Question :
128. Chapin Company reported net income of $410,000 for 2009. Balances : 1229425
128. Chapin Company reported net income of $410,000 for 2009. Balances of selected current asset and current liability accounts are as shown on the indicated dates:
Depreciation expense for 2009 amounted to $65,000. Using only the above information, compute Chapin’s net cash flow from operating activities (indirect method) for 2009:
A. $470,600.
B. $467,400.
C. $460,600.
D. $448,600.
129. Monarch Company uses the indirect method to prepare its statement of cash flows. The following information has been gathered for the current period:
On the basis of the above information only, Monarch Company’s statement of cash flows shows net cash flow from operating activities to be:
A. $187,000.
B. $333,000.
C. $225,000.
D. $361,000.
130. Empire Company uses the indirect method to prepare its statement of cash flows. The following information has been gathered for the current period:
Solely on the basis of the above information, Empire’s net cash flow from operating activities is:
A. $338,000.
B. $428,000.
C. $355,000.
D. $343,000.
131. Royal Corporation uses the indirect method of computing net cash flow from operating activities and reported the following for 2009: accounts receivable decreased by $10,300, merchandise inventory increased by $15,300, accounts payable decreased by $4,000, and income taxes payable increased by $18,800. If Royal Corporation reported net income for 2009 of $157,800 (including $34,800 of depreciation expense), net cash flow from operating activities for 2009 is:
A. $202,400.
B. $132,800.
C. $164,800.
D. $221,700.
132. At the end of 2010, Schenck Corporation sold its only piece of equipment for $9,000 cash, a price which resulted in a loss of $3,000. During 2010, depreciation expense recognized by Schenck was $1,000. Schenck uses the indirect method to compute net cash flow from operating activities. In reconciling net income to net cash flow from operating activities under the indirect method, the required adjustments based upon the given data:
A. Increase net income by $4,000.
B. Increase net income by $1,000.
C. Decrease net income by $4,000.
D. Increase net income by $3,000.
133. Alexander Company reported an increase of $185,000 in its accounts receivable during the year. The company’s statement of cash flows reported $500,000 of cash received from customers. What amount of net sales must Alexander have recorded?
A. $315,000.
B. $685,000.
C. $500,000.
D. $185,000
134. Rent expense in Burr Company’s income statement is $480,000. If Prepaid Rent was $120,000 on January 1 and is $95,000 on December 31, the cash paid for rent during the year is:
A. $480,000.
B. $455,000.
C. $360,000.
D. $575,000.
The financial statements of York, Inc., provide the following information for the current year:
135. Compute the amount of cash received from customers during the current year.
A. $1,548,750.
B. $1,564,500.
C. $1,533,000.
D. $1,806,000.
136. Compute the amount of cash payments for purchases of merchandise during the current year.
A. $813,750.
B. $811,125.
C. $819,000.
D. $1,078,875.
137. Compute the amount of cash payments for operating expenses.
A. $138,600.
B. $141,750.
C. $189,000.
D. $174,825.
138. Net cash flow from operating activities for the current year is:
A. $595,875.
B. $596,400.
C. $556,500.
D. $580,125.
The financial statements of Garver, Inc., provide the following information for the current year:
139. Compute the cash received from customers during the current year.
A. $530,000.
B. $510,000.
C. $520,000.
D. $80,000.
140. Compute the cash payments for purchases of merchandise during the current year.
A. $260,000.
B. $250,000.
C. $266,000.
D. $254,000.
141. Compute the cash payments for operating expenses.
A. $146,000.
B. $118,000.
C. $162,000.
D. $130,000.
142. Net cash flow from operating activities for the current year is:
A. $114,000.
B. $118,000.
C. $122,000.
D. $134,000.
