111. A corporation uses the Indirect Statement of Cash Flows. A fixed asset has been sold for $25,000 representing a gain of $2,750. The value in the Operations section regarding this event would be:
A. $25,000.
B. $2,750.
C. $27,750.
D. Some other value.
112. Accounts receivable arising from sales to customers amounted to $40,000 and $35,000 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. $125,000.
C. $155,000.
D. $115,000.
113. 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.
114. In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is
A. added to net income.
B. deducted from net income.
C. ignored because it does not affect cash.
D. not reported on a statement of cash flows.
115. Filton Company reported net income of $35,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is
A. $50,000.
B. $34,000.
C. $35,000
D. $30,000.
116. On the statement of cash flows, the cash flows from operating activities section would include
A. receipts from the issuance of capital stock
B. payment for interest on short-term notes payable
C. payments for the acquisition of investments
D. payments for cash dividends
117. The cost of merchandise sold during the year was $50,000. Merchandise inventories were $12,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable were $6,000 and $5,000 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total
A. $49,000
B. $47,000
C. $51,000
D. $53,000
118. Sales for the year were $600,000. Accounts receivable were $100,000 and $80,000 at the beginning and end of the year. Cash received from customers to be reported on the cash flow statement using the direct method is
A. $700,000
B. $600,000
C. $580,000
D. $620,000
119. Operating expenses other than depreciation for the year were $400,000. Prepaid expenses increased by $17,000 and accrued expenses decreased by $30,000 during the year. Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be
A. $353,000
B. $413,000
C. $447,000
D. $383,000
120. The following selected account balances appeared on the financial statements of the Franklin Company:
Accounts Receivable, Jan. 1
$13,000
Accounts Receivable, Dec. 31
9,000
Accounts Payable, Jan 1
4,000
Accounts payable Dec. 31
7,000
Merchandise Inventory, Jan 1
10,000
Merchandise Inventory, Dec 31
15,000
Sales
56,000
Cost of Merchandise Sold
31,000
The Franklin Company uses the direct method to calculate net cash flow from operating activities.
Cash collections from customers are
A. $56,000
B. $52,000
C. $60,000
D. $45,000
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