Question : 106.A company’s income statement showed the following: net income, $134,000; : 1236504

 

106.A company’s income statement showed the following: net income, $134,000; depreciation expense, $30,000; and gain on sale of plant assets, $4,000. 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 increased $6,200; accounts payable increased $3,400. Calculate the net cash provided or used by operating activities.    

A.$156,600.

B.$141,000.

C.$96,600.

D.$148,600.

E.$88,600.

107.A company’s income statement showed the following: net income, $124,000 and depreciation expense, $30,000. 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; and accounts payable increased $3,400. Calculate the net cash provided or used by operating activities.    

A.$118,000.

B.$159,200.

C.$123,200.

D.$148,800.

E.$178,000.

108.Use the following information and the indirect method to calculate the net cash provided or used by operating activities: 

A.$69,900.

B.$108,900.

C.$93,900.

D.$85,700.

E.$81,600.

109.In preparing a company’s statement of cash flows for the most recent year using the indirect method, the following information is available: 

A.$120,000.

B.$71,000.

C.$70,000.

D.$24,000.

E.$110,000.

110.In preparing a company’s statement of cash flows for the most recent year using the indirect method, the following information is available: 

A.$120,000.

B.$60,000.

C.$70,000.

D.$80,000.

E.$130,000.

111.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.

112.A machine with a cost of $130,000, accumulated depreciation of $85,000, and current year depreciation expense of $17,000 is sold for $40,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:   

A.$45,000.

B.$5,000.

C.$17,000.

D.$28,000.

E.$40,000.

113.A machine with a cost of $130,000, current year depreciation expense of $17,000 and accumulated depreciation of $85,000 is sold for $40,000 cash. The amount(s) that should be reported in the operating section of the statement of cash flows is:   

A.$17,000.

B.$4,000.

C.$57,000.

D.$21,000.

E.$22,000.

114.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).

B.$60,000.

C.($57,000).

D.$7,000.

E.($7,000).

115.Addams Corporation paid cash dividends totaling $75,000 during its most recent fiscal year. How should this information be reported on Addam’s statement of cash flows?   

A.In operating activities as a source of funds.

B.In investing activities as a source of funds.

C.In investing activities as a use of funds.

D.In financing activities as a source of funds.

E.In financing activities as a use of funds.

 

 

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