Question :
21. The following items were reported the balance sheets and income : 1224826
21. The following items were reported on the balance sheets and income statement for Online Co.:
Accounts receivable, December 31, 2011
$ 250,000
Accounts receivable, December 31, 2012
225,000
Sales–2012
1,000,000
What amount would be reported in the operating activities section of Online’s statement of cash flows for collections from customers under the direct method, assuming that all sales are on credit? A. $ 975,000B. $1,025,000C. $1,225,000D. $1,250,000
22. The following items were reported on the balance sheets and income statement for Transformer Inc., a service company:
Accrued liabilities, December 31, 2011
$ 92,000
Accrued liabilities, December 31, 2012
55,000
Operating expenses–2012
200,000
What amount would be reported in the operating activities section of Transformer’s statement of cash flows for payments for operating expenses under the direct method? A. $237,000B. $163,000C. $200,000D. $292,000
23. Pacific Whale Corporation reported the following information for 2011 and 2012:
Accounts receivable, December 31, 2011
$122,000
Accounts receivable, December 31, 2012
113,000
Sales (all on credit)–2012
850,000
How much cash was received from customers during 2012? A. $972,000B. $841,000C. $859,000D. $963,000
24. Cold and Flu Corporation reported the following information for 2011 and 2012. Inventory is not reported as there was no change in inventory from December 31, 2011, to December 31, 2012.
Accounts payable, December 31, 2011
$ 45,000
Accounts payable, December 31, 2012
25,000
Cost of goods sold 2012
220,000
How much cash was paid for inventory during 2012? A. $200,000B. $245,000C. $265,000D. $240,000
25. Diablo Company reported the following information for 2011 and 2012:
Prepaid insurance, December 31, 2011
$14,000
Prepaid insurance, December 31, 2012
11,500
Insurance expense–2012
25,200
How much cash was paid for insurance during 2012? A. $22,700B. $27,400C. $39,200D. $36,700
26. Robin Corporation reported the following information for 2011 and 2012:
Salaries payable, December 31, 2011
$20,000
Salaries payable, December 31, 2012
15,000
Salaries expense–2012
80,000
How much cash was paid for salaries during 2012? A. $60,000B. $65,000C. $75,000D. $85,000
27. Brandywine Corporation reported the following information for 2011 and 2012:
Interest payable, December 31, 2011
$ 13,500
Interest payable, December 31, 2012
20,500
Interest expense–2012
32,000
How much cash was paid for interest during 2012? A. $25,000B. $39,000C. $52,500D. $45,500
28. Buckle Company reported the following information for 2011 and 2012.
Accounts payable, December 31, 2011
$ 60,000
Accounts payable, December 31, 2012
80,000
Inventory, December 31, 2011
45,000
Inventory, December 31, 2012
60,000
Cost of goods sold–2012
1,000,000
Assume that all merchandise purchases are on account. Under direct method how much cash was paid to suppliers for inventory purchases during 2012? A. $1,005,000B. $1,050,000C. $ 995,000D. $1,020,000
29. Pull & Co. reported net income for the current year. Which of the following business transactions would cause cash from operating activities to be higher than the amount of net income? A. Cash dividends were paid to stockholders during the year.B. Depreciation expense was recorded for the year.C. A bank loan was repaid during the year.D. Equipment was purchased for cash during the year.
30. Watch Tower Inc. reported net income of $950,000. Cash from operations: A. will always be more than $950,000.B. will always be less than $950,000.C. will be equal to $950,000.D. can not be determined without more information.
