Question :
106. A company’s income statement showed the following: net income, $134,000; : 1257705
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:
Net income for the year was
$52,000
Accounts payable decreased by
$18,000
Accounts receivable increased by
$25,000
Inventories increased by
$ 5,000
Cash dividends paid were
$14,000
Depreciation expense was
$20,000
Net cash provided by operating activities was: 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:
Net income for the year was
$52,000
Accounts payable increased by
$18,000
Accounts receivable decreased by
$25,000
Inventories increased by
$ 5,000
Depreciation expense was
$30,000
Net cash provided by operating activities was: 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.
