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Hirshberg Corporation's comparative balance sheet appears below: Hirshberg Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was $11,000 and its cash dividends were $4,000. It did not sell or retire any property, plant, and equipment during the year. The company's net cash used in investing activities is: A) $6,000 B) $54,000 C) $24,000 D) $44,000 The company's net income (loss) for the year was $11,000 and its cash dividends were $4,000. It did not sell or retire any property, plant, and equipment during the year. The company's net cash used in investing activities is:


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

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

Correct Answer

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Randal Corporation recorded the following activity for the year just ended: Randal Corporation recorded the following activity for the year just ended: The net cash provided by financing activities for the year was: A) $100,000 B) $550,000 C) $180,000 D) $680,000 The net cash provided by financing activities for the year was:


A) $100,000
B) $550,000
C) $180,000
D) $680,000

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

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Which of the following would be added to net income in the operating activities section of a statement of cash flows prepared using the indirect method?


A) a decrease in accounts receivable.
B) an increase in prepaid expenses.
C) an increase in accrued liabilities.
D) an increase in property, plant and equipment.

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

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An increase in accounts receivable of $1,000 over the course of a 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 $1,000 in order to arrive at net cash provided by operating activities.
B) a deduction from net income of $1,000 in order to arrive at net cash provided by operating activities.
C) an addition of $1,000 under financing activities.
D) a deduction of $1,000 under financing activities.

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

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Cash payments to repay the principal amount of debt are reported as a cash outflow in the investing activities section of the statement of cash flows.

A) True
B) False

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Excerpts from Neuwirth Corporation's comparative balance sheet appear below: Excerpts from Neuwirth Corporation's comparative balance sheet appear below: Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method? A) The change in Accounts Receivable is added to net income; The change in Inventory is added to net income B) The change in Accounts Receivable is added to net income; The change in Inventory is subtracted from net income C) The change in Accounts Receivable is subtracted from net income; The change in Inventory is subtracted from net income D) The change in Accounts Receivable is subtracted from net income; The change in Inventory is added to net income Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?


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

E) A) and D)
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) investing activities on the statement of cash flows would be: A) ($280,000) B) ($390,000) C) ($760,000) 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) investing activities on the statement of cash flows would be:


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

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

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The following events occurred last year for the Cart Corporation: The following events occurred last year for the Cart Corporation: Based solely on the above information, the net cash provided by financing activities for the year on the statement of cash flows was: A) $12,000 B) $24,000 C) $20,000 D) $49,000 Based solely on the above information, the net cash provided by financing activities for the year on the statement of cash flows was:


A) $12,000
B) $24,000
C) $20,000
D) $49,000

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

Correct Answer

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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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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) C) and D)

Correct Answer

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Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, a decrease in inventory would be added to net income.

A) True
B) False

Correct Answer

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Financial statements of Rukavina Corporation follow: Financial statements of Rukavina Corporation follow: Cash dividends were $8. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. The net cash provided by (used in) financing activities for the year was: A) ($8) B) ($44) C) ($51) D) $1 Financial statements of Rukavina Corporation follow: Cash dividends were $8. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. The net cash provided by (used in) financing activities for the year was: A) ($8) B) ($44) C) ($51) D) $1 Cash dividends were $8. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. The net cash provided by (used in) financing activities for the year was:


A) ($8)
B) ($44)
C) ($51)
D) $1

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

Correct Answer

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Financial statements of Rukavina Corporation follow: Financial statements of Rukavina Corporation follow: Cash dividends were $8. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. The net cash provided by (used in) operating activities for the year was: A) $21 B) $75 C) $27 D) $69 Financial statements of Rukavina Corporation follow: Cash dividends were $8. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. The net cash provided by (used in) operating activities for the year was: A) $21 B) $75 C) $27 D) $69 Cash dividends were $8. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. The net cash provided by (used in) operating activities for the year was:


A) $21
B) $75
C) $27
D) $69

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

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In a statement of cash flows, a change in an income taxes payable account would be recorded in the:


A) operating activities section.
B) financing activities section.
C) investing activities section.
D) stockholders' equity section.

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

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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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Birchett Corporation's most recent balance sheet appears below: Birchett Corporation's most recent balance sheet appears below: The company's net income for the year was $91 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $22. The net cash provided by (used in) operating activities for the year was: A) $86 B) $5 C) $96 D) $130 The company's net income for the year was $91 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $22. The net cash provided by (used in) operating activities for the year was:


A) $86
B) $5
C) $96
D) $130

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

Correct Answer

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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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Sonier Corporation's most recent balance sheet appears below: Sonier Corporation's most recent balance sheet appears below: The net income for the year was $97. Cash dividends were $19. The company did not issue any bonds or repurchase any of its common stock during the year. The net cash provided by (used in) financing activities for the year was: A) ($43) B) ($19) C) ($25) D) $1 The net income for the year was $97. Cash dividends were $19. The company did not issue any bonds or repurchase any of its common stock during the year. The net cash provided by (used in) financing activities for the year was:


A) ($43)
B) ($19)
C) ($25)
D) $1

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

Correct Answer

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Marbry Corporation's balance sheet and income statement appear below: Marbry Corporation's balance sheet and income statement appear below: Cash dividends were $21. The company did not issue any bonds or repurchase any of its own common stock during the year. The net cash provided by (used in) financing activities for the year was: A) $4 B) ($22) C) ($5) D) ($21) Marbry Corporation's balance sheet and income statement appear below: Cash dividends were $21. The company did not issue any bonds or repurchase any of its own common stock during the year. The net cash provided by (used in) financing activities for the year was: A) $4 B) ($22) C) ($5) D) ($21) Cash dividends were $21. The company did not issue any bonds or repurchase any of its own common stock during the year. The net cash provided by (used in) financing activities for the year was:


A) $4
B) ($22)
C) ($5)
D) ($21)

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

Correct Answer

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

Correct Answer

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