Question : 91.Refer to the information above. How should the transactions involving : 1237493

 

 

91.Refer to the information above. How should the transactions involving marketable securities be classified in Kenny’s statement of cash flows for 2015?   

A. The purchase of marketable securities, sales of marketable securities, and receipt of dividends are all classified as investing activities.

 

B. The purchase and the sale of marketable securities are classified as investing activities; the receipt of dividends is classified as an operating activity.

 

C. The purchase of marketable securities is classified as an investing activity; the sale of marketable securities is classified as a financing activity; the receipt of dividends is classified as an operating activity.

 

D. The purchase and the sale of marketable securities are classified as investing activities; the receipt of dividends is classified as a financing activity.

 

 

 

 

92.Refer to the information above. Based solely on the above information, Kenny’s net cash flow from investing activities for 2015 is:   

A. $215,000 net cash used by investing activities.

 

B. $165,000 net cash provided by investing activities.

 

C. $265,000 net cash used by investing activities.

 

D. $290,000 net cash provided by investing activities.

$445,000 – $180,000 = $265,000

 

 

 

An analysis of changes in selected balance sheet accounts of Johnson Corporation shows the following for the current year:  Johnson’s income statement for the current year includes a $14,000 loss on disposal of plant assets. All payments and proceeds relating to purchase or sale of plant assets were in cash.

 

93.Refer to the information above. The amount of cash paid by Johnson to acquire plant assets during the current year was:   

A. $53,000.

 

B. $267,000.

 

C. $42,000.

 

D. $160,000.

 

 

 

 

94.Refer to the information above. Total cash proceeds received by Johnson from sales of plant assets during the current year amounted to:   

A. $13,000.

 

B. $104,000.

 

C. $195,000.

 

D. $41,000.

$118,000 – $91,000 – $14,000 = $13,000

 

 

 

95.Refer to the information above. How should purchases, sales, and depreciation of plant assets be classified in Johnson’s statement of cash flows for the current year? (Assume the direct method is used by Johnson.)   

A. Purchases of plant assets are classified as investing activities; sales of plant assets are classified as financing activities; depreciation is classified as an operating activity.

 

B. Purchases of plant assets and depreciation are classified as investing activities; sales of plant assets are classified as financing activities.

 

C. Purchases and sales of plant assets are classified as investing activities; depreciation does not appear as an operating, financing, or investing activity.

 

D. Since plant assets are used to generate income from operations, purchases, sales, and depreciation of plant assets are all classified as operating activities.

 

 

 

 

96.Refer to the information above. Based solely on the data provided above, Johnson’s net cash flow from investing activities for the current year is:   

A. $160,000 net cash used by investing activities.

 

B. $147,000 net cash used by investing activities.

 

C. $13,000 net cash provided by investing activities.

 

D. $91,000 net cash used by investing activities.

$160,000 – $13,000 = $147,000

 

 

 

An analysis of changes in selected balance sheet accounts of Hierarchy Corporation shows the following for the current year:  Hierarchy’s income statement for the current year includes a $9,600 gain on disposal of plant assets. All payments and proceeds relating to purchase or sale of plant assets were in cash.

 

97.Refer to the information above. The amount of cash paid by Hierarchy to acquire plant assets during the current year was:   

A. $252,000.

 

B. $504,000.

 

C. $724,000.

 

D. $768,000.

 

 

 

 

98.Refer to the information above. Total cash proceeds received by Hierarchy from sales of plant assets during the current year amounted to:   

A. $696,000.

 

B. $705,600.

 

C. $633,600.

 

D. $768,000.

$768,000 + $9,600 – $72,000 = $705,600

 

 

 

99.Refer to the information above. How should purchases, sales, and depreciation of plant assets be classified in Hierarchy’s statement of cash flows for the current year? (Assume the direct method is used by Hierarchy.)   

A. Purchases of plant assets are classified as operating activities; sales of plant assets are classified as financing activities; depreciation is classified as an operating activity.

 

B. Purchases of plant assets and depreciation are classified as investing activities; sales of plant assets are classified as operating activities.

 

C. Purchases and sales of plant assets are classified as investing activities; depreciation does not appear as an operating, financing, or investing activity.

 

D. Since plant assets are used to generate income from operations, purchases, sales, and depreciation of plant assets are all classified as operating activities.

 

 

 

 

100.Refer to the information above. Based solely on the data provided above, Hierarchy’s net cash flow from investing activities for the current year is:   

A. $264,000 net cash provided by investing activities.

 

B. $264,000 net cash used by investing activities.

 

C. $201,600 net cash provided by investing activities.

 

D. $1,200,000 net cash provided by investing activities.

$705,600 – $504,000 = $201,600