Question : 31. Mary’s Music Store reported net income of $135,000. Beginning balances : 1236060

31. Mary’s Music Store reported net income of $135,000. Beginning balances in Accounts Receivable and Accounts Payable were $29,000 and $26,000, respectively. Ending balances in these accounts were $30,000 and $24,000, respectively. Assuming that all relevant information has been presented, Mary’s cash flows from operating activities would be: 
A. $132,000.
B. $134,000.
C. $136,000.
D. $138,000.

32. Kela Corporation reports net income of $450,000 that includes depreciation expense of $70,000. Also, cash of $50,000 was borrowed on a 5-year note payable. Based on this data, total cash inflows from operating activities are: 
A. $380,000.
B. $470,000.
C. $520,000.
D. $570,000.

33. Assume net income was $100,000, depreciation expense was $8,000, accounts receivable decreased by $7,500, and accounts payable decreased by $2,500. The amount of cash flows from operating activities is: 
A. $103,000.
B. $100,000.
C. $108,000.
D. $113,000.

34. Nevada Boot Co. reported net income of $205,000 Beginning and ending Inventory balances were $40,000 and $45,000, respectively. Accounts Payable balances at the beginning and end of the year were $35,000 and $33,000, respectively. Assuming that all relevant information has been presented, Nevada Boot would report operating cash flows of: 
A. $202,000.
B. $198,000.
C. $212,000.
D. $205,000.

35. Lense Laboratories’ net income was $250,000. Given the account information below, what is the net operating cash flows for Lense Laboratories?

  
 
A. $152,000.
B. $278,000.
C. $312,000.
D. $438,000.

36. Allen Company’s income statement reported total revenues, $850,000 and total expenses (including $40,000 depreciation) of $720,000. The balance sheet reported the following: Accounts Receivable—beginning balance, $50,000 and ending balance, $60,000; Accounts Payable—beginning balance, $22,000 and ending balance, $28,000. Therefore, based only on this information, the net cash inflows from operating activities were: 
A. $126,000.
B. $166,000.
C. $174,000.
D. $186,000.

37. Assuming Net Income for the year is $115,000, what is the Operating Cash Flows given the following information:

  
 
A. $112,000.
B. $88,000.
C. $118,000.
D. $188,000.

38. Which of the following statements is true? 
A. Investment in another company’s common stock is classified as a cash outflow from financing activities on the Statement of Cash Flows.
B. Repayment of long-term debt is classified as a cash outflow from investing activities on the Statement of Cash Flows.
C. Losses on the sale of long-term assets are an adjustment reported in the operating activities section of the Statement of Cash Flows under the indirect method.
D. Dividends paid are classified as a cash outflow from operating activities on the Statement of Cash Flows.

39. Which of the following is an example of a cash outflow from an investing activity? 
A. Payment of cash for treasury stock.
B. Payment of cash for the purchase of land.
C. Payment of cash for inventory.
D. Payment on a long-term note payable.

40. Which of the following is an example of a cash inflow from a financing activity? 
A. Issuance of bonds.
B. Sale of an intangible asset.
C. Receipt of cash dividends.
D. Purchase of land.