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The comparative balance sheet of Colson Company, for 2011 and the preceding year ended December 31, 2010 appears below in condensed form: The comparative balance sheet of Colson Company, for 2011 and the preceding year ended December 31, 2010 appears below in condensed form: The income statement for the current year is as follows: Additional data for the current year are as follows: Prepare a statement of cash flows, using the direct method of reporting cash flows from operating activities. The income statement for the current year is as follows: The comparative balance sheet of Colson Company, for 2011 and the preceding year ended December 31, 2010 appears below in condensed form: The income statement for the current year is as follows: Additional data for the current year are as follows: Prepare a statement of cash flows, using the direct method of reporting cash flows from operating activities. Additional data for the current year are as follows: The comparative balance sheet of Colson Company, for 2011 and the preceding year ended December 31, 2010 appears below in condensed form: The income statement for the current year is as follows: Additional data for the current year are as follows: Prepare a statement of cash flows, using the direct method of reporting cash flows from operating activities. Prepare a statement of cash flows, using the direct method of reporting cash flows from operating activities.

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Accounts receivable from sales to customers amounted to $40,000 and $32,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $110,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is


A) $118,000.
B) $110,000.
C) $102,000.
D) $150,000.

E) None of the above
F) All of the above

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Each of the events below may have an effect on the statement of cash flows. Designate how the event should be reported within the statement of cash flows

Premises
Paid the weekly payroll
Paid an account payable
Issued bonds payable for cash
Declared and paid a cash dividend
Paid cash for a new piece of equipment
Purchased treasury stock for cash
Paid cash for stock in another company
Received interest on a long-term bond investment
Received cash for sales
Sold a long-term stock investment for cash at book value
Responses
I + :Investing activity; cash inflow
I - :Investing activity; cash outflow
F + :Financing activity; cash inflow
F - :Financing activity; cash outflow
O + :Operating activity; cash inflow
O - :Operating activity; cash outflow
NC :Noncash investing and financing activity

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Paid the weekly payroll
Paid an account payable
Issued bonds payable for cash
Declared and paid a cash dividend
Paid cash for a new piece of equipment
Purchased treasury stock for cash
Paid cash for stock in another company
Received interest on a long-term bond investment
Received cash for sales
Sold a long-term stock investment for cash at book value

The statement of cash flows is an optional financial statement.

A) True
B) False

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On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include


A) receipts from the sale of investments
B) amortization of premium on bonds payable
C) payments for cash dividends
D) receipts from the issuance of capital stock

E) None of the above
F) All of the above

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