Reference no: EM132479814
During the quarter ended 3/31/2015, Clarke Biscuits Inc. collected $100 of cash from customers, paid $60 of cash to suppliers, paid $20 of cash to employees and other creditors, and recorded $10 of depreciation expense. There were no other cash flows related to operating activities.
Problem 1: What was Clarke's Cash Flow from Operations during the quarter ended 3/31/2015?
- $30
- $10
- $20
- $(20)
- $100
Problem 2: During 2015, Rindal Vinyards Inc. had EBITDA of $1000, Depreciation and Amortization Expense of $200, Interest Expense of $100, and Tax Expense of $50. What was Rindal Vinyards' Net Income in 2015?
- $1000
- $1250
- $750
- $650
- $950
Problem 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 Financing Activities during 2015?
- $100,000
- $150,000
- $300,000
- $250,000
- $350,000
Problem 4: Stewart Export Co. had the following Statement of Cash Flows for the year ended 03/31/15:
($ millions)Year ended 3/13/15Net Income1100
Depreciation200
Gain on sale of equipment(400)
Chg in Accounts Receivable350
Chg in Inventory(200)
Chg in Other Current Assets10
0Chg in Accounts Payable(50)
Net Cash from Operations1250
Capital Expenditures(1200)
Sale of Equipment700
Net Cash from Investing(500)
What was the book value of the equipment Stewart sold during the year ended 03/31/15?
- $1,100
- $900
- $300
- $500
- $700
Problem 5: Little Scuba Pty had the following line item on its 12/31/2014 Balance Sheet:
12/31/2014Inventory$20,000
Little Scuba's Statement of Cash Flows had the following line item:
2014Change 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?
- $0
- $20,000
- $14,000
- $6,000
- $26,000
Problem 6: A new accountant, Tia Count, 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 Tia made in computing straight-line Depreciation Expense, which should have been $150. What is Medina's Cash Flow from Operations after fixing this mistake? (you can ignore taxes)
- $120
- $70
- $220
- $50
- $350
Problem 7: Josey Doakes was reading the balance sheet of Gogoldze Inc. when she spilled grape juice on it. After the juice spill, the balance sheet looked like this:
($ millions)12/31/2015
Cash90
Accounts Receivable210
Inventory410
Other Current AssetsgrapeCurrent Assetsjuice
Net Property, Plant, & Equipment1,080
Total AssetsgrapejuiceAccounts Payable115
Other Current Liabilities260
Current Liabilities375
Long-term Liabilities860
Common Stock50
Additional Paid-in-Capital300
Retained Earnings285
Total Liabilities and SE1,870
What was Gogoldze Inc.'s Other Current Assets at 12/31/2015?
- $710
- $370
- $790
- $120
- $80
Problem 8: Francisco Olivas of Olivas Medical Supply Company was reading the financial statements of Alvear Corp. to decide whether he wanted to try to acquire the company. He noticed some mistakes in the Alvear Corp. Income Statement:
($ millions)Year ended 12/31/2015Sales revenue$1200
Gain on sale of equipment200
Total Revenue1400
Cost of Goods Sold(800)
Gross Profit600
SG&A Expense(400
)Interest Expense(50)
Operating Income150
Interest Revenue20
Pre-tax income170
Income Tax Expense(61)
Net Income109
What is Alvear Corp.'s Operating Income for the year ended 12/31/2015 after correcting the mistakes?
- $0
- $200
- ($50)
- $170
- ($30)