Question 1

A corporation reported average total assets of $397,350 in 2012 and $440,800 in 2013.Its net operating cash flow was $35,667 for 2012 and $35,790 for 2013.Calculate the cash flow on total assets ratio for both years.Comment on the results.

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Question 2

A company reported assets of $13,362 million at January 1 and $13,369 million as of December 31 of the current year.The company's net cash flows from operations was $2,204 million.Calculate the cash flow on total assets ratio.

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Question 3

Explain how the cash flows from operating activities section of the statement of cash flows is prepared when using the direct method.

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Question 4

Explain the what value separating cash flows into operating activities,investing activities,and financing activities has to financial statement users when it comes analyzing cash flows and the company's financial condition.

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Question 5

A company reported operating cash flows of $23,400 in 2012 and $26,220 in 2013.The average total assets for the company in 2012 was $262,000 and $285,000 in 2013.Calculate the cash flow on total assets ratio for both years.Comment on the results.

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Question 6

Use the following calendar-year information to prepare David Company's statement of cash flows using the direct method.You may omit the schedule reconciling net income and net cash provided or used by operating activities.
 $$\begin{array} { | l | r | } 
\hline \text { Cash paid to purchase machinery } & \$ 124 _ { 2 } 000 \
\hline \text { Cash paid for merchardise irventory } & 220,000 \
\hline \text { Cash paid for operatirre expenses } & 280,000 \
\hline \text { Cash paid for interest } & 4,000 \
\hline \text { Cash received for interest } & 10,000 \
\hline \text { Cash proceeds from sale of land } & 100,000 \
\hline \text { Cash balance at begirning of year } & 15,000 \
\hline \text { Cash balance at end of year } & 77,000 \
\hline \text { Cash borrowed on a short-ternn note } & 25,000 \
\hline \text { Cash dividends paid } & 24,000 \
\hline \text { Cash received from stock issuarice } & 57,000 \
\hline \text { Cash collections from customers } & 522,000 \
\hline
\end{array}$$

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Question 7

Explain how to determine cash flows from investing and financing activities.

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Question 8

Describe the format of the statement of cash flows,including the reporting of significant noncash investing and financing activities.

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Question 9

For each of the following items,indicate whether it would be classified as either an operating activity,an investing activity,a financing activity,or a significant noncash financing and investing activity.

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Question 10

Explain how the operating activities section of the statement of cash flows is prepared when using the indirect method.

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Question 11

A company reported net cash provided by operating activities of $131.4 million.Assets totaled $2,197.7 million at the beginning of the year and $2,040.0 million at the end of the year.Calculate this company's cash flow on total assets ratio.

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Question 12

Use the following information about the calendar-year cash flows of MacArthur Company to prepare a statement of cash flows (direct method)and a schedule of noncash investing and financing activities.
 $\begin{array}{|l|r|}
\hline \text { Cash and cash equivalents, beginning-year balance } & \$ 18,000 \
\hline \text { Cash and cash equivalents, year-end balance } & 78,750 \
\hline \text { Cash payments for merchandise inventory } & 75,750 \
\hline \text { Cash paid for store equipment } & 15,750 \
\hline \text { Cash borrowed on three-month note payable } & 22,500 \
\hline \text { Cash dividends paid } & 12,000 \
\hline \text { Cash paid for salaries } & 39,000 \
\hline \text { Cash payments for other operating expenses } & 48,000 \
\hline \text { Building purchased and financed by long-term note payable } & 78,000 \
\hline \text { Cash received from customers } & 220,500 \
\hline \text { Cash interest received } & 8,250\
\hline
\end{array}$

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Question 13

A company reported average total assets of $496,000 in 2012 and $604,000 in 2013.Its net operating cash flow was $41,150 in 2012 and $55,500 in 2013.Calculate its cash flow on total assets ratio for both years.Comment on the results.

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Question 14

Define and discuss the differences between operating,investing,and financing activities.

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Question 15

Define the cash flow on total assets ratio and explain how it is used to evaluate cash flows and to assess company performance.

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Question 16

Define and explain significant noncash investing and financing activities and the method of reporting them on the statement of cash flows.

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Question 17

A company reported operating cash flows of $57,000 and average total assets of $962,000.Calculate the company's cash flow on total assets ratio.

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