Question :
107.The following data available for Simpson Corporation.
Net income$300,000
Depreciation expense60,000
Dividends paid90,000
Gain : 1311965
107.The following data are available for Simpson Corporation.
Net income$300,000
Depreciation expense60,000
Dividends paid90,000
Gain on sale of land15,000
Decrease in accounts receivable30,000
Decrease in accounts payable45,000
MC. 107(cont.)
Net cash provided by operating activities is:
a.$240,000.
b.$330,000.
c.$360,000.
d.$420,000.
108.The following data are available for Nemo Corporation.
Sale of land$250,000
Sale of equipment $125,000
Issuance of common stock140,000
Purchase of equipment 60,000
Payment of cash dividends120,000
Net cash provided by investing activities is:
a.$315,000.
b.$260,000.
c.$335,000.
d.$455,000.
109.The following data are available for Quarter Company.
Increase in accounts payable$120,000
Increase in bonds payable400,000
Sale of investments150,000
Issuance of common stock180,000
Payment of cash dividends90,000
Net cash provided by financing activities is:
a.$280,000.
b.$490,000.
c.$460,000.
d.$520,000.
110.If $250,000 of bonds are issued during the year but $100,000 of old bonds are retired during the year, the statement of cash flows will show a(n)
a.net increase in cash of $150,000.
b.net decrease in cash of $150,000.
c.increase in cash of $250,000 and a decrease in cash of $100,000.
d.net gain on retirement of bonds of $150,000.
111.Which of the following changes in retained earnings during a period will be reported in the financing activities section of the statement of cash flows?
1.Declaration and payment of a cash dividend during the period.
2.Net income for the period.
a.1
b.2
c.Neither 1 nor 2.
d.Both 1 and 2.
112.The statement of cash flows
a.is prepared instead of an income statement under generally accepted accounting principles.
b.is used to assess an entity’s ability to pay dividends and meet obligations.
c.is prepared from comparative income statements.
d.reflects earnings per share figures on a cash basis and on an accrual basis in the body of the statement.
113.In preparing the statement of cash flows, determining the net increase or decrease in cash requires the use of
a.the adjusted trial balance.
b.the current period’s balance sheet.
c.a comparative balance sheet.
d.a comparative income statement.
114.To determine the net cash provided (used) by operating activities, it is necessary to analyze
a.the current year’s income statement.
b.a comparative balance sheet.
c.additional information.
d.all of these.
115.Which of the following would not be needed to determine net cash provided by operating activities?
a.Depreciation expense
b.Change in accounts receivable
c.Payment of cash dividends
d.Change in prepaid expenses
116.When equipment is sold for cash, the amount received is reflected as a cash
a.inflow in the operating section.
b.inflow in the financing section.
c.inflow in the investing section.
d.outflow in the operating section.