Question :
11. Price Corporation reported a $1,800 balance in accounts receivable January : 1208121
11. Price Corporation reported a $1,800 balance in accounts receivable on January 1, 2012. During the year, $12,400 of sales on account were made. During the year, Price wrote off accounts receivable of $850 as uncollectible. If the ending balance of accounts receivable is $1,000, what is the amount of cash received from customers?
A. $10,600
B. $10,750
C. $12,350
D. $14,200
12. Bridges Company pays cash for all inventory purchases. Bridges reports that it had a beginning inventory of $1,250 and an ending inventory of $450. Its cost of goods sold was $2,750. Based on this information, the amount of cash paid for inventory purchases was:
A. $700
B. $3,550
C. $1,950
D. $4,950
13. The following beginning and ending balances were drawn from the records of Graves Co.
If Graves Co. sold equipment that had an original cost of $300 and accumulated depreciation of $150 for $125, how much did Graves pay for new equipment?
A. $125
B. $100
C. $150
D. $275
14. The Updike Company reported a beginning balance of $800 and an ending balance of $1,100 in its unearned revenue account for 2012. During the year, $4,000 of revenue was recognized. Based on this information, how much cash was received from customers?
A. $4,000
B. $4,100
C. $4,300
D. $4,500
15. Bella, Inc. had beginning and ending accounts payable balances of $800 and $900, respectively. Inventory had beginning and ending balances of $900 and $850, respectively. If cost of goods sold was $700, how much cash was spent to obtain inventory?
A. $500
B. $550
C. $700
D. $800
16. On January 1, 2012, the balance of Baldwin Corporation’s accounts receivable was $5,000. Sales on account for 2012 amounted to $40,000 and the ending balance of accounts receivable was $8,000. What is the amount of cash collected from customers?
A. $32,000
B. $37,000
C. $43,000
D. $45,000
17. The Li Corporation reported a beginning balance of $600 in its prepaid insurance account for 2012. During the year, a total of $8,000 was recognized as insurance expense and the prepaid insurance account had an ending balance of $800. How much cash did Li pay for insurance during 2012?
A. $8,600
B. $8,200
C. $8,000
D. $7,400
18. The Valdez Corporation had a balance in its equipment account on January 1, 2012 of $325,000. During the year, equipment originally costing $85,000 and having accumulated depreciation of $20,000, was sold for $67,000. The ending balance of the equipment account was $275,000. How much additional equipment was purchased during 2012?
A. $20,000
B. $35,000
C. $85,000
D. $87,000
19. The Knight Company reported depreciation expense of $5,000 and net income of $8,000 on its 2012 income statement. During 2012 the company’s accounts receivable balance decreased by $2,000. Based on this information, what was the amount of cash flow from operating activities?
A. $6,000.
B. $8,000.
C. $15,000.
D. $16,000.
20. Sharon Associates uses the indirect method for preparing the statement of cash flows. The following accounts and balances were drawn from the company’s accounting records:
Net income for the period was $21,000. The net cash flows from operating activities equals:
A. $17,400.
B. $18,600.
C. $20,000.
D. $24,600.
