Question :
31. Felton Inc. had the following information related to last year’s : 1295738
31. Felton Inc. had the following information related to last year’s purchases:
Cost of goods sold
$600,000
Accounts payable – beginning
25,000
Accounts payable – ending
40,000
What amount would be reported as “cash outflows for purchases” on the statement of cash flows using the direct method? A. $615,000B. $585,000C. $665,000D. $535,000
32. Crenshaw Inc. had the following information related to last year’s purchases:
Cost of goods sold
$425,000
Accounts payable – beginning
18,000
Accounts payable – ending
10,000
What amount would be reported as “cash outflows for purchases” on the statement of cash flows using the direct method? A. $433,000B. $417,000C. $453,000D. $397,000
33. Haley Inc. had the following information related to last year’s purchases:
Cost of goods sold
$190,000
Accounts payable – beginning
6,000
Accounts payable – ending
10,000
What amount would be reported as “cash outflows for purchases” on the statement of cash flows using the direct method? A. $174,000B. $194,000C. $206,000D. $186,000
34. Caldwell Corp. reported cost of goods sold of $700,000 on their income statement for 2008. From the beginning until the end of 2008, accounts payable decreased by a net amount of $75,000. How much “cash outflows for purchases” should Caldwell report for 2008 on their statement of cash flows? A. $ 75,000B. $700,000C. $775,000D. $625,000
35. Simmons Inc. reported cost of goods sold of $900,000 on their income statement for 2008. From the beginning until the end of 2008, accounts payable increased by a net amount of $30,000. How much “cash outflows for purchases” should Simmons report for 2008 on their statement of cash flows? A. $ 30,000B. $870,000C. $900,000D. $930,000
36. McClintock Inc. had the following information available from its 2008 balance sheet and income statement:
Insurance expense
$40,000
Prepaid insurance – beginning
2,000
Prepaid insurance – ending
3,200
What amount would be reported as cash outflows for insurance on the statement of cash flows for 2008 using the direct method? A. $38,800B. $41,200C. $45,200D. $34,800
37. Peter Piper Inc. had the following information available from its 2008 balance sheet and income statement:
Insurance expense
$55,000
Prepaid insurance – beginning
8,000
Prepaid insurance – ending
5,000
What amount would be reported as cash outflows for insurance on the statement of cash flows for 2008 using the direct method? A. $68,000B. $58,000C. $42,000D. $52,000
38. Tuffet Corporation had the following information available from its 2008 balance sheet and income statement:
Interest expense
$25,000
Interest payable – beginning
3,000
Interest payable – ending
1,000
What amount would be reported as cash outflows for interest on the statement of cash flows for 2008 using the direct method? A. $27,000B. $29,000C. $21,000D. $23,000
39. Lineberger Corporation had the following information available from its 2008 balance sheet and income statement:
Interest expense
$68,000
Interest payable – beginning
4,500
Interest payable – ending
8,000
What amount would be reported as cash outflows for interest on the statement of cash flows for 2008 using the direct method? A. $71,500B. $80,500C. $64,500D. $55,500
40. When using the indirect method of preparing a statement of cash flows, which of the following items would need to be added to net income in order to reconcile to cash provided by operating activities? A. Increase in accounts receivableB. Decrease in liabilitiesC. Depreciation expenseD. Increase in notes payable
