Free cash flows to all debt and common equity shareholders represents the excess of cash flows from The expense incurred by issuing stock options should be Normally, cash flows from financing will start using cash during which phase of the product life cycle? When preparing the statement of cash flows using the indirect method, the purchase of equipment would appear as As a complement to the balance sheet and the income statement, the statement of cash flows is an informative statement for analysts for all the following reasons except: In a statement of cash flows, proceeds from issuing equity instruments should be classified as cash inflows from Which of the following is a cash flow from operating activities? Lui Company's 2010 income statement reported total sales revenue of $250,000

1. Free cash flows to all debt and common equity shareholders represents the excess of cash flows from

operating activities over cash flows
for investing activities

2. The expense incurred by issuing stock options should be

added back to net income in the
operating activities section.

3. Normally, cash flows from financing will start using cash during which phase of the product life cycle?

Maturity

4. When preparing the statement of cash flows using the indirect method, the purchase of equipment would appear as

a use of cash in the investing activities
section

5. As a complement to the balance sheet and the income statement, the statement of cash flows is an informative statement for analysts for all the following reasons except:

The existence of negative cash flows
from operations can be eliminated by
using this financial statement.

6. In a statement of cash flows, proceeds from issuing equity instruments should be classified as cash inflows from

financing activities.

7. Which of the following is a cash flow from operating activities?

Purchase of merchandise for resale.

8. Lui Company's 2010 income statement reported total sales revenue of $250,000. The 2009-2010 comparative balance sheets showed that accounts receivable decreased by $20,000. The 2010 "cash receipts from customers" would be

$270,000

9. Plano Corporation presented the following account balances for 2010 and 2009:
   
   December 31, 2010 / December 31, 2009
   
   Dividends payable $ 20,000 / $ 25,000
   Additional Paid-in-Capital $580,000 / $230,000
   Treasury Stock $185,000 / $100,000
   Equipment $800,000 / $700,000
   Accumulated Depreciation $225,000 / $140,000
   Common Stock $630,000 / $560,000
   Long-Term Notes Payable $225,000 / $125,000
   
   Additional information:
   1. Cash dividends of $20,000 were declared on December 15, 2010, payable on January 15, 2011.
   2. The company issued 70,000 shares of $1 par value common stock during 2010.
   3. The company repurchased 34,000 shares of its own common stock during the period. No treasury stock was sold during the period.
   4. Additional equipment was purchased by issuing a $100,000 long-term note payable.
   
   What was the net cash flows from financing in
   2010?

$310,000 (the equipment/financing
is disclosed as a non-cash transaction)

10. Toro Company recognized $655,000 of cost of goods sold in 2010, in addition its implementation of a just-in-time inventory system allowed it to reduce its inventory from $325,000 at the beginning of the year to $230,000 at the end of 2010.
    
    How much cash did Toro spend
    for inventory in 2010 (total purchases)?

$560,000... EI + COGS - BI = PURCHASES