Question : 31.For the year ended December 31, 2014, Burton Company had : 1257088

 

 

31.For the year ended December 31, 2014, Burton Company had cash collections from customers of $100,000, cash paid to employees of $16,000, cash paid to suppliers of $50,000, cash used to retire long-term bonds of $16,000, and cash payments for dividends of $10,000. Cash provided by operating activities for 2014 is:   

A. $8,000.

 

B. $34,000.

 

C. $18,000.

 

D. $50,000.

 

 

32.The only difference between the cash flow statement prepared under the indirect method as opposed to the direct method is the manner in which the:   

A. cash flows from financing activities is presented.

 

B. schedule of non-cash items is presented.

 

C. cash flows from investing activities is presented.

 

D. cash flows from operating activities is presented.

 

 

33.Winkler Company sold equipment for $25,000 cash. The equipment had cost $40,000 and had accumulated depreciation of $22,000 at the time of the sale. Based on this information alone, select the True statement.   

A. Cash flow from investing activities would be less if the statement of cash flows is prepared by the direct method than if it is prepared under the indirect method.

 

B. Cash flow from investing activities would be the same regardless of whether the statement of cash flows is prepared by the direct method or the indirect method.

 

C. Cash flow from investing activities would be greater if the sale of equipment is reported on the statement of cash flows under the direct method than if it is reported under the indirect method.

 

D. The answer cannot be determined because the amount of the salvage value is unknown.

 

 

34.Which of the following would not be reported as an investing activity on the statement of cash flows?   

A. Cash dividends received from an investment in marketable securities.

 

B. Cash loaned to another company.

 

C. Cash received from the sale of equipment.

 

D. Cash paid to purchase production equipment.

 

 

35.Moyers Company reported the following in 2014: property, plant and equipment account increased by $25,000; accumulated depreciation account increased by $2,000. During the year, the company sold equipment that originally cost $12,000, and had $9,000 of accumulated depreciation for $4,500.What will Moyers Company report as additions to property, plant, and equipment on its 2014 statement of cash flows?   

A. $25,000

 

B. $37,000

 

C. $29,500

 

D. $13,000

 

 

36.Moyers Company reported the following in 2014: property, plant and equipment account increased by $25,000; accumulated depreciation account increased by $2,000. During the year, the company sold equipment that originally cost $12,000, and had $9,000 of accumulated depreciation for $4,500.What will Moyers Company report as proceeds from the sale of property, plant, and equipment on its 2014 statement of cash flows?   

A. $1,500

 

B. $4,500

 

C. $15,500

 

D. $12,000

 

 

37.During 2014, the Abbot Company had the following changes in account balances:1) The accumulated depreciation account had a beginning balance of $25,000 and an ending balance of $35,000. The increase was due to depreciation expense.2) The long-term notes payable account had a beginning balance of $40,000 and an ending balance of $15,000. The decrease was due to repayment of debt.3) The accounts receivable account had a beginning balance of $60,000 and an ending balance of $50,000.4) The equipment account had a beginning balance of $25,000 and an ending balance of $92,500. The increase was due to the purchase of equipment for cash.5) The long term investments account (marketable securities) had a beginning balance of $18,000 and an ending balance of $12,500. The decrease was due to the sale of investments at cost.6) The amount of cash dividends declared and paid during the year was $22,000.7) The interest payable account had a beginning balance of $2,250 and an ending balance of $1,250.What is the net cash flow from investing activities?   

A. $62,000 outflow

 

B. $62,000 inflow

 

C. $72,000 inflow

 

D. $72,000 outflow

 

 

38.During 2014, the Abbot Company had the following changes in account balances:1) The accumulated depreciation account had a beginning balance of $25,000 and an ending balance of $35,000. The increase was due to depreciation expense.2) The long-term notes payable account had a beginning balance of $40,000 and an ending balance of $15,000. The decrease was due to repayment of debt.3) The accounts receivable account had a beginning balance of $60,000 and an ending balance of $50,000.4) The equipment account had a beginning balance of $25,000 and an ending balance of $92,500. The increase was due to the purchase of equipment for cash.5) The long term investments account (marketable securities) had a beginning balance of $18,000 and an ending balance of $12,500. The decrease was due to the sale of investments at cost.6) The amount of cash dividends declared and paid during the year was $22,000.7) The interest payable account had a beginning balance of $2,250 and an ending balance of $1,250.What is the net cash flow from financing activities?   

A. $22,000 inflow

 

B. $25,000 inflow

 

C. $25,000 outflow

 

D. $47,000 outflow

 

 

39.During 2014, the Abbot Company had the following changes in account balances:1) The accumulated depreciation account had a beginning balance of $25,000 and an ending balance of $35,000. The increase was due to depreciation expense.2) The long-term notes payable account had a beginning balance of $40,000 and an ending balance of $15,000. The decrease was due to repayment of debt.3) The accounts receivable account had a beginning balance of $60,000 and an ending balance of $50,000.4) The equipment account had a beginning balance of $25,000 and an ending balance of $92,500. The increase was due to the purchase of equipment for cash.5) The long term investments account (marketable securities) had a beginning balance of $18,000 and an ending balance of $12,500. The decrease was due to the sale of investments at cost.6) The amount of cash dividends declared and paid during the year was $22,000.7) The interest payable account had a beginning balance of $2,250 and an ending balance of $1,250.Assume that a statement of cash flows has been prepared. The combination of the three major components (operating activities, investing activities, financing activities) equals the:   

A. Net income for the period.

 

B. Change in the cash account balance between the beginning and end of the period.

 

C. Ending cash balance.

 

D. Amount of cash inflow for the period.

 

 

40.During 2014, the Abbot Company had the following changes in account balances:1) The accumulated depreciation account had a beginning balance of $25,000 and an ending balance of $35,000. The increase was due to depreciation expense.2) The long-term notes payable account had a beginning balance of $40,000 and an ending balance of $15,000. The decrease was due to repayment of debt.3) The accounts receivable account had a beginning balance of $60,000 and an ending balance of $50,000.4) The equipment account had a beginning balance of $25,000 and an ending balance of $92,500. The increase was due to the purchase of equipment for cash.5) The long term investments account (marketable securities) had a beginning balance of $18,000 and an ending balance of $12,500. The decrease was due to the sale of investments at cost.6) The amount of cash dividends declared and paid during the year was $22,000.7) The interest payable account had a beginning balance of $2,250 and an ending balance of $1,250.If cash from operations was $12,000, cash from investing activities was ($24,000) and the net change in cash was $24,000, what was cash from financing activities?   

A. $36,000

 

B. $12,000

 

C. $24,000

 

D. ($36,000)