Question : 44.Selected information from Cooke Inc. provided below for the years : 1253567

 

44.Selected information from Cooke Inc. is provided below for the years ending December 31, 2009 and 2008.

 

 

2009

2008

Accumulated depreciation

$32,000

$29,000

Equipment

60,000

55,000

 

During 2009, depreciation expense was recorded. New equipment was acquired for cash. Old equipment which was 70% depreciated with an original cost of $26,000 was sold for a gain of $4,000. What is the cost of the new equipment acquired?

a.$11,800

b.$5,000

c.$21,000

d.$31,000

45.The May 1 and May 31 balances in accounts receivable are $35,000 and $36,000, respectively. During May, the company reported sales totaling $235,000 from its customers. The company incurred $211,000 of expenses, although $12,000 was not paid as of May 31. How much is cash flows from operations for May?

a.$24,000

b.$37,000

c.$11,000

d.$35,000

Use the information for Forman Incorporated for the year ending December 31, 2009 that follows to answers questions 46 and 47.

The following are relevant account balances from Forman Incorporated’s comparative balance sheet and 2009 income statement:

 

December 31, 2009

January 1, 2009

Accounts receivable

$ 22,000

$19,000

Unearned revenue

3,000

4,000

Salaries payable

8,000

5,000

Sales revenue

154,000

 

Salaries expense

88,000

 

 

46.Determine the amount of cash that Forman Incorporated collected from customers during 2009.

a.$150,000

b.$158,000

c.$151,000

d.$156,000

47.Determine the amount of cash that Forman Incorporated paid for salaries during 2009.

a.$91,000

b.$88,000

48.Johnson Company engaged in the following transactions during 2010:

     Johnson wrote off an open receivable as uncollected.

     Johnson purchased a piece of plant equipment

     Johnson reacquired 5,000 shares of its common stock.

     Johnson sold a building at a loss in exchange for a five-year note.

     Johnson declared, but did not pay a cash dividend.

If Johnson uses the indirect method, which of these transactions or parts of these transactions would be included in the operating activity section of the statement of cash flows?

a.  Transaction 4

b.  Transaction 1

c.  More than one of these transactions would be found in the operating activity section.

d.  None of these transactions would be found in the operating activity section.

49.Johnson Company engaged in the following transactions during 2010:

     Johnson wrote off an open receivable as uncollected.

     Johnson purchased a piece of plant equipment

     Johnson reacquired 5,000 shares of its common stock.

     Johnson sold a building at a loss in exchange for a five-year note.

     Johnson declared, but did not pay a cash dividend.

Which of these transactions or parts of these transactions would be included in the financing  activity section of the statement of cash flows?

a.  Transactions 2 and 4.

b.  Transactions 2 through 5

c.  Transaction 3

d.  None of these choices are correct.

50.Johnson Company engaged in the following transactions during 2010:

     Johnson wrote off an open receivable as uncollected.

     Johnson purchased a piece of plant equipment

     Johnson reacquired 5,000 shares of its common stock.

     Johnson sold a building at a loss in exchange for a five-year note.

     Johnson declared, but did not pay a cash dividend.

If Johnson uses the indirect method, which of these transactions or parts of these transactions would not appear on the statement of cash flows?

a.  Transaction 1 and 5 only.

b.  Transactions 4 and 5 only.

c.  Transactions 1, 4, and 5.

d.  None of these would appear on the statement of cash flows.