MULTIPLE CHOICE
31.What primary information is provided in the statement of cash flows?
A.The amount of profits earned during a period
B.The source and uses of a company’s money
C.Estimates of future cash flows
D.Cash receipts and cash payments of an entity’s profitable activities during a period
32.Which one of the following is an important reason to evaluate a company’s cash flow?
A.Without positive cash flows, a company is unable to recognize a positive net income.
B.Minimum cash balances must be maintained by all companies.
C.Stockholders want to know that the company can generate cash consistent with earning a reasonable return on their investments.
D.Creditors want to be assured that the company has significant cash inflows from financing activities.
33.Watley Surf Shop provided the following information for the current year:
Proceeds from sale of equipment $120,000
Dividends paid to stockholders 16,000
Purchase of inventories on account 92,000
Borrowing a long-term loan 60,000
Loan principal payments made14,000
Interest paid on loan payments 1,000
Purchase of land for cash 65,000
Payment for inventory previously acquired on account 85,000
Cash collected from customers 450,000
How much is the net cash provided/(used) by investing activities during the year?
A.$55,000
B.$115,000
C.$100,000
D.$40,000
34.Watley Surf Shop provided the following information for the current year:
Proceeds from sale of equipment $120,000
Dividends paid to stockholders 16,000
Purchase of inventories on account 92,000
Borrowing a long-term loan 60,000
Loan principal payments made 14,000
Interest paid on loan payments 1,000
Purchase of land for cash 65,000
Payment for inventory previously acquired on account 85,000
Cash collected from customers 450,000
How much is the net cash provided/(used) by financing activities during the year?
A. $29,000
B.($56,000)
C.($90,000)
D.$30,000
35.Randolph Retail reported the following results during 2014:
Cash collected from accounts receivable $56,000
Cash paid to purchase office supplies 2,000
Cash collected from customers for current period sales 98,000
Cash paid for dividends 12,000
Cash paid for inventory acquisitions 87,000
Cash collected from the issuance of common stock 50,000
Cash paid to purchase equipment with a 5-year life 80,000
How much is the company’s net cash provided by operating activities?
A.$23,000
B.$103,000
C.$65,000
D.$53,000
36.Speedy Supermarket reported net income of $24,000 in 2014. No dividends were declared nor paid during the year. Changes in the selected accounts during the year are:
Increase/(Decrease)
Accounts receivable $16,200
Inventory 11,800
Prepaid expenses (4,000)
Accounts payable 27,300
Salaries payable (3,000)
How much is the company’s net cash provided by operating activities?
A.$24,300
B.$72,300
C.$300
D.$48,300
37.Harnett Enterprises had a net loss of $14,000 in 2014. Dividends of $15,000 were declared and paid during the year and the company reported depreciation expense of $15,000. Changes in the following selected accounts occurred during the year:
Increase/(Decrease)
Accounts receivable ($3,000)
Long-term investments 16,000
Interest payable (2,000)
Notes payable 65,000
Property, plant, and equipment 42,000
No property, plant, and equipment items were sold during the year. How much is the company’s net cash provided/(used) by financing activities?
A.$2,000
B.($65,000)
C.($79,000)
D.($80,000)
38.Harnett Enterprises had a net loss of $14,000 in 2014. Dividends of $15,000 were declared and paid during the year and the company reported depreciation expense of $15,000. Changes in the following selected accounts occurred during the year:
Increase/(Decrease)
Accounts receivable ($3,000)
Long-term investments 16,000
Interest payable (2,000)
Notes payable 65,000
Property, plant, and equipment 42,000
No property, plant, and equipment were sold during the year. How much is the company’s net cash provided(used) by investing activities?
A.$7,000
B.$60,000
C.$18,000
D.($58,000)
39.Marquette Décor is a merchandiser that operates a small retail store. Comparative balance sheets for the years ending December 31, 2014 and 2013 and its income statement for 2014 follow:
December 31
Assets 20142013
Cash$ 35,400$ 45,300
Accounts receivable11,40014,500
Merchandise inventories36,50034,100
Equipment90,00066,000
Accumulated depreciation(28,600)(31,400)
Total assets$144,700 $128,500
Liabilities and Stockholders’ Equity
Accounts payable$ 14,300$ 12,500
Income taxes payable4,5008,800
Long-term notes payable16,50023,000
Common stock, $2 par88,20065,300
Retained earnings21,200 18,900
Total liabilities and stockholders’ equity$144,700 $128,500
Sales
$224,000
Cost of goods sold123,000
Depreciation expense14,000
Other expenses56,000
Gain on sale of equipment3,400
Income taxes16,000
Net income$ 18,400
During the year, equipment with an original cost of $17,000, and accumulated depreciation totaling $16,800 was sold for $3,600. Dividends were declared and paid during the year. How much cash did Marquette collect from customers during the year?
A.$227,100
B.$224,000
C.$235,400
D.$220,900
40.Marquette Décor is a merchandiser that operates a small retail store. Comparative balance sheets for the years ending December 31, 2014 and 2013 and its income statement for 2014 follow:
December 31
Assets 20142013
Cash$ 35,400$ 45,300
Accounts receivable11,40014,500
Merchandise inventories36,50034,100
Equipment90,00066,000
Accumulated depreciation(28,600)(31,400)
Total assets$144,700 $128,500
Liabilities and Stockholders’ Equity
Accounts payable$ 14,300$ 12,500
Income taxes payable4,5008,800
Long-term notes payable16,50023,000
Common stock, $2 par88,20065,300
Retained earnings21,200 18,900
Total liabilities and stockholders’ equity$144,700 $128,500
Sales
$224,000
Cost of goods sold123,000
Depreciation expense14,000
Other expenses56,000
Gain on sale of equipment3,400
Income taxes16,000
Net income$ 18,400
How much cash did Marquette pay for inventory purchases during the year?
A.$122,400
B.$125,400
C.$123,600
D.$118,800
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more