Reference no: EM132905508

Questions -

Q1. A company had net income of $180,000. Depreciation expense is $26,000. During the year, Accounts Receivable and Inventory increased $15,000 and $40,000, respectively. Prepaid Expenses and Accounts Payable decreased $2,000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. How much cash was provided by operating activities?

a. $146,000

b. $152,000

c. $226,000

d. $238,000

Q2. The quick ratio:

a. Cannot be higher than the current ratio.

b. Is computed by dividing current assets by current liabilities.

c. Is always higher than the current ratio.

d. May be higher or lower than the current ratio

Q3. A company had net income of $349680. Depreciation expense is $32240. During the year, accounts receivable and inventory increased $18600 and $49600, respectively. Prepaid expenses and accounts payable decreased $2480 and $17360, respectively. There was also a loss on the sale of equipment of $21080. How much cash was provided by operating activities?

Q4. Cash dividends of $50,000 were declared during the year. Cash dividends payable were $10,000 and $5,000 at the beginning and end of the year, respectively. The amount of cash for the payment of dividends during the year is?

Q5. Firefly Inc. sold land for $225,000 cash. The land had been purchased five years earlier for $275,000. The loss on the sale was reported on the income statement. On the statement of cash flows, what amount should Firefly report as an investing activity from the sale of the land?