Question :
41.Bath Works had a net loss of $5,100 in 2014. : 1302918
41.Bath Works had a net loss of $5,100 in 2014. During the year, a gain of $4,000 was recognized on the sale of fully depreciated equipment that had cost $14,000 and had no salvage value. Depreciation expense during the year totaled $17,400. Changes in the following selected accounts occurred during the year:
Increase/(Decrease)
Accounts receivable $6,500
Inventory (3,200)
Interest payable 1,200
Accounts payable (1,000)
Accumulated depreciation 3,400
Notes payable (6,400)
Long-term investments (9,000)
Using the indirect method, how much is the company’s net cash provided(used) by operating activities?
A.$15,800
B.$9,200
C.$8,800
D.$5,200
42.Marquette Décor is a merchandiser that operates a small retail store. Comparative balance sheets for the years ending December 31, 2014 and 2013 and its income statement for 2014 follow:
December 31
Assets 20142013
Cash$ 35,400$ 45,300
Accounts receivable11,40014,500
Merchandise inventories36,50034,100
Equipment90,00066,000
Accumulated depreciation(28,600)(31,400)
Total assets$144,700 $128,500
Liabilities and Stockholders’ Equity
Accounts payable$ 14,300$ 12,500
Income taxes payable4,5008,800
Long-term notes payable16,50023,000
Common stock, $2 par88,20065,300
Retained earnings21,200 18,900
Total liabilities and stockholders’ equity$144,700 $128,500
Sales
$224,000
Cost of goods sold123,000
Depreciation expense14,000
Other expenses56,000
Gain on sale of equipment3,400
Income taxes16,000
Net income$ 18,400
During the year, equipment with an original cost of $17,000, and accumulated depreciation totaling $16,800 was sold for $3,600. Dividends were declared and paid during the year. The company uses the indirect method. How much is cash provided/(used) by operating activities?
A.$27,200
B.$30,600
C.$29,000
D.$30,800
43.Econ Services’ statement of cash flows indicates a $73,000 increase in cash during the year. The statement also indicates that the company used $42,000 for operating activities and $89,000 was provided by financing activities. How much was net cash provided/(used) by investing activities?
A.$204,000
B.($58,000)
C.$26,000
D.($47,000)
44.Thomas Electric’s statement of cash flows indicates a $12,000 decrease in cash during the year. The statement also indicates that $28,000 was provided by operating activities and $15,000 was used by investing activities. How much is net cash provided/(used) by financing activities?
A.($25,000)
B.($1,000)
C.($31,000)
D.$42,000
45.The accounting records of Snapdog Enterprises include the following information:
December 31,
20142013
Accounts payable $12,800 $13,200
Accounts receivable 24,000 21,700
The company’s income statement for 2014 appears below.
Sales $280,000
Cost of goods sold 150,000
Depreciation expense 15,000
Other operating expenses 68,000
Loss on sale of plant asset 10,200
Income taxes 24,000
Net income $ 12,800
What amount of net cash provided by operating activities will Snapdog Enterprises report for 2014 using the indirect method?
A.$35,300
B.$25,900
C.$36,100
D.$39,900
46.Kingston Jerk Factory reported the following results for 2014:
December 31January 1
Property, plant, and equipment$420,000$405,000
Accumulated depreciation(189,000) (180,000)
Net property, plant, and equipment$231,000 $225,000
During 2014, the company sold equipment that had an original cost of $39,000 and accumulated depreciation of $31,000 for $13,000. New equipment was purchased for cash during the year. How much gain/(loss) will Kingston add or subtract from net income when preparing the operating activities section of the statement of cash flows using the indirect method for 2014?
Subtract $5,000
Add $2,000
C.Subtract $26,000
D.There is not enough information provided to answer this question.
47.Kingston Jerk Factory reported the following results for 2014:
December 31January 1
Property, plant, and equipment$420,000$405,000
Accumulated depreciation(189,000) (180,000)
Net property, plant, and equipment$231,000 $225,000
During 2014, the company sold equipment that had an original cost of $39,000 and accumulated depreciation of $31,000 for $13,000. New equipment was purchased for cash during the year. How much is reported for cash paid to acquire property, plant, and equipment on the statement of cash flows for 2014?
$5,000
$54,000
C.$28,000
D.There is not enough information provided to answer this question.
48.In 2014, Maxi Office Supplies sold a plant asset that had an original cost of $54,000 and accumulated depreciation of $28,000 for $15,000 in cash. Which one of the following is one item to be reported on the statement of cash flows prepared using the indirect method?
A.An addition to net income in the operating activities section for $11,000
B.A subtraction from net income in the operating activities section for $11,000
C.A source of cash of $15,000 in the financing activities section
D.A use of cash in the investing activities section for $26,000
49.Limon Grill’s balance in retained earnings was $87,000 at the beginning of the year and $92,000 at the end of the year. If the company declared and paid dividends of $26,000 during the year, how much was net income/(loss) for the year?
A.$5,000
B.$31,000
C.$21,000
D.($5,000)
50.During 2014, Lance Chips sold equipment that had an original cost of $143,000 and accumulated depreciation of $110,000, for cash totaling $25,000. Which one of the following is one effect of this transaction on the statement of cash flows if the indirect method is used?
A.An addition to net income in the operating activities section for $25,000
B.An addition to net income of $8,000 in the operating activities section
C.A subtraction of $33,000 in the investing activities section
D.An addition of $8,000 in the investing activities section
