Question : 21. Given the following events, which ones affect cash flows from : 1291649

21. Given the following events, which ones affect cash flows from financing activities? 

1.

Collection from issuing capital stock

2.

Payment of a dividend

3.

Purchases of property, plant, and equipment

4.

Collection from the sale of property, plant, and equipment

 A. 1 and 2B. 3 and 4C. 2 and 4D. 1, 2, 3, and 4

22. Which of the following statements is true about the indirect method of preparing the operating activities section on a statement of cash flows? A. It adjusts cash basis net income to accrual basis net income.B. It adjusts accrual basis net income to cash provided by operating activities.C. It adjusts accrual basis net income to budgeted net income.D. It adjusts cash basis net income to budgeted net income.

23. Chatham Corp. reported sales revenue of $98,000 on their income statement for 2011. From the beginning until the end of 2011, accounts receivables decreased by a net amount of $9,000. How much “cash collections from customers” should Chatham report for 2011 on their statement of cash flows? A. $  98,000B. $  89,000C. $    9,000D. $107,000

24. Generally accepted accounting principles allows which of the following methods of preparing the statement of cash flows? A. The operating, investing, and financing methods.B. The accrual basis and cash basis of accounting methods.C. The direct and indirect methods.D. The cash flows and noncash flows methods.

25. Burke Inc.’s accounts receivable balance increased during the year from $300,000 to $360,000. Based on this information, which of the following statements is true? A. Cash received from customers was greater than sales revenue recorded during the year.B. Cash received from customers was less than sales revenue recorded during the year.C. Cash received from customers was exactly equal to sales revenue recorded during the year.D. Cash received from customers was higher than cash paid to suppliers during the year.

26. The difference between the direct method and the indirect methods of preparing the statement of cash flows is primarily visible in which of the following sections? A. Operating activities section onlyB. Investing activities section onlyC. Both operating and investing activitiesD. Both investing and financing activities

27. Paxton Inc. had the following information related to last year’s sales: 

Cash sales

$150,000

Credit sales

280,000

Accounts receivable – beginning

30,000

Accounts receivable – ending

56,000

What amount would be reported as “cash collections from customers” on the statement of cash flows using the direct method? A. $404,000B. $176,000C. $516,000D. $306,000

28. Culpepper Inc. had the following information related to last year’s sales: 

Cash sales

$245,000

Credit sales

150,000

Accounts receivable – beginning

21,500

Accounts receivable – ending

15,000

What amount would be reported as “cash collections from customers” on the statement of cash flows using the direct method? A. $238,500B. $431,500C. $401,500D. $143,500

29. Pomander Inc. had the following information related to last year’s sales: 

Cash sales

$107,500

Credit sales

250,000

Accounts receivable – beginning

10,000

Accounts receivable – ending

14,000

What amount would be reported as “cash collections from customers” on the statement of cash flows using the direct method? A. $254,000B. $381,500C. $111,500D. $353,500

30. Jazzy Inc. reported sales revenue of $550,000 on their income statement for 2011. From the beginning until the end of 2011, accounts receivables increased by a net amount of $35,000. How much “cash collections from customers” should Jazzy report for 2011 on their statement of cash flows? A. $550,000B. $585,000C. $515,000D. $  35,000