Asked by Val.Cabrera 1) Which one of the following should be added to net income in calculating net cash flow from operating activities using the indirect method? a.A loss on the sale of land b.A decrease in accrued liabilities c.Dividends paid on common stock d.A decrease in accounts payable 2) Which of the following is included in the statement of cash flows? a.Cash
flows from investing activities b.Total changes in stockholders' equity c.Changes in retained earnings d.Total assets 3) Which of the following is correct concerning the entries made on the spreadsheet used to prepare the statement of cash flows? a.The entries are used in preparing the data on the spreadsheet. b.The entries are used in summarizing the data on the spreadsheet. c.The entries are not posted to the ledger. d.All of these choices are
correct. 4) Which of the following should be subtracted from net income in calculating net cash flow from operating activities using the indirect method? a.A decrease in inventory b.A decrease in prepaid expenses c.An increase in accrued expenses d.An increase in inventory 5) If the free cash flow changed from $50,000 to $40,000, the change a.indicates an unfavorable trend. b.is not indicative. c.could indicate an unfavorable or a favorable
trend. d.indicates a favorable trend. 6) Dora Inc. reported the following on the company's cash flow statement for 20Y6: Net cash flow from operating activities $350,000 Net cash flow used for investing activities (100,000) Net cash flow used for financing activities (200,000) Sixty percent of the cash flow used for investing activities was used to purchase property, plant, and equipment. What is the free cash flow for 20Y6? a.$290,000 b.$250,000 c.$150,000 d.$410,000 7) Which of the following should be shown on a statement of cash flows under the financing activity section? a.Sale of a long-term investment in exchange for the common stock of another company b.Purchase of a building c.Issuance of a long-term note to acquire land d.Payment of cash dividends on common stock 8) The net income reported on the income statement for the current year was $275,000. Depreciation recorded on fixed assets
and amortization of patents for the year were $30,000 and $4,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: End Beginning Cash $50,000 $60,000 Accounts receivable 102,000 108,000 Inventories 88,000 93,000 Prepaid expenses 8,500 6,500 Accounts payable (merchandise creditors) 95,000 89,000 What amount of cash flows from operating activities is reported on the statement of cash flows prepared by the indirect method? a.$306,000 b.$324,000 c.$328,000 d.$256,000 Answer & Explanation  Answered by rusetteocampo or nec facilisis. Pellentesque nec ce d or gue nec e ve ur l sum iscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. 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Must be classified as an… A: Click to see the answer Q: Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the… A: Statement of cash flows: It is one of the financial statement that shows the cash and cash… Knowledge Booster Learn more about Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below. Recommended textbooks for you Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method a gain on the sale of equipment?An increase in accrued liabilities should add to the net income while calculating net cash flow from operating activities.
Which of the following should be deducted from net income in computing the net cash flows from operating activities using the indirect method?The correct answer is d. Gain on sale of land. This is because the gain itself on the sale of land is non-cash in nature. The full proceeds of the sale are instead reflected as cash flows from investing activities.
Which of the following would be added to net income using the indirect method?Under the indirect method, an increase in accounts payable is added to net income to arrive at net cash flows from operating activities. Under the indirect method, a decrease in accounts payable is added to net income to arrive at net cash flows from operating activities.
Which of the following should be included in calculating net cash flows from operating activities?Operating activities include generating revenue, paying expenses, and funding working capital. It is calculated by taking a company's (1) net income, (2) adjusting for non-cash items, and (3) accounting for changes in working capital.
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Which one of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?
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