Question : 107.The following data available for Simpson Corporation. Net income$300,000 Depreciation expense60,000 Dividends paid90,000 Gain : 1311965

 

 

107.The following data are available for Simpson Corporation.

Net income$300,000

Depreciation expense60,000

Dividends paid90,000

Gain on sale of land15,000

Decrease in accounts receivable30,000

Decrease in accounts payable45,000

MC. 107(cont.)

Net cash provided by operating activities is:

a.$240,000.

b.$330,000.

c.$360,000.

d.$420,000.

 

 

108.The following data are available for Nemo Corporation.

Sale of land$250,000

Sale of equipment $125,000

Issuance of common stock140,000

Purchase of equipment 60,000

Payment of cash dividends120,000

 

Net cash provided by investing activities is:

a.$315,000.

b.$260,000.

c.$335,000.

d.$455,000.

 

 

109.The following data are available for Quarter Company.

Increase in accounts payable$120,000

Increase in bonds payable400,000

Sale of investments150,000

Issuance of common stock180,000

Payment of cash dividends90,000

 

Net cash provided by financing activities is:

a.$280,000.

b.$490,000.

c.$460,000.

d.$520,000.

 

 

110.If $250,000 of bonds are issued during the year but $100,000 of old bonds are retired during the year, the statement of cash flows will show a(n)

a.net increase in cash of $150,000.

b.net decrease in cash of $150,000.

c.increase in cash of $250,000 and a decrease in cash of $100,000.

d.net gain on retirement of bonds of $150,000.

 

 

111.Which of the following changes in retained earnings during a period will be reported in the financing activities section of the statement of cash flows?

1.Declaration and payment of a cash dividend during the period.

2.Net income for the period.

a.1

b.2

c.Neither 1 nor 2.

d.Both 1 and 2.

 

 

112.The statement of cash flows

a.is prepared instead of an income statement under generally accepted accounting principles.

b.is used to assess an entity’s ability to pay dividends and meet obligations.

c.is prepared from comparative income statements.

d.reflects earnings per share figures on a cash basis and on an accrual basis in the body of the statement.

 

 

113.In preparing the statement of cash flows, determining the net increase or decrease in cash requires the use of

a.the adjusted trial balance.

b.the current period’s balance sheet.

c.a comparative balance sheet.

d.a comparative income statement.

 

 

114.To determine the net cash provided (used) by operating activities, it is necessary to analyze

a.the current year’s income statement.

b.a comparative balance sheet.

c.additional information.

d.all of these.

 

 

115.Which of the following would not be needed to determine net cash provided by operating activities?

a.Depreciation expense

b.Change in accounts receivable

c.Payment of cash dividends

d.Change in prepaid expenses

 

 

116.When equipment is sold for cash, the amount received is reflected as a cash

a.inflow in the operating section.

b.inflow in the financing section.

c.inflow in the investing section.

d.outflow in the operating section.

 

 

 

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