Reference no: EM132606670

Questions -

Q1- Cash dividends of $72,577 were declared during the year. Cash dividends payable were $9,301 at the beginning of the year and $15,831 at the end of the year. The amount of cash for the payment of dividends during the year is

a. $72,577

b. $97,709

c. $66,047

d. $81,878

Q2- A building with a book value of $39,785 is sold for $59,762 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as an increase of

a. $39,785 from investing activities

b. $59,762 from investing activities and a deduction from net income of $19,977

c. $59,762 from investing activities

d. $39,785 from investing activities and an addition to net income of $19,977

Q3- Baxter Company reported a net loss of $16,356 for the year ended December 31. During the year, accounts receivable decreased by $4,535, merchandise inventory increased by $11,719, accounts payable increased by $9,634, and depreciation expense of $5,246 was recorded. During the year, operating activities under the indirect method

a. used net cash of $16,356

b. used net cash of $8,660

c. provided net cash of $8,660

d. provided net cash of $16,356

Q4- Zenith Corporation sells some of its used store fixtures. The acquisition cost of the fixtures is $12,101, and the accumulated depreciation on these fixtures is $7,036 at the time of sale. The fixtures are sold for $4,766. The value of this transaction in the investing section of the statement of cash flows is

a. $7,036

b. $14,371

c. $4,766

d. $12,101

Q5- The current period statement of cash flows includes the following:

Cash balance at the beginning of the period $424,795

Net cash flow from operating activities 181,556

Net cash flow used for investing activities 55,579

Net cash flow used for financing activities 101,482

The cash balance at the end of the period is:

a. $763,412

b. $504,869

c. $267,734

d. $449,290