Reference no: EM131073845

1.  During the quarter ended 3/31/2015, Clarke Biscuits Inc. collected $100 of cash from customers, paid $60 of cash to suppliers, paid $30 of cash to employees and other creditors, and recorded a $5 loss on sale of equipment. There were no other cash flows related to operating activities. What was Clarke's Cash Flow from Operations during the quarter ended 3/31/2015?

$20
$15
$25
$10
$5

2. During 2015, RindalVinyards Inc. had Revenue of $1000, Depreciation and Amortization Expense of $100, Interest Expense of $100, and Tax Expense of $50. All other Expenses were $400. What was RindalVinyards' EBITDA for 2015?

$1000
$600
$500
$400
$250

3. Geller Florist Inc. had the following transactions during 2015: Purchased a $200,000 warehouse with $50,000 cash and a $150,000 mortgage from a bank. Raised $100,000 from selling new shares of stock to investors. The cash was used to buy land to grow tulips. Sold an old building for $50,000 (and suffered a loss on sale of $5,000) and used the cash to buy a new truck. What is the net impact of these transactions on Geller's Cash from Investing Activities during 2015?

$(145,000)
$(295,000)
$(150,000)
$(300,000)
$(50,000)

4. Stewart Export Co. had the following Statement of Cash Flows for the year ended 03/31/15:

($ millions) Year ended 3/31/15
Net Income 1100
Depreciation 200
Loss on sale of equipment 400
Chg in Accounts Receivable 350
Chg in Inventory (200)
Chg in Other Assets 100
Chg in Accounts Payable (50)
Chg in Other Payables 150
Net Cash from Operations 2050
Capital Expenditures (1200)
Sale of Equipment 700
Net Cash from Investing (500)

What was the book value of the equipment Stewart sold during the year ended 03/31/15?

$300
$1,100
$100
$700
$1,300

5. Little Scuba Pty had the following line item on its 12/31/2014 Balance Sheet:
12/31/2014
Inventory $20,000
Little Scuba's Statement of Cash Flows had the following line item:
2014
Change in Inventory $6,000
Assume that the company made no acquisitions or divestitures and that all operations are in Australia. How much Inventory did Little Scuba have on 12/31/2013?

$14,000
$0
$6,000
$20,000
$26,000

6. A new accountant, Costa Goodsold, put together a preliminary version of Medina Co.'s financial statements. Medina's Net Income was $500, its Depreciation Expense was $100, and its Cash Flow from Operations was $70. The CEO found an error that Costa made in computing straight-line Depreciation Expense, which should have been $50. What is Medina's Cash Flow from Operations after fixing this mistake? (you can ignore taxes)

$20
$70
$170
$450
$120

7. Joe Doakes was reading the balance sheet of Gogoldze Inc. when he spilled coffee on it. After the coffee spill, the balance sheet looked like this:
($ millions) 12/31/2015
Cash 100
Accounts Receivable 245
Inventory 450
Other Current Assets 60
Current Assets 855
Net Property, Plant, & Equipment 1,160
Total Assets 2,015
Accounts Payable 160
Other Current Liabilities 250
Current Liabilities 410
Long-term Liabilities 900
Common Stock 50
Additional Paid-in Capital 300
Retained Earnings coffee
Total Liabilities and SE coffee
What was Gogoldze Inc.'s Retained Earnings at 12/31/2015?

($55)
$550
$3,675
$355
$960

8. Francisco Olivas of Olivas Medical Supply Company was reading the financial statements of Alvear Corp. to decide whether he wanted to try to acquire the company. He noticed some mistakes in the Alvear Corp. Income Statement:

($ millions) Year ended 12/31/2015
Sales revenue $1200
Gain on sale of equipment 200
Total Revenue 1400
Cost of Goods Sold (800)
Gross Profit 600
SG&A Expense (400)
Interest Expense (50)
Operating Income 150
Interest Revenue 20
Pre-tax income 170
Income Tax Expense (61)
Net Income 109
What is Alvear Corp.'s Operating Income for the year ended 12/31/2015 after correcting the mistakes?

$0
$170
$200
($50)
($30)