If Utilities Expense for the period equals $1,500, what was the cash paid for utilities for the period? Income taxes payable at the beginning and end of the year are $250,000 and $370,000, respectively. Interest received are usually classified as operating cash flows for a financial institution. The interest element is treated as a standard interest payment and is included as either a cash flow from operating activities or financing activities. Offsetting cash inflows and outflows in the statement of cash flows 5.1. Only financing activities are presented differently. Positive cash flow from operations is not important to a company's survival in the long-run. The issuance of notes payable for borrowing is classified in the statement of cash flows as an: The purchase of treasury stock is classified in the statement of cash flows as an: The statement of cash flows reports cash flows from the activities of: Which of the following is correct about the statement of cash flows? Receipt from the bank for long-term borrowing +$6,000; Minus payment of dividends ($1,000). Cash received from issuing common stock would be classified in which section of the Statement of Cash Flows? In this case, the cash flows from customers, interest received on dividend investment and loan payments are all cash flows. Interest received. The cash return on assets for the year is 10%. International Accounting Standard (IAS) 7 Statement of Cash Flows in para 31 requires: Cash flows from interest and dividends received and paid shall each be disclosed separately. Co. sold land costing $10,000 for $12,000. c. Dividends received. Shows that the change in total cash from one year to the next is equal to the net operating, investing, and financing cash flows. Which of the following is an example of a cash outflow from an investing activity? Inventory at the beginning and end of the year are $4 million and $3 million, respectively. Here, the creditors mean the creditors for non-trading liabilities such as […] Shively would report: During the year, Next Tec Corp. had the following cash flows: receipt from customers, $10,000; receipt from the bank for long-term borrowing, $6,000; payment to suppliers, $5,000; payment of dividends, $1,000, payment to workers, $2,000; and payment for machinery, $8,000. Entity is given an option to make its own decision that under what activity in Statement of Cash Flows the interest paid/received and dividends paid/received be disclosed. 3. A company had the following cash flows for the year: Financing activities would include cash paid for: Both dividends to stockholders and the purchase of treasury stock. receipt of dividends on investment in stock, added back onto the statement of cash flows, operating activity, subtracted from statement of cash flows, operating activity, subtracted form cash flow, operating activity, subtracted from cash flow, operating activity, subtracted from cash flow, investing activity, Cash received from issuing bonds: issuance of bonds, subtracted from cash flow, financing activity, redemption of bonds (decrease)- Bonds Payable, net cash provided by operating activities- capitol expenditures-cash dividends, Net cash provided by financing activities equation, proceeds from issuance of bonds payable - payment of dividends, cost of equip - accum. Paying dividends to investors creates a cash outflow from financing activities, Which of the following is correct about the statement of cash flows? We can separate cash return on assets into: Net cash flows from operating activities divided by average total assets. At the beginning of the period, Utilities Payable equals $500. At the beginning of the period, Accounts Receivable equals $1,700. b. C. Dividends received. the cash investing and financing transactions during the period The balance of cash reported in the balance sheet this year minus the balance of cash reported in the balance sheet last year equals: Net cash flows from operating, investing and financing activities. the entity's ability to generate future cash flows 2.) Cash received from the sale of a used company truck. The sale of equipment. Multiple Choice Cash received from a customer. Cash paid as dividends C. Cash received from the rendering of services to customers D. Cash paid to retire bonds payable. What is Orion's net operating cash flows for the year? It is the last of the three parts of the cash flow statement that shows the cash inflows and outflows from finance in an accounting year; Financing activities include cash inflows that are generated from getting funds like inflows from receipts from the issue of shares, receipts from a loan taken, etc. Proceeds from the issuance of common stock. In the operating activities section of the statement of cash flows, we start with net income when using: Arrow Printers paid $2,000 interest on short-term notes payable, $10,000 interest on long-term bonds, and $6,000 in dividends on its common stock. the entity's ability to generate future cash flows, 1. operating activities- cash effects of transactions that create revenues and expenses, The statement of cash flows classifies cash receipts and cash payments by these activities, cash flow activities that include acquiring and disposing of investments and property, plant, and equipment are classified as, cash flow activities that include obtaining cash from issuing debt and repaying the amounts borrowed are classified as, the indirect method of preparing the statement of cash flows begins with, under the indirect method of preparing the statement of cash flows, an increase in accounts receivable is. d. Dividends paid. During the year, Next Tec Corp. had the following cash flows: receipt from customers, $10,000; receipt from the bank for long-term borrowing, $6,000; payment to suppliers, $5,000; payment of dividends, $1,000, payment to workers, $2,000; and payment for machinery, $8,000. Wireless Technologies reports cost of goods sold of $40 million. Common classification errors in practice 5. In preparing a statement of cash flows under the indirect method, an increase in accounts payable would be reported as an: Which of the following is NOT a correct practice when adjusting net income to net operating cash flows?
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