Question
In: Accounting
27.Which statement is false regarding the preparation of the indirect method of the statement of cash...
27.Which statement is false regarding the preparation of the indirect method of the statement of cash flows?
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15.
Which of the following would be considered a committed fixed cost (a cost that is incurred regardless of the level of activity during the period)?
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Solutions
ekkarill92 answered 1 year agoRelated Solutions
Which of the following is shown on the indirect method statement of cash flows but not...
Which of the following is shown on the indirect method statement
of cash flows but not the direct method statement of cash
flows?
Select one:
a. 10% Stock Dividend
b. Dividends Paid
c. Amortization of Premium on Bonds Payable
d. Proceeds from Sale of Fixed Asset
e. Purchase of Treasury Stock
Statement of Cash Flows (Indirect Method) Use the following information regarding the Lund Corporation to (a)...
Statement of Cash Flows (Indirect Method)
Use the following information regarding the Lund Corporation to (a)
prepare a statement of cash flows using the indirect method and (b)
compute Lund's operating-cash-flow-to-current-liabilities
ratio.
Accounts payable increase
$14,400
Accounts receivable increase
6,400
Accrued liabilities decrease
4,800
Amortization expense
9,600
Cash balance, January 1
35,200
Cash balance, December 31
24,000
Cash paid as dividends
46,400
Cash paid to purchase land
144,000
Cash paid to retire bonds payable at par
96,000
Cash received from...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Lund Corporation to (a)...
Statement of Cash Flows (Indirect Method)
Use the following information regarding the Lund Corporation to (a)
prepare a statement of cash flows using the indirect method and (b)
compute Lund's operating-cash-flow-to-current-liabilities
ratio.
Accounts payable increase
$13,500
Accounts receivable increase
6,000
Accrued liabilities decrease
4,500
Amortization expense
9,000
Cash balance, January 1
33,000
Cash balance, December 31
22,500
Cash paid as dividends
43,500
Cash paid to purchase land
135,000
Cash paid to retire bonds payable at par
90,000
Cash received from...
In a statement of cash flows (indirect method), which of the following are added to net...
In a statement of cash flows (indirect method), which of the
following are added to net income to determine net
cash flow from operating activities?
Select one:
a. Amortization of Premium on Bond Investments, but not Increase
in Prepaid Expenses
b. Increase in Prepaid Expenses, but not Amortization of Premium
on Bond Investments
c. Both Amortization of Premium on Bond Investments and Increase
in Prepaid Expenses
d. Neither Amortization of Premium on Bond Investments nor
Increase in Prepaid Expenses
Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare...
Statement of Cash Flows (Indirect Method)
Use the following information regarding the Newcastle Corporation
to prepare a statement of cash flows using the indirect method:
Accounts payable decrease
$9,000
Accounts receivable increase
12,600
Wages payable decrease
5,400
Amortization expense
28,800
Cash balance, January 1
54,000
Cash balance, December 31
12,600
Cash paid as dividends
10,800
Cash paid to purchase land
180,000
Cash paid to retire bonds payable at par
135,000
Cash received from issuance of common stock
81,000
Cash received...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremantle Corporation to prepare...
Statement of Cash Flows (Indirect Method)
Use the following information regarding the Fremantle Corporation
to prepare a statement of cash flows using the indirect
method:
Accounts payable increase
$11,000
Accounts receivable increase
4,000
Accrued liabilities decrease
3,000
Amortization expense
26,000
Cash balance, January 1
22,000
Cash balance, December 31
117,000
Cash paid as dividends
49,000
Cash paid to purchase land
100,000
Cash paid to retire bonds payable at par
70,000
Cash received from issuance of common stock
75,000
Cash received...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare...
Statement of Cash Flows (Indirect Method) Use the following
information regarding the Newcastle Corporation to prepare a
statement of cash flows using the indirect method:
Accounts payable decrease
$3,000
Accounts receivable increase
7,000
Wages payable decrease
9,000
Amortization expense
16,000
Cash balance, January 1
31,000
Cash balance, December 31
9,000
Cash paid as dividends
6,000
Cash paid to purchase land
100,000
Cash paid to retire bonds payable at par
69,000
Cash received from issuance of common stock
45,000
Cash received...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare...
Statement of Cash Flows (Indirect Method)
Use the following information regarding the Newcastle Corporation
to prepare a statement of cash flows using the indirect method:
Accounts payable decrease
$7,500
Accounts receivable increase
10,500
Wages payable decrease
4,500
Amortization expense
24,000
Cash balance, January 1
45,000
Cash balance, December 31
10,500
Cash paid as dividends
9,000
Cash paid to purchase land
150,000
Cash paid to retire bonds payable at par
112,500
Cash received from issuance of common stock
67,500
Cash received...
INDIRECT METHOD - STATEMENT CASH FLOW Using information below, Create a Statement of Cashflow (INDIRECT METHOD)...
INDIRECT METHOD - STATEMENT CASH FLOW
Using information below, Create a Statement of Cashflow
(INDIRECT METHOD)
**Note: create the statement for the year of 2018
only.
Net Income from Income statement:
$105,000.00
the Retained Earnings was $80,000.00
2017
2018
Accounts Payable
$81,000
$66,000
Accounts Receivable
$110,000
$128,000
Accumulated Depreciation, PP&E
$290,000
$356,000
Cash and Cash Equivalents
$62,000
$54,000
Common Stock
$415,000
$425,000
Cost of Goods Sold
$359,000
$368,000
Depreciation Expense
$62,000
$66,000
Dividends
$20,000
$25,000
Income Tax Expense
$18,000
$23,000...
Indirect method vs. Direct method for Cash Flow Statement The indirect method considers the opening and...
Indirect method vs. Direct method for Cash Flow Statement
The indirect method considers the opening and closing balance of
ledger accounts in determining the movements and computing cash
flows. If there are wrong postings in the ledger account the cash
flows determined are not accurate since only opening and closing
balances are considered. In direct method since each line item of
ledger is classified into cash and non cash it leads to accurate
computation of cash flows.
The indirect method...
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