Question :
106.A company’s income statement showed the following: net income, $134,000; : 1236504
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:
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:
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.
