Question : 79.When equipment purchased entirely through a loan: A. The equipment shown as : 1259493

 

 

79.When equipment is purchased entirely through a loan:   

A. The equipment is shown as an increase in the investing activities section.

 

B. The equipment is shown as a decrease in the investing activities section.

 

C. The loan is shown as an increase in the financing section.

 

D. Neither the loan nor the purchase of equipment is shown in the investing or the financing sections.

 

 

 

 

80.In 2015, Anderson Company purchased equipment for $363,000 and also sold some special purpose machinery with a book value of $155,000 for $182,000. In its statement of cash flows for 2015, Anderson should report the following with respect to the above transactions:   

A. $363,000 net cash used by investing activities.

 

B. $181,000 net cash used by investing activities; $27,000 net cash provided by operating activities.

 

C. $181,000 net cash used by investing activities.

 

D. $363,000 cash used by investing activities; $182,000 cash provided by financing activities.

 

 

 

81.Refer to the information above. The amount of cash paid by Korman Corporation in 2015 for the purchase of marketable securities was:   

A. $240,000.

 

B. $160,000.

 

C. $200,000.

 

D. $190,000.

 

 

 

 

82.Refer to the information above. The cash proceeds received by Korman Corporation in 2015 for the sale of marketable securities was:   

A. $160,000.

 

B. $230,000.

 

C. $240,000.

 

D. $280,000.

 

 

 

83.Refer to the information above. How should the transactions involving marketable securities be classified in Korman’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.

 

 

 

 

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

A. $80,000 net cash used by investing activities.

 

B. $80,000 net cash provided by investing activities.

 

C. $120,000 net cash provided by investing activities.

 

D. $240,000 net cash provided by investing activities.

 

 

 

 

85.Refer to the information above. Compute the amount of cash received from customers during the current year.   

A. $1,548,750.

 

B. $1,564,500.

 

C. $1,533,000.

 

D. $1,806,000.

 

 

 

86.Refer to the information above. Compute the amount of cash payments for purchases of merchandise during the current year.   

A. $813,750.

 

B. $811,125.

 

C. $819,000.

 

D. $1,078,875.

 

 

 

87.Refer to the information above. Compute the amount of cash payments for operating expenses.   

A. $138,600.

 

B. $141,750.

 

C. $189,000.

 

D. $174,825.

 

 

 

88.Refer to the information above. Net cash flow from operating activities for the current year is:   

A. $595,875.

 

B. $596,400.

 

C. $556,500.

 

D. $580,125.