Reference no: EM133154606
Questions -
Q1. A company with 84,435 authorized shares of $6 par common stock issued 44,890 shares at $15 per share. Subsequently, the company declared a 2% stock dividend on a date when the market price was $28 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?
a. $25,138
b. $47,284
c. $5,387
d. $19,752
Q2. The Dayton Corporation began the current year with a retained earnings balance of $17,458. During the year, the company corrected an error made in the prior year, which was a failure to record a depreciation expense of $2,343 on equipment. Also, during the current year, the company earned net income of $10,277 and declared cash dividends of $6,104. Compute the year-end retained earnings balance.
a. $36,182
b. $19,288
c. $17,458
d. $21,631
Q3. The charter of a corporation provides for the issuance of 120,000 shares of common stock. Assume that 52,000 shares were originally issued and 4,300 were subsequently reacquired. What is the number of shares outstanding?
a. 47,700
b. 52,000
c. 4,300
d. 56,300
Q4. The charter of a corporation provides for the issuance of 107,327 shares of common stock. Assume that 36,714 shares were originally issued and 4,092 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared?
a. $36,714
b. $107,327
c. $4,092
d. $65,244
Q5. Income tax expense was $385,755 for the year. Income tax payable was $31,234 and $43,973 at the beginning and end of the year, respectively. Cash payments for income tax reported on the statement of cash flows using the direct method is
a. $373,016
b. $460,962
c. $385,755
d. $398,494
Q6. The net income reported on the income statement for the current year was $260,471. Depreciation recorded on fixed assets and amortization of patents for the year were $34,222, and $11,273, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:
|
|
End
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Beginning
|
|
Cash
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$46,631
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$53,969
|
|
Accounts receivable
|
124,845
|
100,376
|
|
Inventories
|
108,055
|
86,787
|
|
Prepaid expenses
|
3,803
|
6,039
|
|
Accounts payable (merchandise creditors)
|
52,956
|
68,449
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What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?
a. $364,960
b. $342,414
c. $178,528
d. $246,972
Q7. The following selected account balances appeared on the financial statements of the Washington Company. Use these balances to answer the questions that follow.
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Accounts Receivable, Jan. 1
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$14,678
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|
Accounts Receivable, Dec. 31
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7,630
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Accounts Payable, Jan. 1
|
5,229
|
|
Accounts Payable, Dec. 31
|
7,164
|
|
Inventory, Jan. 1
|
7,799
|
|
Inventory, Dec. 31
|
16,550
|
|
Sales
|
66,678
|
|
Cost of Goods Sold
|
30,967
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The Washington Company uses the direct method to calculate net cash flow from operating activities. Assume that all accounts payable are owed to merchandise suppliers.
a. $59,630
b. $66,678
c. $71,791
d. $73,726
Q8. The following information is available from the current period financial statements:
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Net income
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$112,109
|
|
Depreciation expense
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24,192
|
|
Increase in accounts receivable
|
18,314
|
|
Decrease in accounts payable
|
24,851
|
The net cash flow from operating activities using the indirect method is
a. $81,380
b. $112,109
c. $93,136
d. $179,466
Q9. Given
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Privett Company
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|
Accounts payable
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$39,946
|
|
Accounts receivable
|
71,504
|
|
Accrued liabilities
|
6,277
|
|
Cash
|
18,439
|
|
Intangible assets
|
43,744
|
|
Inventory
|
81,468
|
|
Long-term investments
|
99,896
|
|
Long-term liabilities
|
76,063
|
|
Marketable securities
|
32,018
|
|
Notes payable (short-term)
|
22,911
|
|
Property, plant, and equipment
|
665,134
|
|
Prepaid expenses
|
1,845
|
Based on the data for Privett Company, what is the amount of working capital?
a. $121,961
b. $136,140
c. $205,274
d. $1,014,048