparative balance sheet of Giacomelli Corporation appears below: The company uses the indirect method to construct the operating activities section of its statements of cash flows. -Which of the following is correct regarding the operating activities section of the statement of cash flows? A) The change in Accounts Receivable will be subtracted from net income; The change in Inventory will be added to net income B) The change in Accounts Receivable will be added to net income; The change in Inventory will be subtracted from net income C) The change in Accounts Receivable will be added to net income; The change in Inventory will be added to net income D) The change in Accounts Receivable will be subtracted from net income; The change in Inventory will be subtracted from net income The company uses the indirect method to construct the operating activities section of its statements of cash flows. -Which of the following is correct regarding the operating activities section of the statement of cash flows?


A) The change in Accounts Receivable will be subtracted from net income; The change in Inventory will be added to net income
B) The change in Accounts Receivable will be added to net income; The change in Inventory will be subtracted from net income
C) The change in Accounts Receivable will be added to net income; The change in Inventory will be added to net income
D) The change in Accounts Receivable will be subtracted from net income; The change in Inventory will be subtracted from net income

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

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The most recent balance sheet and income statement of Penaloza Corporation appear below: The most recent balance sheet and income statement of Penaloza Corporation appear below: The company paid a cash dividend of $18. It did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) investing activities for the year was: A) $72 B) $104 C) $(104) D) $(72) The most recent balance sheet and income statement of Penaloza Corporation appear below: The company paid a cash dividend of $18. It did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) investing activities for the year was: A) $72 B) $104 C) $(104) D) $(72) The company paid a cash dividend of $18. It did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) investing activities for the year was:


A) $72
B) $104
C) $(104)
D) $(72)

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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Adah 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? Adah 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? A) Option A B) Option B C) Option C D) Option D


A) Option A
B) Option B
C) Option C
D) Option D

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

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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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An increase in the Inventory account of a company from $10,000 at the beginning of the year to $15,000 at the end of the year would be shown on the company's statement of cash flows prepared under the indirect method as:


A) an addition to net income of $5,000 in order to arrive at net cash provided by operating activities.
B) a deduction from net income of $5,000 in order to arrive at net cash provided by operating activities.
C) an addition to net income of $15,000 in order to arrive at net cash provided by operating activities.
D) a deduction from net income of $10,000 in order to arrive at net cash provided by operating activities.

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

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The most recent comparative balance sheet of Giacomelli Corporation appears below: The most recent comparative balance sheet of Giacomelli Corporation appears below: The company uses the indirect method to construct the operating activities section of its statements of cash flows. -Which of the following is correct regarding the operating activities section of the statement of cash flows? A) The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be subtracted from net income B) The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be added to net income C) The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be subtracted from net income D) The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be added to net income The company uses the indirect method to construct the operating activities section of its statements of cash flows. -Which of the following is correct regarding the operating activities section of the statement of cash flows?


A) The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be subtracted from net income
B) The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be added to net income
C) The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be subtracted from net income
D) The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be added to net income

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

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Spackel Corporation recorded the following events last year: Spackel Corporation recorded the following events last year: On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities. -Based solely on the information above, the net cash provided by (used in) financing activities on the statement of cash flows would be: A) $(8,000) B) $(14,000) C) $104,000 D) $1,286,000 On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities. -Based solely on the information above, the net cash provided by (used in) financing activities on the statement of cash flows would be:


A) $(8,000)
B) $(14,000)
C) $104,000
D) $1,286,000

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

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Stone Retail Corporation's most recent comparative Balance Sheet is as follows: Stone Retail Corporation's most recent comparative Balance Sheet is as follows: Stone's net income was $46,000. No equipment was sold or purchased. Cash dividends of $40,000 were declared and paid. Stone uses the indirect method to prepare its statement of cash flows. -What is Stone's net cash provided by (used in) investing activities? A) $0 B) $(15,000) C) $25,000 D) $45,000 Stone's net income was $46,000. No equipment was sold or purchased. Cash dividends of $40,000 were declared and paid. Stone uses the indirect method to prepare its statement of cash flows. -What is Stone's net cash provided by (used in) investing activities?


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

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

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Klutz Dance Studio had net income of $167,000 for the year just ended. Klutz collected the following additional information to prepare its statement of cash flows for the year: Klutz Dance Studio had net income of $167,000 for the year just ended. Klutz collected the following additional information to prepare its statement of cash flows for the year: Klutz uses the indirect method to prepare its statement of cash flows. What is Klutz's net cash provided (used) by operating activities? A) $95,000 B) $137,000 C) $185,000 D) $207,000 Klutz uses the indirect method to prepare its statement of cash flows. What is Klutz's net cash provided (used) by operating activities?


A) $95,000
B) $137,000
C) $185,000
D) $207,000

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

Correct Answer

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Megan Corporation's net income last year was $98,000. Changes in the company's balance sheet accounts for the year appear below: Megan Corporation's net income last year was $98,000. Changes in the company's balance sheet accounts for the year appear below: The company paid a cash dividend of $36,000 and it did not dispose of any long-term investments or property, plant, and equipment. The company did not issue any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The free cash flow for the year was: A) $123,000 B) $87,000 C) $142,000 D) $269,000 The company paid a cash dividend of $36,000 and it did not dispose of any long-term investments or property, plant, and equipment. The company did not issue any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The free cash flow for the year was:


A) $123,000
B) $87,000
C) $142,000
D) $269,000

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

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The Warrel Corporation reported the following data for last year: The Warrel Corporation reported the following data for last year: Based solely on this information, the net cash provided (used) by financing activities on the statement of cash flows would be: A) $12,000 B) $34,000 C) $(12,000) D) $(18,000) Based solely on this information, the net cash provided (used) by financing activities on the statement of cash flows would be:


A) $12,000
B) $34,000
C) $(12,000)
D) $(18,000)

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

Correct Answer

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The most recent balance sheet and income statement of Penaloza Corporation appear below: The most recent balance sheet and income statement of Penaloza Corporation appear below: The company paid a cash dividend of $18. It did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) operating activities for the year was: A) $117 B) $45 C) $36 D) $116 The most recent balance sheet and income statement of Penaloza Corporation appear below: The company paid a cash dividend of $18. It did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) operating activities for the year was: A) $117 B) $45 C) $36 D) $116 The company paid a cash dividend of $18. It did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) operating activities for the year was:


A) $117
B) $45
C) $36
D) $116

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

Correct Answer

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