AACSB: Analytic Blooms: Understand Difficulty: Challenge Learning Objective: 02-01 The income statement measures profitability. 119. Which of the following would indicate an accurate statement of cash flows? Analytic Blooms: Analyze Difficulty: Intermediate Learning Objective: 02-04 The statement of cash flows indicates the change in the cash position of the firm. 120. An increase of $100,000 in inventory result in a(n) Analytic Blooms: Analyze Difficulty: Intermediate Learning Objective: 02-04 The statement of cash flows indicates the change in the cash position of the firm. 121. Compute the net increase or decrease in cash if Star Corporation had $250,000 in net income, $30,000 in depreciation expense, a decrease of $20,000 in A/R and an increase in bonds payable of $50,000. Change in cash flow = Net income + Depreciation + Decrease in A/R + Increase in bonds = $250,000 + $30,000 + $20,000 + $50,000 = $350,000.
AACSB: Analytic Blooms: Understand Difficulty: Challenge Learning Objective: 02-01 The income statement measures profitability. 119. Which of the following would indicate an accurate statement of cash flows? Analytic Blooms: Analyze Difficulty: Intermediate Learning Objective: 02-04 The statement of cash flows indicates the change in the cash position of the firm. 120. An increase of $100,000 in inventory result in a(n) Analytic Blooms: Analyze Difficulty: Intermediate Learning Objective: 02-04 The statement of cash flows indicates the change in the cash position of the firm. 121. Compute the net increase or decrease in cash if Star Corporation had $250,000 in net income, $30,000 in depreciation expense, a decrease of $20,000 in A/R and an increase in bonds payable of $50,000. Change in cash flow = Net income + Depreciation + Decrease in A/R + Increase in bonds = $250,000 + $30,000 + $20,000 + $50,000 = $350,000.