Question :
101.DR Electric Supply reported interest expense of $6,300 for the : 1302924
101.DR Electric Supply reported interest expense of $6,300 for the year. Interest payable was $780 and $920 at the beginning and the end of the year, respectively. How much cash did DR Electric Supply pay for interest during the year?
A.$6,160
B.$6,440
C.$7,080
D.$5,380
102.Wellington Cabinets sells its merchandise on account. The company has provided the following information for 2014 and 2013:
20142013
Accounts receivable $ 125,000 $ 132,000
Sales 1,800,000 1,650,000
How much cash did Wellington Cabinets collect from customers during 2014?
A.$1,925,000
B.$1,807,000
C.$1,793,000
D.$157,000
103.The following amounts are taken from Wellington Cabinets’ financial statements:
20132014
Merchandise inventory $ 600,000 $ 700,000
Accounts payable 70,000 110,000
Cost of goods sold 3,100,000 4,200,000
The company uses accounts payable only for purchases of merchandise inventory. What amount of cash did Wellington Cabinets pay to for inventory during 2014?
A.$4,060,000
B.$4,340,000
C.$1,240,000
D.$4,260,000
104.The following amounts were provided by Brighthouse Lighting for the 2014:
Beginning retained earnings $650,000
Ending retained earnings 630,000
Cash provided by operations 2,240,000
Net income for 2014 2,160,000
How much will Brighthouse report on it statement of cash flows for ‘dividends paid’ during 2014?
A.$2,260,000
B.$2,180,000
C.$2,810,000
D.$2,140,000
105.Marquette Décor is a merchandiser that operates a small retail store. Comparative balance sheets for the years ending December 31, 2014 and 2013 and its income statement for 2014 follow:
December 31
Assets 20142013
Cash$ 35,400$ 45,300
Accounts receivable11,40014,500
Merchandise inventories36,50034,100
Equipment90,00066,000
Accumulated depreciation(28,600)(31,400)
Total assets$144,700 $128,500
Liabilities and Stockholders’ Equity
Accounts payable$ 14,300$ 12,500
Income taxes payable4,5008,800
Long-term notes payable16,50023,000
Common stock, $2 par88,20065,300
Retained earnings21,200 18,900
Total liabilities and stockholders’ equity$144,700 $128,500
Sales
$224,000
Cost of goods sold123,000
Depreciation expense14,000
Other expenses56,000
Gain on sale of equipment3,400
Income taxes16,000
Net income$ 18,400
During the year, equipment with an original cost of $17,000, and accumulated depreciation totaling $16,800 was sold for $3,600. Dividends were declared and paid during the year. How much cash was used to acquire new equipment during 2014?
A.$3,600
B.$27,600
C.$41,000
D.$24,000
106.Marquette Décor is a merchandiser that operates a small retail store. Comparative balance sheets for the years ending December 31, 2014 and 2013 and its income statement for 2014 follow:
December 31
Assets 20142013
Cash$ 35,400$ 45,300
Accounts receivable11,40014,500
Merchandise inventories36,50034,100
Equipment90,00066,000
Accumulated depreciation(28,600)(31,400)
Total assets$144,700 $128,500
Liabilities and Stockholders’ Equity
Accounts payable$ 14,300$ 12,500
Income taxes payable4,5008,800
Long-term notes payable16,50023,000
Common stock, $2 par88,20065,300
Retained earnings21,200 18,900
Total liabilities and stockholders’ equity$144,700 $128,500
Sales
$224,000
Cost of goods sold123,000
Depreciation expense14,000
Other expenses56,000
Gain on sale of equipment3,400
Income taxes16,000
Net income$ 18,400
During the year, equipment with an original cost of $17,000, and accumulated depreciation totaling $16,800 was sold for $3,600. Dividends were declared and paid during the year. How much is the net increase or decrease in cash and cash equivalents during 2014?
A.$63,700 increase
B.$9,900 decrease
C.$35,400 decrease
D.$16,200 increase
107.Marquette Décor is a merchandiser that operates a small retail store. Comparative balance sheets for the years ending December 31, 2014 and 2013 and its income statement for 2014 follow:
December 31
Assets 20142013
Cash$ 35,400$ 45,300
Accounts receivable11,40014,500
Merchandise inventories36,50034,100
Equipment90,00066,000
Accumulated depreciation(28,600)(31,400)
Total assets$144,700 $128,500
Liabilities and Stockholders’ Equity
Accounts payable$ 14,300$ 12,500
Income taxes payable4,5008,800
Long-term notes payable16,50023,000
Common stock, $2 par88,20065,300
Retained earnings21,200 18,900
Total liabilities and stockholders’ equity$144,700 $128,500
Sales
$224,000
Cost of goods sold123,000
Depreciation expense14,000
Other expenses56,000
Gain on sale of equipment3,400
Income taxes16,000
Net income$ 18,400
During the year, equipment with an original cost of $17,000, and accumulated depreciation totaling $16,800 was sold for $3,600. Dividends were declared and paid during the year. How much cash was received from the issuance of stock during 2014?
A.$88,200
B.$22,900
C.$11,450
D.$25,200
108.Marquette Décor is a merchandiser that operates a small retail store. Comparative balance sheets for the years ending December 31, 2014 and 2013 and its income statement for 2014 follow:
December 31
Assets 20142013
Cash$ 35,400$ 45,300
Accounts receivable11,40014,500
Merchandise inventories36,50034,100
Equipment90,00066,000
Accumulated depreciation(28,600)(31,400)
Total assets$144,700 $128,500
Liabilities and Stockholders’ Equity
Accounts payable$ 14,300$ 12,500
Income taxes payable4,5008,800
Long-term notes payable16,50023,000
Common stock, $2 par88,20065,300
Retained earnings21,200 18,900
Total liabilities and stockholders’ equity$144,700 $128,500
Sales
$224,000
Cost of goods sold123,000
Depreciation expense14,000
Other expenses56,000
Gain on sale of equipment3,400
Income taxes16,000
Net income$ 18,400
During the year, equipment with an original cost of $17,000, and accumulated depreciation totaling $16,800 was sold for $3,600. Dividends were declared and paid during the year. How much cash was paid for income taxes during 2014?
A.$20,300
B.$11,700
C.$30,300
D.$16,000
109.Marquette Décor is a merchandiser that operates a small retail store. Comparative balance sheets for the years ending December 31, 2014 and 2013 and its income statement for 2014 follow:
December 31
Assets 20142013
Cash$ 35,400$ 45,300
Accounts receivable11,40014,500
Merchandise inventories36,50034,100
Equipment90,00066,000
Accumulated depreciation(28,600)(31,400)
Total assets$144,700 $128,500
Liabilities and Stockholders’ Equity
Accounts payable$ 14,300$ 12,500
Income taxes payable4,5008,800
Long-term notes payable16,50023,000
Common stock, $2 par88,20065,300
Retained earnings21,200 18,900
Total liabilities and stockholders’ equity$144,700 $128,500
Sales
$224,000
Cost of goods sold123,000
Depreciation expense14,000
Other expenses56,000
Gain on sale of equipment3,400
Income taxes16,000
Net income$ 18,400
During the year, equipment with an original cost of $17,000, and accumulated depreciation totaling $16,800 was sold for $3,600. Dividends were declared and paid during the year. How much cash was provided/(used) by financing activities in 2014?
A.$6,800
B.$14,100
C.$16,400
D.$300
110.Marquette Décor is a merchandiser that operates a small retail store. Comparative balance sheets for the years ending December 31, 2014 and 2013 and its income statement for 2014 follow:
December 31
Assets 20142013
Cash$ 35,400$ 45,300
Accounts receivable11,40014,500
Merchandise inventories36,50034,100
Equipment90,00066,000
Accumulated depreciation(28,600)(31,400)
Total assets$144,700 $128,500
Liabilities and Stockholders’ Equity
Accounts payable$ 14,300$ 12,500
Income taxes payable4,5008,800
Long-term notes payable16,50023,000
Common stock, $2 par88,20065,300
Retained earnings21,200 18,900
Total liabilities and stockholders’ equity$144,700 $128,500
Sales
$224,000
Cost of goods sold123,000
Depreciation expense14,000
Other expenses56,000
Gain on sale of equipment3,400
Income taxes16,000
Net income$ 18,400
During the year, equipment with an original cost of $17,000, and accumulated depreciation totaling $16,800 was sold for $3,600. Dividends were declared and paid during the year. How much cash was paid for dividends during 2014?
A.$20,700
B.$2,800
C.$2,300
D.$16,100
111.Marquette Décor is a merchandiser that operates a small retail store. Comparative balance sheets for the years ending December 31, 2014 and 2013 and its income statement for 2014 follow:
December 31
Assets 20142013
Cash$ 35,400$ 45,300
Accounts receivable11,40014,500
Merchandise inventories36,50034,100
Equipment90,00066,000
Accumulated depreciation(28,600)(31,400)
Total assets$144,700 $128,500
Liabilities and Stockholders’ Equity
Accounts payable$ 14,300$ 12,500
Income taxes payable4,5008,800
Long-term notes payable16,50023,000
Common stock, $2 par88,20065,300
Retained earnings21,200 18,900
Total liabilities and stockholders’ equity$144,700 $128,500
Sales
$224,000
Cost of goods sold123,000
Depreciation expense14,000
Other expenses56,000
Gain on sale of equipment3,400
Income taxes16,000
Net income$ 18,400
During the year, equipment with an original cost of $17,000, and accumulated depreciation totaling $16,800 was sold for $3,600. Dividends were declared and paid during the year. How much is the net cash provided/(used) by investing activities during 2014?
A.($37,400)
B.$3,600
C.($20,400)
D.None of the answer choices are correct.
112.Which of the following is subtracted from net income under the indirect method to determine net cash provided/(used) by operating activities?
A.Loss on sale of equipment
B.Decrease in prepaid insurance
C.Increase in merchandise inventory
D.Increase in accounts payable
113.Which of the following is not an addition to net income when determining the cash flows from operating activity under the indirect method?
A.Depreciation
B.Gain on sale of equipment
C.Decrease in accounts receivable
D.Increase in wages payable
114.Tropical Splendor’s statement of cash flows showed the following totals:
Cash provided/(used) by operating activities $ 54,000
Cash provided/(used) by financing activities 21,100
Cash provided/(used) by investing activities (49,000)
Which statement most likely explains what occurred during the year?
A.Tropical Splendor is using cash from operations and selling long-term assets to pay back loans.
B.Tropical Splendor is using cash from operations and borrowing money from the bank to buy long-term assets.
C.Tropical Splendor is using its profits and selling plant assets in order to repay debt.
D.Tropical Splendor is using money from the sale of long-term assets to fund its operations and to repay debt.
