Question 1

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 2

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

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Question 3

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

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Question 4

Selected information from Doodle Company's for 2010 is below (in millions): 
A)$36.5
B)$47.5
C)$37.5
D)$35.5
E)$23.5

Accepted Answer

36.5-6-7 = 23.5

Question 5

Explain the purpose and format of the statement of cash flows.Also,describe its use to decision makers.

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Question 6

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

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Question 7

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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Question 8

Explain the value that 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 9

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 10

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 11

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

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Question 12

Selected information from Doodle Company's for 2010 is below (in millions):

A)$4.0
B)$6.0
C)$24.0
D)$30.0
E)$18.0

Accepted Answer

24+6 = 30

Question 13

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

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Question 14

Holly Company's accounts receivable increased during the year by $8.5 million.It had a bad debt expense of $3.0 million,and its allowance for uncollectible accounts increased by $1.5 million.What is the amount of cash received from customers if Holly's sales were $50.2 million?
A)$40.2
B)$63.5
C)$60.2
D)$37.2
E)$54.2

Accepted Answer

50.2-8.5+1.5-3.0 = 40.2

Question 15

What are the five usual steps involved in the preparation of the statement of cash flows?

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Question 16

For each of the following items,indicate whether it would be classified as an (O)operating activity,an (I)investing activity,a (F)financing activity or a significant, (N)noncash financing and investing activity.

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Question 17

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 18

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

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