1. A company had net income of $210000. Depreciation expense is $27000. During the year Accounts Receivable and Inventory increased…

1. A company had net income of $210000. Depreciation expense is $27000. During the year Accounts Receivable and Inventory increased $17000 and $42000 respectively. Prepaid Expenses and Accounts Payable decreased $5000 and $6000 respectively. There was also a loss on the sale of equipment of $2000. How much cash was provided by operating activities?
2. The following data are available for Two-off Company.
Increase in accounts payable$120000
Increase in bonds payable 300000
Sale of investments150000
Issuance of common stock 160000
Payment of cash dividends 90000
Net cash provided by financing activities is:
3. Investing activities include (Points : 1) collecting cash on loans made.
obtaining cash from creditors.
obtaining capital from owners.
repaying money previously borrowed
4. The cash effects of transactions that create revenues and expenses arefinancing activities.
investing activities.
operating activities.
processing activities.
5. If a gain of $12000 is incurred in selling (for cash) office equipment having a book value of $110000 the total amount reported in the cash flows from investing activities section of the statement of cash flows is
6.If a company has both an inflow and outflow of cash related to property plant and equipment the
two cash effects can be netted and presented as one item in the investing activities section.
cash inflow and cash outflow should be reported separately in the investing activities section.
two cash effects can be netted and presented as one item in the financing activities section.
cash inflow and cash outflow should be reported separately in the financing activities section.
7. Ale Company reports a $16000 increase in inventory and a $8000 increase in accounts payable during the year. Cost of Goods Sold for the year was $150000. The cash payments made to suppliers were (Points : 1) $150000
$158000
$126000
$174000
8. Which of the following would be subtracted from net income using the indirect method? (Points : 1) Depreciation expense
An increase in accounts receivable
An increase in accounts payable
A decrease in prepaid expenses
9. Lending money and collecting the loans are (Points : 1) operating activities.
investing activities.
financing activities.
Non-cash investing and financing activities.
10. The acquisition of land by issuing common stock is (Points : 1) a noncash transaction which is not reported in the body of a statement of cash flows.
a cash transaction and would be reported in the body of a statement of cash flows.
a noncash transaction and would be reported in the body of a statement of cash flows.
only reported if the statement of cash flows is prepared using the direct method.
11. Kanet Company issued common stock for proceeds of $386000 during 2014. The company paid dividends of $80000 and issued a long-term note payable for $95000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $15000. The financing section of the statement of cash flows will report net cash inflows of (Points : 1) $291000.
$481000.
$306000.
$371000
12. Adama Company reported a net loss of $6000 for the year ended December 31 2014. During the year accounts receivable increased $15000 merchandise inventory decreased $12000 accounts payable decreased by $20000 and depreciation expense of $12000 was recorded. During 2014 operating activities (Points : 1) used net cash of $17000.
used net cash of $29000.
provided net cash of $24000.
provided net cash of $21000.
used net cash of $25000.
provided net cash of $25000.
provided net cash of $10000.
1. Issued $50000 of par value common stock for cash.
2. Repaid a 6 year note payable in the amount of $22000.
3. Acquired land by issuing common stock of par value $50000.
4. Declared and paid a cash dividend of $7000.
5. Sold a long-term investment (cost $3000) for cash of $6000.
6. Acquired an investment in IBM stock for cash of $10000.
What is the net cash provided by financing activities? (Points : 1)
$28000
$67000
$0
$856000 net cash inflow.
$860000 net cash outflow.
$824000 net cash inflow.
$210000.
$90000.
$270000.
$299000.
$213000.
$280000.
$24700
$30800
$27800
will not be able to pay cash dividends.
will not be able to get a loan.
will not be able to make capital expenditures.
$40000
$120000
$60000