Question : 117.The statement of cash flows will not provide insight into a.why : 1311966

 

 

 

117.The statement of cash flows will not provide insight into

a.why dividends were not increased.

b.whether cash flow is greater than net income.

c.the exact proceeds of a future bond issue.

d.how the retirement of debt was accomplished.

 

 

118.Which of the following transactions would not be classified as a financing activity?

a.Purchase of treasury stock

b.Payment of dividends

c.Issuance of bonds at a discount

d.Purchase of a long-term investment in bonds

 

 

119.A measure that describes the cash remaining from operations after adjustment for capital expenditures and dividends is

a.adjusted cash from operations.

b.cash provided by operations.

c.free cash flow.

d.net cash provided by operating activities.

 

 

120.Free cash flow equals cash provided by

a.operations less capital expenditures and cash dividends.

b.operations less cash dividends.

c.investing activities less capital expenditures and cash dividends.

d.operations less capital expenditures.

 

 

121.Collins Pest Control Products has the following information available:

Net Income$25,000

Cash Provided by Operations31,000

Cash Sales65,000

Capital Expenditures11,000

Dividends Paid3,000

What is Collins’ free cash flow?

a.$28,000

b.$20,000

c.$17,000

d.$11,000

 

 

122.During 2013, Korman Industries reported cash provided by operations of $690,000, cash used in investing of $1,029,000, and cash used in financing of $135,000. In addition, cash spent for fixed assets during the period was $414,000. No dividends were paid. Based on this information, what was Korman’s free cash flow?

a.($339,000)

b. $1,440,000

c. $276,000

d.($888,000)

 

 

123.All of the following statements about free cash flow are false except:

a.Significant free cash flow indicates less potential to finance new investments.

b.Free cash flow is most commonly calculated by subtracting capital expenditures from cash provided by operations and then adding cash dividends.

c.Free cash flow is not reported on the statement of cash flows.

d.Significant free cash flow indicates less potential to pay additional dividends.

 

 

124.In the Gannett Company, the beginning and ending balances in Land were $198,000 and $240,000 respectively. During the year, land costing $50,000 was sold for $50,000 cash, and land costing $92,000 was purchased for cash. The entries in the reconciling columns of the worksheet will include a:

a.credit to Land $50,000 and a debit to Sale of Land $50,000 under investing activities.

b.debit to Land $92,000 and a credit to Purchase of Land $92,000 under financing activities.

c.net debit to Land $42,000 and a credit to Purchase of Land $42,000 under investing activities.

d.credit to Land $50,000 and a debit to Sale of Land $50,000 under financing activities.

 

 

125.When listing accounts in the statement of cash flows worksheet, the accumulated depreciation account is shown

a.with accounts that have credit balances.

b.with accounts that have debit balances.

c.as a credit under the reconciling items.

d.as a debit under the reconciling items.

 

 

126.In the bottom portion of the statement of cash flows worksheet,

a.inflows of cash are debits in the reconciling columns.

b.outflows of cash are debits in the reconciling columns.

c.information pertaining to investing and financing activities only is entered.

d.only significant noncash transactions are entered.