1. The statement of cash flows reports ________. all of the income expenses prof

1. The statement of cash flows reports ________. all of the income expenses profit or losses a company has earned or incurred during an accounting period the change in total assets during an accounting period all of the cash a company has received and all of the cash a company has disbursed during an accounting period all of the sources and uses of shareholders equity2. The statement of cash flows reports the ________. sources and uses of cash profitability of a company changes in shareholders equity financial position of a company3. Cash budgets allow companies to plan for any cash shortage by ________. borrowing money altering the timing of receipts or disbursements securing a line of credit from a local bank all of these4. Cash from operating activities includes ________. all cash receipts and all cash disbursements for long-term business assets detailed estimates of the sources of cash and uses of cash all cash receipts and cash disbursements for routine sales and payments made in the course of doing business all cash receipts and all cash disbursements for loans contributions from owners and distributions to owners5. The following information is from Cashew Inc. s December 31 2011 annual report: Income statement Balance sheet 12/31/11 12/31/10Sales Revenue $90000 Accounts receivable $8000 $10000Salary expense $30000 Salary payable $2000 $3000Cash collected from customers on Cashew Inc. s statement of cash flows equals ________. $92000 $88000 $90000 $980006. The following information is from Sharp Inc. s December 31 2011 annual report: Income statement Balance sheet 12/31/11 12/31/10Sales Revenue $90000 Accounts receivable $8000 $10000Salary expense $30000 Salary payable $2000 $3000Cash paid for salaries on Sharp Inc. s statement of cash flows equals ________. $31000 $29000 $30000 $330007. The following information is from X Inc. s December 31 2011 annual report: Income statement Balance sheet 12/31/11 12/31/10Sales Revenue $90000 Unearned revenue $8000 $10000Insurance expense $30000 Prepaid insurance $2000 $3000Note: X Inc. does not sell to its customers on account; it collects cash from its customers in advance.Cash collected from customers on X Inc. s statement of cash flows equals ________. $98000 $92000 $88000 solution: 90000-(10000-8000) = 88000 $900008. The following information is from Avatar Inc. s December 31 2011 annual report: Income statement Balance sheet 12/31/11 12/31/10Sales Revenue $80000 Unearned revenue $5000 $9000Insurance expense $20000 Prepaid insurance $3000 $2000Note: Avatar always collects cash from its customers in advance.Cash paid for insurance on Avatar Inc. s statement of cash flows equals ________. $23000 $19000 $22000 $210009. The following information is from ABC Inc. s December 31 2011 annual report: Income statement Balance sheet 12/31/11 12/31/10Sales Revenue $800000 Unearned revenue $8000 $10000Insurance expense $30000 Prepaid insurance $1000 $3000Note: ABC Inc. does not sell to its customers on account; it collects cash from its customers in advance.Cash paid for interest on ABC Inc. s statement of cash flows equals ________. $28000 $32000 $33000 $3000010. On January 1 2011 Company Z had accounts receivable of $5000. During the year Company Z sold $100000 of merchandise to credit customers. At December 31 2011 Company Z had accounts receivable of $4000. How much cash did the company collect from credit customers during the year? $105000 $101000 $95000 $9900011. The direct method of preparing the operating activities section of the statement of cash flows ________. adjusts accrual-basis income lists each important item of cash outflows from investing activities adjusts cash-basis income lists each important item of cash inflows from operating activities12. The direct method for the preparation of the statement of cash flows ________. starts by estimating the sources of cash and the uses of cash. starts with net income and makes adjustments for all the items that are not cash. starts by converting every number on the income statement to its cash amount. all of these13. The indirect method of preparing the statement of cash flows ________. starts by converting net income into an accrual-based number is preferred by business over the direct method reports a greater amount of cash than the direct method provides greater clarity for users than the direct method14. Depreciation expense using the indirect method of preparing the statement of cash flows is ________. added to investing activities subtracted from investing activities added to net income subtracted from net income15. The indirect method for the preparation of the statement of cash flows ________. is not in conformity with GAAP is not in conformity with IFRS is the preferred method used by businesses is recommended by the FASB16. A use of cash for operating activities is ________. payment of dividends cash used to purchase treasury stock payment of an account payable cash used to buy equipment17. A use of cash for investing activities is ________. payment of an account payable cash used to purchase treasury stock cash used to buy equipment payment of dividends18. Team Shirts Inc. had net cash from operating activities of $50000. It paid $40000 to buy a new computer system by signing a $30000 note and paying the balance. Net cash from (or used for) investing activities for the period was ________. $40000 $(10000) $10000 $(40000)19. Negative cash flow from financing activities on the statement of cash flows means that a company has ________. paid a large cash dividend to shareholders bought additional property plant and equipment sold additional shares of common stock paid more for operating expenses than it collected from customers20. Positive cash flow from operating activities on the statement of cash flows means that a company has ________. bought additional property plant and equipment paid a large cash dividend to shareholders sold additional shares of common stock collected more from customers than it paid for operating expenses