Question : 111. Accounts receivable arising from sales to customers amounted to $40,000 : 1246647

111. Accounts receivable arising from sales to customers amounted to $40,000 and $31,000 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. $129,000.C. $151,000.D. $111,000.

112. 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.

113. 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.

114. Rogers 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 $8,000 was recorded.  Net cash provided by operating activities for the year is A. $53,000.B. $47,000.C. $33,000D. $37,000.

115. On the statement of cash flows, the cash flows from operating activities section would include  A. receipts from the issuance of capital stockB. payment for interest on short-term notes payableC. payments for the acquisition of investmentsD. payments for cash dividends

116. 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. $49,000B. $47,000C. $51,000D. $53,000

117. 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. $700,000B. $600,000C. $580,000D. $620,000

118. 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. $353,000B. $413,000C. $447,000D. $383,000

119. Use the following selected account balances from the financial statements of the Washington Company to answer Questions 68 and 69: 

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 Goods Sold

31,000

The Washington Company uses the direct method to calculate net cash flow from operating activities. Cash collections from customers are A. $56,000B. $52,000C. $60,000D. $45,000

120. Use the following selected account balances from the financial statements of the Washington Company to answer Questions 68 and 69: 

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 Goods Sold

31,000

The Washington Company uses the direct method to calculate net cash flow from operating activities. Cash paid to suppliers is A. $39,000B. $33,000C. $29,000D. $23,000

121. Income tax was $400,000 for the year.  Income tax payable was $30,000 and $40,000 at the beginning and end of the year.  Cash payments for income tax reported on the cash flow statement using the direct method is  A. $400,000B. $390,000C. $430,000D. $440,000

122. Free cash flow is  A. all cash in the bankB. cash from operationsC. cash from financing, less cash used to purchase fixed assets to maintain productive capacity and cash used for dividendsD. cash flow from operations, less cash used to purchase fixed assets to maintain productive capacity and cash used for dividends

123. Free cash flow is cash from operations, less cash for  A. dividends and cash for fixed assets needed to maintain productivityB. dividends and cash to redeem bonds payableC. fixed assets needed to maintain productivityD. dividends, cash for fixed assets needed to maintain productivity, and cash to redeem bonds payable

124. The cost of merchandise sold during the year was $45,000.  Merchandise inventories were $13,500 and $10,500 at the beginning and end of the year, respectively.  Accounts payable were $7,000 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. $46,000B. $44,000C. $50,000D. $40,000