Question : 41. RM Company, a manufacturer, has provided the following information pertaining : 1228462

41. RM Company, a manufacturer, has provided the following information pertaining to its recent year of operation:
? Net income, $300,000;
? Accounts payable increased $24,000;
? Prepaid rent decreased $10,000;
? Depreciation expense was $35,000;
? Accounts receivable increased $34,000;
? Gain on sale of a building was $11,000;
? Wages payable decreased $21,000;
? Unearned revenue increased $44,000.
How much was RM’s net cash inflow from operating activities? 
A. $259,000
B. $327,000
C. $347,000
D. $358,000

42. GJ Company, a manufacturer, has provided the following information pertaining to its recent year of operation:
? Net income, $500,000;
? Accounts payable decreased $42,000;
? Prepaid assets increased $31,000;
? Depreciation expense was $53,000;
? Accounts receivable decreased $41,000;
? Loss on sale of a depreciable asset was $31,000;
? Wages payable increased $19,000;
? Unearned revenue decreased $31,000;
? Patent amortization expense was $5,000.
How much was GJ’s net cash inflow from operating activities? 
A. $545,000
B. $607,000
C. $514,000
D. $463,000

43. DJ Company, a manufacturer, has provided the following information pertaining to its recent year of operation:
? Cash flow from operating activities, $272,000;
? Accounts payable decreased $21,000;
? Prepaid assets increased $15,000;
? Depreciation expense was $27,000;
? Accounts receivable decreased $21,000;
? Loss on sale of a depreciable asset was $16,000;
? Wages payable increased $10,000;
? Unearned revenue decreased $16,000;
? Patent amortization expense was $10,000.
How much was DJ’s net income? 
A. $256,000
B. $210,000
C. $198,000
D. $240,000

44. KJ Company, a manufacturer, has provided the following information pertaining to its recent year of operation:
? Cash flow from operating activities, $136,000;
? Accounts payable increased $11,000;
? Prepaid assets decreased $8,000;
? Depreciation expense was $12,000;
? Accounts receivable increased $23,000;
? Loss on sale of a depreciable asset was $6,000;
? Wages payable decreased $9,000;
? Unearned revenue decreased $19,000;
? Patent amortization expense was $3,000.
How much was KJ’s net income? 
A. $185,000
B. $135,000
C. $147,000
D. $131,000

45. Which of the following would not be a cash flow from investing activities? 
A. Purchase of long-term investments.
B. Sale of a patent.
C. Collection of principal on a long-term note receivable.
D. Collection of interest revenue on a long-term note receivable.

46. Which of the following would not be a cash flow from financing activities? 
A. Issuance of common stock for cash.
B. Borrowing cash on a long-term note payable.
C. Collection of a cash dividend.
D. Repayment of principal on a long-term note payable.

47. Which of the following would not be considered a cash equivalent? 
A. A 30-day certificate of deposit.
B. A ten-year treasury note purchased over nine years ago, which matures in two months.
C. A three-month Treasury bill.
D. A ten-year Treasury note purchased two months before maturity.

48. Which of the following statements about the statement of cash flows is correct? 
A. A company with a net loss on the income statement will always have a net cash outflow from operating activities.
B. A purchase of equipment is classified as a cash inflow from investing activities.
C. Cash dividends received on stock investments are classified as cash flows from operating activities.
D. Cash dividends paid are classified as cash flows from operating activities.

49. Which of the following items about the statement of cash flows is correct? 
A. Non-cash expenses such as depreciation are deducted from net income with the indirect method in computing cash flows from operating activities.
B. Cash equivalents are highly liquid investments with maturities at the date of purchase of less than three months.
C. The acquisition of land by issuing bonds payable would not appear on the statement of cash flows.
D. Cash paid for interest would be classified as a financing cash flow.

50. Allen Company’s 2010 income statement reported total revenues, $850,000 and total expenses (including $40,000 depreciation) of $720,000. The 2009 balance sheet reported the following: accounts receivable—beginning balance, $50,000 and ending balance, $40,000; accounts payable—beginning balance, $22,000 and ending balance, $28,000. Therefore, based only on this information, how much was the 2010 net cash inflow from operating activities? 
A. $126,000
B. $166,000
C. $174,000
D. $186,000