Question : Learning Objective 9-4 1) The following information from Cashew, Inc.’s December : 1252992

 

Learning Objective 9-4

 

1) The following information is from Cashew, Inc.’s December 31, 2011 annual report:

 

 

Income statement

Balance sheet

 

 

12/31/11

12/31/10

Sales revenue

$90,000

 

 

Accounts receivable

 

$8,000

$10,000

Salary expense

$30,000

 

 

Salary payable

 

$2,000

$3,000

 

Cash collected from customers on Cashew, Inc.’s statement of cash flows equals ________.

A) $90,000

B) $98,000

C) $88,000

D) $92,000

 

2) The following information is from Cashew, Inc.’s December 31, 2011 annual report:

 

 

Income statement

Balance sheet

 

 

12/31/11

12/31/10

Sales revenue

$90,000

 

 

Accounts receivable

 

$8,000

$10,000

Salary expense

$30,000

 

 

Salary payable

 

$2,000

$3,000

 

Cash paid for salaries on Cashew, Inc.’s statement of cash flows equals ________.

A) $30,000

B) $29,000

C) $33,000

D) $31,000

3) The following information is from Sharp, Inc.’s December 31, 2011 annual report:

 

 

Income statement

Balance sheet

 

 

12/31/10

12/31/11

Sales revenue

$90,000

 

 

Accounts receivable

 

$8,000

$10,000

Salary expense

$30,000

 

 

Salary payable

 

$2,000

$3,000

 

Cash collected from customers on Sharp, Inc.’s statement of cash flows equals ________.

A) $90,000

B) $98,000

C) $88,000

D) $92,000

 

4) The following information is from Sharp, Inc.’s December 31, 2011 annual report:

 

 

Income statement

Balance sheet

 

 

12/31/10

12/31/11

Sales revenue

$90,000

 

 

Accounts receivable

 

$8,000

$10,000

Salary expense

$30,000

 

 

Salary payable

 

$2,000

$3,000

 

Cash paid for salaries on Sharp, Inc.’s statement of cash flows equals ________.

A) $30,000

B) $29,000

C) $33,000

D) $31,000

5) The following information is from X, Inc.’s December 31, 2011 annual report:

 

 

Income statement

Balance sheet

 

 

12/31/11

12/31/10

Sales revenue

$90,000

 

 

Unearned revenue

 

$8,000

$10,000

Insurance expense

$30,000

 

 

Prepaid insurance

 

$2,000

$3,000

Note: X, Inc. does not sell to its customers on account; it collects cash from its customers in advance.

 

Cash collected from customers on X, Inc.’s statement of cash flows equals ________.

A) $90,000

B) $98,000

C) $88,000

D) $92,000

 

6) The following information is from X, Inc.’s December 31, 2011 annual report:

 

 

Income statement

Balance sheet

 

 

12/31/11

12/31/10

Sales revenue

$90,000

 

 

Unearned revenue

 

$8,000

$10,000

Insurance expense

$30,000

 

 

Prepaid insurance

 

$2,000

$3,000

Note: X, Inc. does not sell to its customers on account; it collects cash from its customers in advance.

 

Cash paid for insurance on X, Inc.’s statement of cash flows equals ________.

A) $30,000

B) $29,000

C) $33,000

D) $31,000

7) The following information is from Avatar, Inc.’s December 31, 2011 annual report:

 

 

Income statement

Balance sheet

 

 

12/31/11

12/31/10

Sales revenue

$80,000

 

 

Unearned revenue

 

$5,000

$9,000

Insurance expense

$20,000

 

 

Prepaid insurance

 

$3,000

$2,000

Note: Avatar always collects cash from its customers in advance.

 

Cash collected from customers on Avatar, Inc.’s statement of cash flows equals ________.

A) $80,000

B) $89,000

C) $84,000

D) $76,000

 

8) The following information is from Avatar, Inc.’s December 31, 2011 annual report:

 

 

Income statement

Balance sheet

 

 

12/31/11

12/31/10

Sales revenue

$80,000

 

 

Unearned revenue

 

$5,000

$9,000

Insurance expense

$20,000

 

 

Prepaid insurance

 

$3,000

$2,000

Note: Avatar always collects cash from its customers in advance.

 

Cash paid for insurance on Avatar, Inc.’s statement of cash flows equals ________.

A) $23,000

B) $22,000

C) $21,000

D) $19,000

9) The following information is from Z, Inc.’s December 31, 2011 annual report:

 

 

Income statement

Balance sheet

 

 

12/31/10

12/31/11

Sales revenue

$800,000

 

 

Unearned revenue

 

$8,000

$10,000

Interest expense

$30,000

 

 

Interest payable

 

$1,000

$3,000

Note: Z, Inc. does not sell to its customers on account; it collects cash from its customers in advance.

 

Cash collected from customers on Z, Inc.’s statement of cash flows equals ________.

A) $800,000

B) $802,000

C) $798,000

D) $810,000

 

10) The following information is from Z, Inc.’s December 31, 2011 annual report:

 

 

Income statement

Balance sheet

 

 

12/31/10

12/31/11

Sales revenue

$800,000

 

 

Unearned revenue

 

$8,000

$10,000

Interest expense

$30,000

 

 

Interest payable

 

$1,000

$3,000

Note: Z, Inc. does not sell to its customers on account; it collects cash from its customers in advance.

 

Cash paid for interest on Z, Inc.’s statement of cash flows equals ________.

A) $30,000

B) $28,000

C) $33,000

D) $32,000

 

 

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