Reference no: EM132543801
Problem 1: Kanet Company issued common stock for proceeds of $386,000 during 2017. The company paid dividends of $80,000 and issued a long-term note payable for $95,000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $15,000. The financing section of the statement of cash flows will report net cash inflows of $.
Problem 2: Spa Company uses the direct method in determining net cash provided by operating activities. The income statement shows income tax expense $85,000. Income taxes payable were $35,000 at the beginning of the year and $20,000 at the end of the year. Cash payments for income taxes are $.
Problem 3: The following data is available for Sampson Corporation.
Sampson Corporation Accounts
Item Amount
Net income $200,000
Depreciation expense 60,000
Dividends paid 90,000
Loss on sale of land 15,000
Decrease in accounts receivable 30,000
Decrease in accounts payable 45,000
Net cash provided by operating activities is $.
Problem 4: The following selected amounts are available for Clark Company.
Clark Company Accounts
Item Amount
Retained earnings (beginning) $900
Net loss 150
Cash dividends declared 100
Stock dividends declared 100
What is its ending retained earnings balance?
A. $750
B. $550
C. $700
D. $800
Problem 5: Treasury stock purchased for $25 per share that is reissued at $20 per share, results in a Loss on Sale of Treasury Stock being recognized on the income statement.
Problem 6: Using the indirect method, an increase in accounts receivable during a period is deducted from net income in calculating cash provided by operations.
Problem 7: Under the cost method, Treasury Stock is debited at the price paid to reacquire the shares, and the same amount is credited to Treasury Stock when the shares are sold.
Problem 8: Gonzo Company reports a $25,000 increase in inventory and a $12,000 decrease in accounts payable during the year. Cost of Goods Sold for the year was $185,000. Using the direct method of reporting cash flows from operating activities, cash payments made to suppliers were
A. $185,000
B. $197,000
C. $148,000
D. $222,000
Problem 9: A company had net income of $210,000. Depreciation expense is $27,000. During the year, Accounts Receivable and Inventory increased $17,000 and $42,000, respectively. Prepaid Expenses and Accounts Payable decreased $5,000 and $6,000, respectively. There was also a loss on the sale of equipment of $2,000. Cash provided by operating activities was $.
Problem 10: The payment of interest on bonds payable is classified as a cash outflow from operating activities.
Group of answer choices
True
False
Problem 11: Jean's Vegetable Market had the following transactions during 2017:
Issued $50,000 of par value common stock for cash.
Repaid a 6-year note payable in the amount of $22,000.
Acquired land by issuing common stock of par value $100,000.
Declared and paid a cash dividend of $2,000.
Sold a long-term investment (cost $3,000) for cash of $8,000.
Acquired an investment in IBM stock for cash of $15,000.
What is the net cash provided used by investing activities?
A. ($7,000)
B. $15,000
C. $8,000
D. $33,000
Problem 12: If Vickers Company issues 5,000 shares of $5 par value common stock for $175,000,
A. Cash will be debited for $150,000
B. Common Stock will be credited for $175,000
C. Paid-In Capital in Excess of Par will be credited for $25,000
D. Paid-In Capital in Excess of Par will be credited for $150,000