Question :
31. Simmon Incorporation’s cost of goods purchased amounted to $20,000. From : 1291650
31. Simmon Incorporation’s cost of goods purchased amounted to $20,000. From the beginning until the end of 2011, accounts payable increased by a net amount of $7,000. How much “cash outflows for purchases” should Simmons report for 2011 on their statement of cash flows? A. $ 7,000B. $13,000C. $20,000D. $27,000
32. McClintock Inc. had the following information available from its 2011 balance sheet and income statement:
Insurance expense
$15,000
Prepaid insurance – beginning
30,000
Prepaid insurance – ending
25,000
What amount would be reported as cash outflows for insurance on the statement of cash flows for 2011 using the direct method? A. $70,000B. $10,000C. $20,000D. $25,000
33. Peter Piper Inc. had the following information available from its 2011 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 2011 using the direct method? A. $68,000B. $58,000C. $42,000D. $52,000
34. Tuffet Corporation had the following information available from its 2011 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 2011 using the direct method? A. $27,000B. $29,000C. $21,000D. $23,000
35. Lineberger Corporation had the following information available from its 2011 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 2011 using the direct method? A. $71,500B. $80,500C. $64,500D. $55,500
36. 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 long-term loan
37. When using the indirect method of preparing a statement of cash flows, which of the following items would need to be deducted from net income in order to reconcile to cash provided by operating activities? A. Increase in accounts payableB. Increase in accounts receivableC. Depreciation expenseD. Increase in property, plant, and equipment
38. When using the indirect method of preparing a statement of cash flows, which of the following items would need to be deducted from net income in order to reconcile to cash provided by operating activities? A. Gain on sale of property, plant, and equipmentB. Decrease in prepaid insuranceC. Depreciation expenseD. Increase in salaries payable
39. The collection of interest revenue will be depicted on the statement of cash flows as a: A. cash inflow from an operating activity.B. cash inflow from an investing activity.C. cash outflow for a financing activity.D. cash inflow from a financing activity.
40. The payment of interest expense will be depicted on the statement of cash flows as a: A. cash inflow from an operating activity.B. cash outflow for an investing activity.C. cash inflow from a financing activity.D. cash outflow for an operating activity.
