Question :
21) Rocket, Corporation reports a $17,000 increase in Inventory and : 1230063
21) Rocket, Corporation reports a $17,000 increase in Inventory and a $30,000 increase in Accounts Payable for the year. If the cost of purchases totaled $400,000 for the year, the cash paid to Rocket’s suppliers is:
A) $447,000.
B) $430,000.
C) $370,000.
D) $353,000.
22) Under the direct method of preparing the statement of cash flows, which statement is correct regarding the method of computing interest revenue?
A) Sales plus a decrease in interest receivable
B) Interest revenue plus a decrease in interest receivable
C) Interest revenue plus an increase in interest receivable
D) Interest revenue less a decrease in interest receivable
23) During the year, Engine Engineering Corporation has operating expenses of $30,000. There was an increase in prepaid expenses of $5,000 and an increase in accrued liabilities of $7,000. What were Engine’s cash payments for operating expenses?
A) $42,000
B) $32,000
C) $28,000
D) $18,000
24) The direct method of preparing the statement of cash flows is preferred primarily because of the way it reports:
A) operating activities.
B) investing activities.
C) financing activities.
D) noncash activities.
25) Which of the following would NOT appear in the operating activities section of a statement of cash flows using the direct method?
A) Cash paid for income taxes
B) Interest received on notes receivable
C) Gain on sale of equipment
D) Payments to suppliers
26) New Street Corporation had accounts receivable of $110,000 at the beginning of the year and $125,000 at the end of the year. Sales on account for the year amounted to $575,000. The amount to be reported on the statement of cash flows under the operating activities is:
A) $575,000.
B) $15,000.
C) $560,000.
D) $465,000.
27) Plymouth Corporation reported an increase in inventory of $75,000. The cost of goods sold for the year was $180,000. There was also a $7,000 decrease in accounts payable from the beginning of the year to the end of the year. What were Plymouth’s cash payments to suppliers?
A) $262,000
B) $248,000
C) $255,000
D) $187,000
28) Plymouth Corporation reported a decrease in inventory of $15,000. The cost of goods sold for the year was $180,000. There was also a $5,000 decrease in accounts payable from the beginning of the year to the end of the year. What were Plymouth’s cash payments to suppliers?
A) $202,000
B) $188,000
C) $172,000
D) $158,000
29) Outlaw, Inc. began the year with $279,000 in Accounts Receivable and ended the year with $232,700 in Accounts Receivable. Sales for the year were $3,870,000. The cash collected from customers during the year amounted to:
A) $4,149,000.
B) $4,102,700.
C) $3,916,300.
D) $3,823,700.
30) XYZ Corporation reported a $35,000 increase in inventory and a $7,000 decrease in accounts payable during the year. XYZ’s cost of goods sold amounted to $185,000. Under the direct method of reporting cash flows from operating activities, cash payments to suppliers amounted to:
A) $227,000.
B) $213,000.
C) $157,000.
D) $143,000.
31) Salem Corporations income statement showed cost of goods sold of $115,000 and operating expenses of $20,000. The inventory account decreased $7,000, accounts payable increased $5,000, prepaid expenses increased $3,000, and accrued expenses payable decreased $2,000.
1.Cash payments for operating expenses
2.Cash payments to suppliers
