COMPLETION STATEMENTS A statement of cash flows summarizes the operating, ____________, and ___________ activities of an entity. The cash effects of selling goods and services appears in the ______________ activities section of a statement of cash flows. The operating activities section of the statement of cash flows may be prepared using the ______________ method or the ______________ method. Net income from operations is generally not the same as cash provided from operations because revenues and expenses are recognized in the income statement on the ______________ basis. Using the indirect approach, noncash charges in the income statement are ______________ to net income and noncash credits are ______________ to compute cash provided by operations. If accounts receivable increase during a period, revenues on an accrual basis are ______________ than revenues on a cash basis. The sale of equipment at less than its book value is a(n) ______________ of cash that is reported in the ______________ activities section. Free _______________ equals cash provided by operations less capital expenditures and cash dividends. Under the direct method, noncash charges, such as depreciation, are _______________ in the statement of cash flows. Under the direct method, the two largest classes of items in the operating activities section for a merchandising company are cash ________________________ and cash _________________________. Cost of goods sold for the year amounted to $130,000, and during the year, accounts payable ______________ by $9,000 and inventory ______________ by $5,000 resulting in cash paid to suppliers of $116,000. In computing cash payments for operating expenses, a decrease in prepaid expenses is ______________ and an increase in accrued expenses payable is ______________ to (from) operating expenses, exclusive of depreciation. In computing cash payments for income taxes, a decrease in income taxes payable is ______________ to (from) income tax expense. In analyzing and interpreting financial statement information, three major characteristics are generally evaluated: (1)____________, (2)_____________, and (3)_____________. ______________ analysis, also called trend analysis, is a technique for evaluating a percentage increase or decrease for a financial statement item over a period of time. Expressing each item within a financial statement as a percentage of a base amount is called ______________ analysis. The ratios used in evaluating a company's liquidity and short-term debt paying ability that complement each other are the ______________ ratio and the ______________ ratio. The accounts receivable turnover is calculated by dividing _________________ by average ___________________. If inventory turnover is 8 times, and the average inventory was $400,000, the cost of goods sold during the year was $______________ and the days in inventory was ______________ days. Stanton Corporation had net income for the year of $200,000 and a profit margin of 20%. If total average assets were $400,000, the asset turnover ratio was ____________ times. The ______________ ratio measures the percentage of earnings distributed in the form of cash dividends. The lower the ______________ to ______________ ratio, the more equity "buffer" there is available to the creditors. Times interest earned is calculated by dividing _____________ before _______________ and ________________ by interest expense. Discontinued operations refers to the disposal of a ______________ of a business. Other __________________ includes all changes in stockholders equity during a period except changes resulting from investments by stockholders and distributions to stockholders.