Which of the following is something you would find using the cash flow statement Quizlet
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Q 23.4: When used in the context of a firm's statement of cash flows, what does the term "financing activities" refer to? Show A. The term refers to transactions involving liability and owners' equity items, including obtaining cash from creditors, repaying amounts borrowed from creditors, obtaining capital from owners, and providing owners with a return on their investment. B : The term refers to transactions involving long-term assets, including making loans, collecting loans, and acquiring and disposing of investments and productive long-lived assets. C : The term refers to the cash effects of transactions that enter into the determination of net income and, thus, help finance the operations of the business through the generation of cash. D : The term refers only to debt transactions that result from long-term borrowings from financial institutions. Q 23.12: Over the course of the fiscal year that just ended, a firm sold a facility for $350,000 cash, purchased a piece of equipment for $45,000 cash, and paid dividends of $25,000. Given this information, what is the firm's net cash flow from investing activities? A : $280,000 B : $305,000 C : ($330,000) D : ($370,000) $305,000 The facility sale represents a cash inflow of $350,000 from investing activities, while the equipment purchase represents a cash outflow of $45,000 from investing activities. Payment of dividends is a financing activity, not an investing activity, so it does not need to be considered in calculation of the firm's net cash flows from investing activities. Thus, based on the information provided, the firm's net cash flow from investing activities is $350,000 - $45,000 = $305,000. Q 23.15: When preparing a firm's statement of cash flows, which of the following adjustments would together result in a $30,000 addition to a firm's net income? A : A $15,000 adjustment for amortization of deferred charges and a $15,000 adjustment for gain on the sale of machinery B : A $15,000 adjustment for amortization of a bond premium and a $15,000 adjustment for depreciation expense C : A $15,000 adjustment for amortization of a patent and a $15,000 adjustment for loss on impairment of assets D : A $15,000 adjustment for amortization of a bond discount and a $15,000 adjustment for an increase in prepaid expenses Q 23.18: During the 2018 fiscal year, Donckers Inc. was forced to sell one of its properties to the local government. The land had a carrying value of $150,000 but Donckers received $160,000 from the sale, thus resulting in an extraordinary gain of $10,000, less $3,000 of taxes. If Donckers uses the indirect method to prepare its yearly statement of cash flows, it should adjust for the effects of this sale by... A : deducting the $10,000 gain from net income in the operating activities section, while also reporting the $160,000 cash inflow from the sale as an investing activity. B : adding the $10,000 gain to net income in the operating activities section, while also reporting the $160,000 cash inflow from the sale as an investing activity. C : adding the $10,000 gain from net income in the operating activities section, while also reporting the $160,000 cash outflow from the sale as an investing activity. D : deducting the $10,000 gain from net income in the operating activities section, while also reporting the $160,000 cash outflow from the sale as an investing activity. Q 24.11: Anderson Lighting launched an advertising campaign that cost $300,000 during April 2017. Anderson believes that the costs of the campaign will prove beneficial for the remainder of the year. How should Anderson report the expenses associated with the ad campaign by quarter on its interim reports? A : Q1 = $0; Q2 = $100,000; Q3 = $100,000; Q4 = $100,000 B : Q1 = $75,000; Q2 = $75,000' Q3 = $75,000; Q4 = $75,000 C : Q1 = $0; Q2 = $0; Q3 = $300,000; Q4 = $0 D : Q1 = $0; Q2 = $0; Q3 = $150,000; Q4 = $150,000 Recommended textbook solutions
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Which of the following is found on a cash flow statement?The cash flow statement includes cash made by the business through operations, investment, and financing—the sum of which is called net cash flow. The first section of the cash flow statement is cash flow from operations, which includes transactions from all operational business activities.
Which of the following is a section found in the statement of cash flows?The Statement of Cash Flows comprises of the Operating, Investing, and Financing sections.
Which of the following questions does a statement of cash flows answer?The reporting objectives of the statement of cash flows is to provide information about important cash inflows and outflows for business decision makers. It answers specific questions such as: (1) how does a company obtain its cash? (2) Where does a compay spend its cash? (3)What is the change in the cash balance?
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