Question :
91. A company’s income statement showed the following: net income, $124,000; : 1256412
91. A company’s income statement showed the following: net income, $124,000; depreciation expense, $30,000, and gain on sale of plant assets, $14,000. An examination of the company’s current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses decreased $6,200; accounts payable increased $3,400. Calculate the net cash provided or used by operating activities. A. $139,000B. $141,000C. $145,800D. $155,000E. $167,000
92. Use the following information and the indirect method to calculate the net cash provided or used by operating activities:
Net income
$12,300
Depreciation expense
12,000
Payment on mortgage payable
15,000
Gain on sale of land
7,500
Increase in merchandise inventory
2,050
Increase in accounts payable
6,150
Proceeds from sale of land
8,000
A. $12,700B. $13,900C. $20,900D. $28,400E. $35,900
93. Use the following information and the indirect method to calculate the net cash provided or used by operating activities:
Cash paid for purchase of plant assets
$15,000
Decrease in interest payable
2,000
Depreciation expense
30,000
Gain on retirement of bonds
32,000
Increase in accounts receivable
40,000
Loss on sale of plant assets
5,000
Net Income
76,000
A. $22,000B. $117,000C. $69,000D. $37,000E. $91,000
94. A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is: A. $50,000.B. $5,000.C. $45,000.D. Zero. This is an operating activity.E. Zero. This is a financing activity.
95. A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash, resulting in a loss of $3,000. The amount to be reported under cash flows from financing activities is: A. $3,000 outflow.B. $60,000 outflow.C. $57,000 outflow.D. Zero. This is an operating activity.E. Zero. This is an investing activity.
96. Which of the following items is reported on the statement of cash flows under financing activities? A. Declaration of a cash dividend.B. Payment of a cash dividend.C. Declaration of a stock dividend.D. Payment of a stock dividend.E. Stock split.
97. Under IFRS, cash outflows for interest expense are classified as A. Operating. B. Investing.C. Financing.D. Operating or investing, assuming that the classification is applied consistently across all periods.E. Investing or financing, depending upon who is the recipient of the interest paid.
98. Given the following information, determine the amount of cash flows from investing and financing activities.
Net income
$50,000
Loss on sale of plant assets
15,000
Cash received from sale of plant assets
26,000
Cash received from issuing stock
70,000
Increase in income taxes payable
120,000
A.
Cash provided by investing activities, $11,000
Cash provided by financing activities, $70,000
B.
Cash used by investing activities, $11,000
Cash used by financing activities, $70,000
C.
Cash provided by investing activities, $26,000
Cash provided by financing activities, $55,000
D.
Cash used by investing activities, $26,000
Cash used by financing activities, $55,000
E.
Cash provided by investing activities, $26,000
Cash provided by financing activities, $70,000
99. Given the following information, determine the amount of cash flows from investing and financing activities.
Net income
$70,000
Loss on sale of plant assets
25,000
Cash received from sale of plant assets
36,000
Cash received from issuing stock
80,000
Increase in income taxes payable
20,000
A.
Cash provided by investing activities, $11,000
Cash provided by financing activities, $80,000
B.
Cash used by investing activities, $80,000
Cash used by financing activities, $11,000
C.
Cash provided by investing activities, $80,000
Cash provided by financing activities, $36,000
D.
Cash used by investing activities, $25,000
Cash used by financing activities, $36,000
E.
Cash provided by investing activities, $36,000
Cash provided by financing activities, $80,000
100. 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.
