Question : 31. Felton Inc. had the following information related to last year’s : 1295738

 

 

31. Felton Inc. had the following information related to last year’s purchases: 

Cost of goods sold

$600,000

Accounts payable – beginning

25,000

Accounts payable – ending

40,000

 

 

What amount would be reported as “cash outflows for purchases” on the statement of cash flows using the direct method? A. $615,000B. $585,000C. $665,000D. $535,000

 

32. Crenshaw Inc. had the following information related to last year’s purchases: 

Cost of goods sold

$425,000

Accounts payable – beginning

18,000

Accounts payable – ending

10,000

 

 

What amount would be reported as “cash outflows for purchases” on the statement of cash flows using the direct method? A. $433,000B. $417,000C. $453,000D. $397,000

 

33. Haley Inc. had the following information related to last year’s purchases: 

Cost of goods sold

$190,000

Accounts payable – beginning

6,000

Accounts payable – ending

10,000

 

 

What amount would be reported as “cash outflows for purchases” on the statement of cash flows using the direct method? A. $174,000B. $194,000C. $206,000D. $186,000

 

34. Caldwell Corp. reported cost of goods sold of $700,000 on their income statement for 2008. From the beginning until the end of 2008, accounts payable decreased by a net amount of $75,000. How much “cash outflows for purchases” should Caldwell report for 2008 on their statement of cash flows? A. $  75,000B. $700,000C. $775,000D. $625,000

 

35. Simmons Inc. reported cost of goods sold of $900,000 on their income statement for 2008. From the beginning until the end of 2008, accounts payable increased by a net amount of $30,000. How much “cash outflows for purchases” should Simmons report for 2008 on their statement of cash flows? A. $  30,000B. $870,000C. $900,000D. $930,000

 

36. McClintock Inc. had the following information available from its 2008 balance sheet and income statement: 

Insurance expense

$40,000

Prepaid insurance – beginning

2,000

Prepaid insurance – ending

3,200

 

 

What amount would be reported as cash outflows for insurance on the statement of cash flows for 2008 using the direct method? A. $38,800B. $41,200C. $45,200D. $34,800

 

37. Peter Piper Inc. had the following information available from its 2008 balance sheet and income statement: 

Insurance expense

$55,000

Prepaid insurance – beginning

8,000

Prepaid insurance – ending

5,000

 

 

What amount would be reported as cash outflows for insurance on the statement of cash flows for 2008 using the direct method? A. $68,000B. $58,000C. $42,000D. $52,000

 

38. Tuffet Corporation had the following information available from its 2008 balance sheet and income statement: 

Interest expense

$25,000

Interest payable – beginning

3,000

Interest payable – ending

1,000

 

 

What amount would be reported as cash outflows for interest on the statement of cash flows for 2008 using the direct method? A. $27,000B. $29,000C. $21,000D. $23,000

 

39. Lineberger Corporation had the following information available from its 2008 balance sheet and income statement: 

Interest expense

$68,000

Interest payable – beginning

4,500

Interest payable – ending

8,000

 

 

What amount would be reported as cash outflows for interest on the statement of cash flows for 2008 using the direct method? A. $71,500B. $80,500C. $64,500D. $55,500

 

40. When using the indirect method of preparing a statement of cash flows, which of the following items would need to be added to net income in order to reconcile to cash provided by operating activities? A. Increase in accounts receivableB. Decrease in liabilitiesC. Depreciation expenseD. Increase in notes payable

 

 

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