Question : 61. The income statement of Ride-on Motors, an automotive manufacturer, for : 1245643

61. The income statement of Ride-on Motors, an automotive manufacturer, for the year ended December 31, 20×1, reported revenues $7,400 million and cost of sales of $6,000 million. In addition, it reported other operating expenses of $900 million, a loss of $2 million on the sale of a business, and net financing income of $200 million. Tax expense for the year was $100 million. Compute the amount of net income or loss that Ride-on Motors reported for 20×1. 
A. net income of $198 million
B. net income of $698 million
C. net loss of $698 million
D. net income of $598 million
E. net loss of 598 million

62. The income statement of Peoples Motors Corporation, a U.S. automotive manufacturer, for the year ended December 31, 20×1, reported revenues of $207,000, cost of sales of $165,000, other operating expenses, including income taxes of $50,000, and net financing income, after taxes, of $6,000.  Compute the amount of net income or loss that Peoples Motors reported for 20×1.  
A. net income of $0
B. net income of $2,000
C. net loss of $2,000
D. net income of $8,000
E. net loss of $8,000

63. The balance sheet of Old Gold Mines for the year ended June 30, 20×2, showed a balance in retained earnings of $6,000 million at the end of 20×2 and $4,600 million at the end of 20×1. Net income for 20×2 was $2,400, million. Compute the amount of dividends Old Gold Mines declared during 20×2.  
A. $500 million
B. $1,000 million
C. $1,500 million
D. $2,000 million
E. $2,500 million

64. The balance sheet of Copper Industries, a producer of copper, showed retained earnings of $26,000 million at March 31, 20×1. At March 31, 20×2, the balance in retained earnings was $70,500 million . Copper declared dividends during the year ended March 31, 20×2, of $3,500 million. Compute Copper’s net income for the year ended March 31, 20×2 (fiscal 20×1).  
A. $41.000 million
B. $44.500 million
C. $48.000 million
D. $53.500 million
E. $58.000 million

65. The statement of cash flows for Goal Corporation, a U.S. retailer, for the year ended February 2, 20×2 (fiscal 20×1), showed a net cash inflow from operations of $4,100 million, a net cash outflow for investing of $6,200 million, and a net cash inflow for financing of $3,700 million. The balance sheet at February 3, 20×1, showed a balance in cash of $800 million. Compute the amount of cash on the balance sheet at February 2, 20×2.  
A. $800 million.
B. $1,600 million.
C. $2,400 million.
D. $3,200 million.
E. $4,700 million.

66. The statement of cash flows for Lights-On, a leading electric utility for the year ended December 31, 20×2, showed a net cash inflow from operations of $427,000 million and a net cash outflow for financing of $21,800 million. The comparative balance sheets showed a balance in cash of $32,700 at December 31, 20×1, and $101,200 at December 31, 20×2. Compute the net amount of cash provided or used by Lights-On’s investing activities for 20×2.  
A. $68,500 million provided
B. $271,300 million used
C. $372,500 million provided
D. $336,700 million used
E. $236,700 million used

67. In the United States, regulatory requirements applicable to publicly traded firms require the inclusion of  a(n) _____, in which management discusses operating results, liquidity (sources and uses of cash), capital resources, and reasons for changes in profitability and risk during the past year.  
A. Balance sheet or statement of financial position
B. Management’s Discussion and Analysis
C. Income statement or statement of profit and loss
D. Statement of cash flows.
E. Statement of shareholders’ equity.

68. _____ are economic resources with the potential to provide future economic benefits to a firm.  
A. Revenues
B. Expenses
C. Liabilities
D. Assets
E. Shareholder Equity

69. _____ are creditors’ claims for funds, usually because they have provided funds, or goods and services, to the firm.  
A. Revenues
B. Expenses
C. Liabilities
D. Assets
E. Shareholder Equity

70. _____ measure the inflows of assets (or reductions in liabilities) from selling goods and providing services to customers. 
A. Revenues
B. Expenses
C. Cash inflows
D. Cash-outflows
E. Shareholder equity