Information to prepare the statement of cash flows usually comes from (a) comparative balance sheets, (b) current income statement, and (c) additional information.

Financing activities provide the means organizations use to pay for resources such as land, buildings, and equipment.

Which of the following purposes would financial statements serve for external users?

The purchase of land and buildings will generally be recorded in the same ledger account.

When preparing the operating activities section of the statement of cash flows using the indirect method, depreciation is subtracted from net income.

External users of accounting information manage and operate the company.

A company that has days’ sales uncollected of 30 days and days’ sales in inventory of 18 days implies that inventory will be converted to cash in about 12 days.

A company borrowed $10,000 by signing a 180-day promissory note at 9%. The total interest due on the maturity date is: (Use 360 days a year.)

Refer to the following selected financial information from Barstool Company. Compute the company’s days’ sales uncollected for Year 2. (Use 365 days a year.)    Year 2   Year 1   Accounts receivable, net 86,500   82,750   Net sales 723,000   693,000  

In preparing a company’s statement of cash flows for the most recent year using the indirect method, the following information is available:     Net income for the year was $ 52,000 Accounts payable decreased by   18,000 Accounts receivable increased by   25,000 Inventories increased by   5,000 Depreciation expense was   30,000 Net cash provided by operating activities was: