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Excerpts from Harris Corporation's comparative balance sheet appear below: Excerpts from Harris 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 Payable is added to net income;The change in Accrued Liabilities is subtracted from net income B) The change in Accounts Payable is added to net income;The change in Accrued Liabilities is added to net income C) The change in Accounts Payable is subtracted from net income;The change in Accrued Liabilities is added to net income D) The change in Accounts Payable is subtracted from net income;The change in Accrued Liabilities is subtracted from 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 Payable is added to net income;The change in Accrued Liabilities is subtracted from net income
B) The change in Accounts Payable is added to net income;The change in Accrued Liabilities is added to net income
C) The change in Accounts Payable is subtracted from net income;The change in Accrued Liabilities is added to net income
D) The change in Accounts Payable is subtracted from net income;The change in Accrued Liabilities is subtracted from net income

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

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For stockholders' equity accounts,credits are added to the beginning balance on the statement of cash flows.

A) True
B) False

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Lueckenhoff Corporation's most recent balance sheet appears below: Lueckenhoff Corporation's most recent balance sheet appears below: The company's net income for the year was $153 and it did not sell or retire any property,plant,and equipment during the year.Cash dividends were $28.The net cash provided by (used in) operating activities for the year was: A) $34 B) $187 C) $119 D) $219 The company's net income for the year was $153 and it did not sell or retire any property,plant,and equipment during the year.Cash dividends were $28.The net cash provided by (used in) operating activities for the year was:


A) $34
B) $187
C) $119
D) $219

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

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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) an increase in accounts receivable.
B) an increase in accounts payable.
C) an increase in common stock.
D) an increase in bonds payable.

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

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Gasco Corporation's balance sheet and income statement appear below: Gasco Corporation's balance sheet and income statement appear below: Cash dividends were $54. The company sold equipment for $14 that was originally purchased for $8 and that had accumulated depreciation of $1. It did not issue any bonds payable or repurchase any of its own common stock. -The net cash provided by (used in) operating activities for the year was: A) $261 B) $299 C) $214 D) $207 Gasco Corporation's balance sheet and income statement appear below: Cash dividends were $54. The company sold equipment for $14 that was originally purchased for $8 and that had accumulated depreciation of $1. It did not issue any bonds payable or repurchase any of its own common stock. -The net cash provided by (used in) operating activities for the year was: A) $261 B) $299 C) $214 D) $207 Cash dividends were $54. The company sold equipment for $14 that was originally purchased for $8 and that had accumulated depreciation of $1. It did not issue any bonds payable or repurchase any of its own common stock. -The net cash provided by (used in) operating activities for the year was:


A) $261
B) $299
C) $214
D) $207

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

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Spade Company recorded the following events last year:Spade Company 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) $(947,000) B) $(430,000) C) $(300,000) D) $(620,000) 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) $(947,000)
B) $(430,000)
C) $(300,000)
D) $(620,000)

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

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Frizz Hair Salon had net income of $93,000 for the year just ended.Frizz collected the following additional information to prepare its statement of cash flows for the year: Frizz Hair Salon had net income of $93,000 for the year just ended.Frizz collected the following additional information to prepare its statement of cash flows for the year: Frizz uses the indirect method to prepare its statement of cash flows.What is Frizz's net cash provided (used) by operating activities? A) $92,000 B) $102,000 C) $120,000 D) $126,000 Frizz uses the indirect method to prepare its statement of cash flows.What is Frizz's net cash provided (used) by operating activities?


A) $92,000
B) $102,000
C) $120,000
D) $126,000

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

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Kahn Company is a merchandiser that reported net income of $90,000.Additional information follows: Kahn Company is a merchandiser that reported net income of $90,000.Additional information follows: Based on this information,under the indirect method the cash provided by operating activities on the statement of cash flows would be: A) $90,000. B) $99,000. C) $81,000. D) $79,000. Based on this information,under the indirect method the cash provided by operating activities on the statement of cash flows would be:


A) $90,000.
B) $99,000.
C) $81,000.
D) $79,000.

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

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The most recent comparative balance sheet of Broekemeier Corporation appears below: The most recent comparative balance sheet of Broekemeier 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) C) and D)
F) B) and D)

Correct Answer

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The sale of equipment at a gain would be shown on the statement of cash flows prepared under the indirect method in which of the following manners?


A) Cash received would be shown under Investing Activities and the gain would be subtracted from net income.
B) Cash received would be shown under Investing Activities and the gain would be added to net income.
C) Cash received would be shown under Investing Activities and the gain would not appear on the statement of cash flows.
D) Cash received would be shown as an adjustment to net income and the gain would not appear on the statement of cash flows.

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

Correct Answer

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Mccloe Corporation's balance sheet and income statement appear below: Mccloe Corporation's balance sheet and income statement appear below: Cash dividends were $9.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) $5 B) $(22) C) $(18) D) $(9) Mccloe Corporation's balance sheet and income statement appear below: Cash dividends were $9.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) $5 B) $(22) C) $(18) D) $(9) Cash dividends were $9.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) $5
B) $(22)
C) $(18)
D) $(9)

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

Correct Answer

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Threets Corporation's most recent comparative balance sheet appears below: Threets Corporation's most recent comparative balance sheet appears below: The company's net income for the year was $109 and it paid a cash dividend. It did not dispose of any property, plant, and equipment during the year. The company did not issue any bonds payable or repurchase any of its own common stock. -The net cash provided by (used in) operating activities for the year was: A) $120 B) $98 C) $(11) D) $156 The company's net income for the year was $109 and it paid a cash dividend. It did not dispose of any property, plant, and equipment during the year. The company did not issue any bonds payable or repurchase any of its own common stock. -The net cash provided by (used in) operating activities for the year was:


A) $120
B) $98
C) $(11)
D) $156

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

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Paying taxes to governmental bodies is considered an operating activity on the statement of cash flows.

A) True
B) False

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Dooling Corporation's balance sheet and income statement appear below: Dooling Corporation's balance sheet and income statement appear below: Cash dividends were $14.The company sold equipment for $15 that was originally purchased for $11 and that had accumulated depreciation of $3.The net cash provided by (used in) investing activities for the year was: A) $(83) B) $68 C) $15 D) $(68) Dooling Corporation's balance sheet and income statement appear below: Cash dividends were $14.The company sold equipment for $15 that was originally purchased for $11 and that had accumulated depreciation of $3.The net cash provided by (used in) investing activities for the year was: A) $(83) B) $68 C) $15 D) $(68) Cash dividends were $14.The company sold equipment for $15 that was originally purchased for $11 and that had accumulated depreciation of $3.The net cash provided by (used in) investing activities for the year was:


A) $(83)
B) $68
C) $15
D) $(68)

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

Correct Answer

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Charlotte Company's net income last year was $91,000.Changes in the company's balance sheet accounts for the year appear below: Charlotte Company's net income last year was $91,000.Changes in the company's balance sheet accounts for the year appear below: The company did not dispose of any property,plant,and equipment,sell any long-term investments,issue any bonds payable,or repurchase any of its own common stock during the year.The company declared and paid a cash dividend. Required: a.Construct in good form the operating activities section of the company's statement of cash flows for the year.(Use the indirect method. ) 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 did not dispose of any property,plant,and equipment,sell any long-term investments,issue any bonds payable,or repurchase any of its own common stock during the year.The company declared and paid a cash dividend. Required: a.Construct in good form the operating activities section of the company's statement of cash flows for the year.(Use the indirect method. ) 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 activiti...

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Waldrop Corporation's comparative balance sheet appears below: Waldrop 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 $4,000.The net cash provided by operating activities is: A) $35,000 B) $14,000 C) $41,000 D) $43,000 The company did not dispose of any property,plant,and equipment during the year.Its net income for the year was $4,000.The net cash provided by operating activities is:


A) $35,000
B) $14,000
C) $41,000
D) $43,000

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

Correct Answer

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In a statement of cash flows,receipts from sales of property,plant,and equipment should be classified as a(n) :


A) Operating activity.
B) Financing activity.
C) Investing activity.
D) Selling activity.

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

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Arcade Corporation's balance sheet and income statement appear below: Arcade Corporation's balance sheet and income statement appear below: The company did not dispose of any property,plant,and equipment,retire any bonds payable,or repurchase any of its own common stock during the year.The company declared and paid a cash dividend. Required: Prepare a statement of cash flows in good form using the indirect method. Arcade Corporation's balance sheet and income statement appear below: The company did not dispose of any property,plant,and equipment,retire any bonds payable,or repurchase any of its own common stock during the year.The company declared and paid a cash dividend. Required: Prepare a statement of cash flows in good form using the indirect method. The company did not dispose of any property,plant,and equipment,retire any bonds payable,or repurchase any of its own common stock during the year.The company declared and paid a cash dividend. Required: Prepare a statement of cash flows in good form using the indirect method.

Correct Answer

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Kawalek Corporation's balance sheet appears below: Kawalek Corporation's balance sheet appears below: The net income for the year was $151.Cash dividends were $42.The company 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: Prepare a statement of cash flows in good form using the indirect method. The net income for the year was $151.Cash dividends were $42.The company 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: Prepare a statement of cash flows in good form using the indirect method.

Correct Answer

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Megna Company's net income last year was $143,000. Changes in the company's balance sheet accounts for the year appear below: Megna Company's net income last year was $143,000. Changes in the company's balance sheet accounts for the year appear below: The company paid a cash dividend 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 questions pertain to the company's statement of cash flows. -The free cash flow for the year was: A) $142,000 B) $148,000 C) $301,000 D) $93,000 The company paid a cash dividend 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 questions pertain to the company's statement of cash flows. -The free cash flow for the year was:


A) $142,000
B) $148,000
C) $301,000
D) $93,000

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

Correct Answer

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