Financial Accounting: Cash Flows, Operating, Investing, and Financing Activities

Which of the following is not an operating activity?

Payment of a cash dividend.

Accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of the year, respectively. Income reported on the Income Statement for the year was $240,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

$250,000.

If sales are $130,000, beginning accounts receivable $12,000, and ending accounts receivable $15,000, what is the amount of cash receipts from customers?

$127,000.

If Sales are $180,000, beginning Accounts Receivable $12,000, and ending Accounts Receivable $18,000, what is the amount of the cash receipts from customers?

$174,000.

The Cash T

account used in the T-account approach to preparing the statement of cash flows includes all of the following except: - planning

The best measure of a company's ability to generate sufficient cash to continue as a going concern is net cash provided by

operating activities.

Gentry Company's land account decreased $120,000 because of a cash sale for $120,000, its equipment account increased $40,000 as a result of a cash purchase, and its bonds payable account increased $130,000 from issuance of bonds for cash at face value. The net cash provided by investing activities is

$80,000.

Cash flow activities that include acquiring and disposing of investments and property, plant, and equipment are classified as

investing activities.

Cash flow activities that include obtaining cash from issuing debt and repaying the amounts borrowed are classified as

financing activities.

The indirect method of preparing the statement of cash flows begins with

net income.

Meyer Company reported net income for the year of $30,000. During the year, Accounts Receivable increased by $7,000, Accounts Payable decreased by $3,000, and depreciation expense of $5,000 was recorded. Also, Equipment was purchased for $40,000 cash. Using the indirect method, net cash provided by operating activities for the year is

$25,000.