Question :
102. The net income reported the income statement for the current : 1226757
102. The net income reported on the income statement for the current year was $250,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:
End
Beginning
Cash
$ 50,000
$ 60,000
Accounts receivable
112,000
108,000
Inventories
105,000
93,000
Prepaid expenses
4,500
6,500
Accounts payable (merchandise creditors)
75,000
89,000
What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? A. $271,000B. $279,000C. $327,000D. $256,000
103. The following information is available from the current period financial statements:
Net income
$165,000
Depreciation expense
28,000
Increase in accounts receivable
16,000
Decrease in accounts payable
21,000
The net cash flow from operating activities using the indirect method is A. $230,000B. $188,000C. $198,000D. $156,000
104. Cash dividends of $50,000 were declared during the year. Cash dividends payable were $10,000 and $20,000 at the beginning and end of the year, respectively. The amount of cash for the payment of dividends during the year is A. $40,000B. $50,000C. $70,000D. $60,000
105. Accounts receivable from sales to customers amounted to $40,000 and $32,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $110,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is A. $118,000.B. $110,000.C. $102,000.D. $150,000.
106. Baxter Company reported a net loss of $13,000 for the year ended December 31, 2010. During the year, accounts receivable decreased $5,000, merchandise inventory increased $8,000, accounts payable increased by $10,000, and depreciation expense of $4,000 was recorded. During 2010, operating activities A. provided net cash of $8,000.B. provided net cash of $2,000.C. used net cash of $8,000.D. used net cash of $2,000.
107. A company had net income of $252,000. Depreciation expense is $26,000. During the year, Accounts Receivable and Inventory increased $15,000 and $40,000, respectively. Prepaid Expenses and Accounts Payable decreased $2,000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. How much cash was provided by operating activities? A. $217,000.B. $224,000.C. $284,000.D. $305,000.
108. Discount Sales sells some used store fixtures. The acquisition cost of the fixtures is $12,500, the accumulated depreciation on these fixtures is $9,750 at the time of sale. The fixtures are sold for $4,500. The value of this transaction in the Investing section of the statement of cash flows is: A. $12,500B. $4,500C. $2,750D. $1,750
109. A corporation uses the Indirect Statement of Cash Flows. A fixed asset has been sold for $25,000 representing a gain of $3,750. The value in the operating activities section regarding this event would be: A. $25,000B. ($3,750)C. $28,750D. $3,750
110. Accounts receivable resulting from sales to customers amounted to $40,000 and $31,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is A. $120,000.B. $129,000.C. $151,000.D. $111,000.
111. If accounts payable have increased during a period A. revenues on an accrual basis are less than revenues on a cash basis.B. expenses on an accrual basis are less than expenses on a cash basis.C. expenses on an accrual basis are the same as expenses on a cash basis.D. expenses on an accrual basis are greater than expenses on a cash basis.
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