Question :
96.When using the indirect method to calculate and report the : 1258388
96.When using the indirect method to calculate and report the net cash provided or used by operating activities, net income is adjusted for all but which of the following?
A. Gains and losses from nonoperating items.
B. Revenues and expenses that did not provide or use cash.
C. Changes in noncurrent assets and noncurrent liabilities.
D. Changes in current liabilities related to operating activities.
E. Depreciation and amortization expense.
97.When using the indirect method to calculate and report net cash provided or used by operating activities, which of the following is subtracted from net income?
A. Decrease in income taxes payable.
B. Depreciation expense.
C. Amortization of intangible assets.
D. Bad debts expense.
E. Decrease in merchandise inventory.
98.The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:
A. Cash.
B. Cash received from customers.
C. Increase (decrease) in accounts receivable.
D. Net income.
E. Adjustments to net income.
99.When preparing a statement of cash flows using the indirect method, each of the following should be classified as an operating cash flow except:
A. An increase in accounts receivable.
B. A decrease in accounts payable.
C. Proceeds from the disposal of a long-term asset with no gain or loss.
D. An increase in prepaid expenses.
E. A decrease in accrued expenses payable.
100.A company’s Inventory balance at 12/31/16 was $188,000 and $200,000 at 12/31/15. Its Accounts Payable balance at 12/31/16 was $84,000 and $80,000 at 12/31/15, and its cost of goods sold for 2016 was $720,000. The company’s total amount of cash payments for merchandise in 2016 equals:
A. $704,000.
B. $712,000.
C. $720,000.
D. $728,000.
E. $736,000.
101.Use the following information to calculate cash paid for wages and salaries:
Salaries expense$168,000
Salaries payable, January 16,400
Salaries payable, December 3110,600
A. $157,400.
B. $163,800.
C. $168,000.
D. $172,200.
E. $174,400.
102.Use the following information to calculate cash paid for income taxes:
Income tax expense$43,000
Income tax payable, January 19,100
Income tax payable, December 3110,200
A. $23,700.
B. $52,100.
C. $53,200.
D. $41,900.
E. $43,000.
103.Use the following information about the current year’s operations of a company to calculate the cash paid for merchandise.
Cost of goods sold.$226,000
Merchandise inventory, January 1.54,800
Merchandise inventory, December 31.57,400
Accounts payable, January 1.54,400
Accounts payable, December 31.59,800
A. $218,000.
B. $223,200.
C. $220,000.
D. $228,800.
E. $234,000.
104.Use the following information about the current year’s operations of a company to calculate the cash paid for merchandise.
A. $727,000.
B. $726,300.
C. $732,700.
D. $737,300.
E. $737,700.
105.When preparing a statement of cash flows using the indirect method, which of the following is correct?
A. Proceeds from the sale of equipment should be added to net income in the operating activities section.
B. A loss on the sale of land should be added to net income in the operating activities section.
C. The declaration of a cash dividend should be a use of cash in the financing activities section.
D. The issuance of a stock dividend should be a use of cash in the financing activities section.
E. The purchase of land and a building by issuing a long-term note payable should be a source of cash in the financing activities section.
