Question : 86. A company had net cash flows from operations of : 1257704

86. A company had net cash flows from operations of $341,000, net income of $286,000 and average total assets of $1,850,000.  The cash flow on total assets ratio equals:
A. 83.9%
B. 542.5%
C. 15.5%
D. 18.4%
E. 646.9%
 

87. A company had net cash flows from operations of $120,000, cash flows from financing of $330,000, total cash flows of $500,000, and average total assets of $2,500,000. The cash flow on total assets ratio equals: 
A. 4.8%.
B. 5.0%.
C. 20.0%.
D. 20.8%.
E. 24.0%.

88. A company had average total assets of $1,660,000, total cash flows of $1,320,000, cash flows from operations of $205,000, and cash flows from financing of $750,000. The cash flow on total assets ratio equals: 
A. 45.2%.
B. 22.0%.
C. 11.65%.
D. 12.3%.
E. 79.5%.

89. Preparation of the statement of cash flows does not involve: 
A. Computing the net increase or decrease in cash.
B. Computing and reporting net cash provided or used by operations.
C. Computing the profit compared to the net increase or decrease in cash.

D. Computing and reporting net cash provided or used by financing activities.
E. Computing and reporting net cash provided or used by investing activities.

90. The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers, and subtracts the major items of operating cash disbursements, such as cash paid for merchandise, is referred to as the: 
A. Direct method of reporting net cash provided or used by operating activities.
B. Cash basis of accounting.
C. Classified statement of cash flows.
D. Indirect method of reporting net cash provided or used by operating activities.
E. Net method of reporting cash flows from operating activities.

91. A statement of cash flows explains the differences between the beginning and ending balances of: 
A. Net income.
B. Equity.
C. Cash and cash equivalents.
D. Working capital.
E. Cash, cash equivalents, and short-term investments.

92. The direct method for the preparation of the operating activities section of the statement of cash flows: 
A. Separately lists each major item of operating cash receipts and cash payments.
B. Reports adjustments to reconcile net income to net cash provided or used by operating activities in the statement.
C. Reports a different amount of cash flows from operations than if the indirect method is used.
D. Is required if the company is a merchandiser.
E. Is required by the FASB.

93. The indirect method for the preparation of the operating activities section of the statement of cash flows: 
A. Separately lists each major item of operating cash receipts.
B. Separately lists each major item of operating cash payments.
C. Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities.
D. Is required if the company is a merchandiser.
E. Must not be used in all circumstances.

94. The direct method of reporting operating cash flows: 
A. Is recommended but not required by the FASB.
B. Must be used by all companies.
C. Is used by most companies.
D. Is considered supplementary disclosure.
E. Is not recommended by the FASB, but is commonly used.

95. Of the following, which one affects cash during a period? 
A. The declaration of a stock dividend.
B. Writing off an uncollectible account receivable.
C. The declaration of a cash dividend.
D. An adjusting entry recognizing the expiration of prepaid insurance.
E. The payment of interest expense accrued in a previous accounting period.

97. When using the indirect method to calculate and report net cash provided or used by operating activities, which of the following is subtracted from net income? 
A. Decrease in income taxes payable.
B. Depreciation expense.
C. Amortization of intangible assets.
D. Bad debts expense.
E. Decrease in merchandise inventory.

98. The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is: 
A. Cash.
B. Cash received from customers.
C. Increase (decrease) in accounts receivable.
D. Net income.
E. Adjustments to net income.

99. When preparing a statement of cash flows using the indirect method, each of the following should be classified as an operating cash flow except: 
A. An increase in accounts receivable.
B. A decrease in accounts payable.
C. Proceeds from the disposal of a long-term asset with no gain or loss.
D. An increase in prepaid expenses.
E. A decrease in accrued expenses payable.

100. A company’s Inventory balance at 12/31/16 was $188,000 and $200,000 at 12/31/15. Its Accounts Payable balance at 12/31/16 was $84,000 and $80,000 at 12/31/15, and its cost of goods sold for 2016 was $720,000. The company’s total amount of cash payments for merchandise in 2016 equals: 
A. $704,000.
B. $712,000.
C. $720,000.
D. $728,000.
E. $736,000.

101. Use the following information to calculate cash paid for wages and salaries:
 

Salaries expense………………..

$168,000

Salaries payable, January 1………….

6,400

Salaries payable, December 31………..

10,600

A. $157,400.
B. $163,800.
C. $168,000.
D. $172,200.
E. $174,400.

102. Use the following information to calculate cash paid for income taxes:
 

Income tax expense………………

$43,000

Income tax payable, January 1………..

9,100

Income tax payable, December 31………

10,200

A. $23,700.
B. $52,100.
C. $53,200.
D. $41,900.
E. $43,000.

103. Use the following information about the current year’s operations of a company to calculate the cash paid for merchandise.
 

Cost of goods sold………………………………..

$226,000

Merchandise inventory, January 1……………….

54,800

Merchandise inventory, December 31……………

57,400

Accounts payable, January 1…………………….

54,400

Accounts payable, December 31………………..

59,800

A. $218,000.
B. $223,200.
C. $220,000.
D. $228,800.
E. $234,000.

104. Use the following information about the current year’s operations of a company to calculate the cash paid for merchandise.
 

Cost of goods sold………………………………..

$ 735,000

Merchandise inventory, January 1……………….

84,700

Merchandise inventory, December 31……………

82,400

Accounts payable, January 1…………………….

54,500

Accounts payable, December 31………………..

60,200

A. $727,000.
B. $726,300.
C. $732,700.
D. $737,300.
E. $737,700.

105. When preparing a statement of cash flows using the indirect method, which of the following is correct? 
A. Proceeds from the sale of equipment should be added to net income in the operating activities section.
B. A loss on the sale of land should be added to net income in the operating activities section.
C. The declaration of a cash dividend should be a use of cash in the financing activities section.
D. The issuance of a stock dividend should be a use of cash in the financing activities section.
E. The purchase of land and a building by issuing a long-term note payable should be a source of cash in the financing activities section.