Finance

Q: All of the following statements regarding a business segment are true except: A.A business segment is a part of a company's operations that serves a particular product line. B.A segment has assets, liabilities, and financial results of operations that can be distinguished from those of other parts of the company. C.A company's gain or loss from selling or closing down a segment is reported separately. D.The income tax effects of a discontinued segment are combined with income tax from continuing operations. E.A segment's income for the period prior to the disposal and the gain or loss resulting from disposing of the segment's assets are reported separately.

Q: Selected current year company information follows: Net income $ 15,953 Net sales 712,855 Total liabilities, beginning-year 83,932 Total liabilities, end-of-year 103,201 Total stockholders' equity, beginning-year"u00a6... 198,935 Total stockholders' equity, end-of-year 121,851 The return on total assets is: A.2.24% B.2.81% C.3.64% D.4.67% E.6.28%

Q: Desjardin Landscaping's income statement reports net income of $75,300, which includes deductions for interest expense of $11,500 and income taxes of $34,900. Its times interest earned is: A. 10.6 times B. 7.5 times C. 4.0 times D. 6.5 times E. 0.15 times

Q: Rajan Company's most recent balance sheet reported total assets of $1.9 million, total liabilities of $0.8 million, and total equity of $1.1 million. Its Debt to equity ratio is: A. 0.42 B. 0.58 C. 1.38 D. 0.73 E. 1.00

Q: How long a company holds inventory before selling it can be measured by dividing cost of goods sold by the average inventory balance to determine the: A.Accounts receivable turnover. B.Inventory turnover. C.Days' sales uncollected. D.Current ratio. E.Price earnings ratio.

Q: The market price of Horokhiv Corporation's common stock at the start of 2014 was $47.50 and it declared and paid cash dividends of $3.28 per share. The Dividend yield ratio is: A. 14.5%. B. 7.4%. C. 6.5%. D. 144.8%. E. 6.9%.

Q: Clairmont Industries reported Net income of $283,000 and average Total assets of $637,000. The Return on total assets is: A. 55.6%. B. 88.8%. C. 61.5%. D. 44.4%. E. 125.1%.

Q: Martinez Corporation reported Net sales of $765,000 and Net income of $142,000. The Profit margin is: A. 539.0%. B. 5.39%. C. 81.4%. D. 1.86%. E. 18.56%.

Q: Carducci Corporation reported Net sales of $3.6 million and beginning Total assets of $0.9 million and ending Total assets of 1.3 million. The average Total asset amount is: A. $2.3 million B. $2.7 million. C. $0.25 million. D. $0.36 million. E. $1.1 million.

Q: Carducci Corporation reported Net sales of $3.6 million and average Total assets of $1.1 million. The Total asset turnover is: A. 0.31 times B. 3.27 times. C. 4.30 times. D. 2.27 times. E. 0.77 times.

Q: Zhang Company reported Cost of goods sold of $835,000 and ending Inventory of $41,750. The Days' sales in inventory (rounded to whole days) is: A. 18 days B. 418 days. C. 10 days. D. 56 days. E. 20 days.

Q: Zhang Company reported Cost of goods sold of $835,000 and average Inventory of $41,750. The Inventory turnover ratio is: A. 0.5 times B. 418 times. C. 20 times. D. 56 times. E. 19 times.

Q: Zhang Company reported Cost of goods sold of $835,000, beginning Inventory of $37,200 and ending Inventory of $46,300. The average Inventory amount is: A. $37,200 B. $46,300. C. $83,500. D. $41,750. E. $9,100.

Q: Powers Company reported Net sales of $1,200,000 and Accounts Receivable, net of $78,500. The Day's sales uncollected (rounded to whole days) is: A. 24 days B. 15 days. C. 4 days. D. 56 days. E. 48 days.

Q: Powers Company reported Net sales of $1,200,000 and average Accounts Receivable, net of $78,500. The accounts receivable turnover ratio is: A. 0.65 times B. 14.3 times. C. 28.6 times D. 15.3 times E. 16.3 times.

Q: Net sales divided by Average accounts receivable, net is the: A.Days' sales uncollected. B.Average accounts receivable ratio. C.Current ratio. D.Profit margin. E.Accounts receivable turnover ratio.

Q: Jones Corp. reported current assets of $193,000 and current liabilities of $137,000 on its most recent balance sheet. The current assets consisted of $62,000 Cash; $43,000 Accounts Receivable; and $88,000 of Inventory. The acid-test (quick) ratio is: A.1.4:1 B.0.77:1. C. 0.54:1. D.1:1. E.0.64:1.

Q: A corporation reported cash of $27,000 and total assets of $461,000 on its balance sheet. Its common-size percent for cash equals: A.17.1%. B.58.6%. C.100%. D.5.86%. E.1707%.

Q: Common-size statements: A.Reveal changes in the relative importance of each financial statement item to a base amount. B.Do not emphasize the relative importance of each item. C.Compare financial statements over time. D.Show the dollar amount of change for financial statement items. E.Reveal patterns in data across successive periods.

Q: To compute trend percentages the analyst should: A.Select a base period, assign each item in the base period statement a weight of 100%, and then express financial numbers from other periods as a percent of their base period number. B.Subtract the analysis period number from the base period number. C.Subtract the base period amount from the analysis period amount, divide the result by the analysis period amount, then multiply that amount by 100. D.Compare amounts across industries using Dun and Bradstreet. E.Compare amounts to a competitor.

Q: Ash Company reported sales of $400,000 for Year 1, $450,000 for Year 2, and $500,000 for Year 3. Using Year 1 as the base year, what were the percentage increases for Year 2 and Year 3 compared to the base year? A.80% for Year 2 and 90% for Year 3. B.88% for Year 2 and 80% for Year 3. C.88% for Year 2 and 90% for Year 3. D.112.5% for Year 2 and 125% for Year 3. E.125% for Year 2 and 112.5% for Year 3.

Q: Yeats Corporation's sales in Year 1 were $396,000 and in Year 2 were $380,000. Using Year 1 as the base year, the percentage change for Year 2 compared to the base year is: A.104%. B.100%. C.4%. D.96%. E.4.2%.

Q: The dollar change for a comparative financial statement item is calculated by: A.Subtracting the analysis period amount from the base period amount. B.Subtracting the base period amount from the analysis period amount. C.Subtracting the analysis period amount from the base period amount, dividing the result by the base period amount, then multiplying that amount by 100. D.Subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, then multiplying that amount by 100. E.Subtracting the base period amount from the analysis amount, then dividing the result by the base amount.

Q: Which of the following items is not likely an extraordinary item? A.Write down of inventories. B.Condemnation of property by the city government. C.Loss of use of property due to a new and unexpected environmental regulation. D.Loss due to an unusual and infrequent calamity. E.Expropriation of property by a foreign government.

Q: All of the following are true of financial statement analysis report, except: A. Contains ambiguities and qualifications. B.Forces preparers to organize their reasoning and to verify the logic of analysis. C.Serves as a method of communication to users. D.Helps users and preparers to refine conclusions based on evidence from key building blocks. E.Enables readers to see the process and rationale of analysis.

Q: A financial statement analysis report does not include: A.An auditor statement. B.An analysis overview. C.Evidential matter. D.Qualitative and quantitative key factors. E..Inferences such as forecasts

Q: Guidelines (rules-of-thumb) are general standards of comparison developed from: A.Industry statistics from the government. B.Past experience. C.Analysis of competitors. D.Relations between financial items. E.Dun and Bradstreet.

Q: Industry standards for financial statement analysis: A.Are based on a single competitor's financial performance. B.Are set by the government. C.Are available for the financial performance and condition of the company's industry. D.Are based on rules of thumb. E.Compare a company's income with its prior year's income.

Q: Intra-company standards for financial statement analysis: A.Are based on a company's prior performance and relations between its financial items. B.Are often set by competitors. C.Are set by the company's industry through published statistics. D.Are based on rules of thumb. E.Are published in Dun and Bradstreet.

Q: Standards for comparisons in financial statement analysis do not include: A.Intra-company standards. B.Competitors' standards. C.Industry standards. D. Management standards E.. Guidelines (rules of thumb).

Q: The building blocks of financial statement analysis do not include: A.External analyst services. B.Solvency. C.Profitability. D.Market prospects. E.Liquidity and efficiency.

Q: Evaluation of company performance can include comparison and/or assessment of all but which of the following: A.Past performance. B.Current performance. C.Current financial position. D.Future performance and risk. E.External user needs and demands.

Q: Financial statement analysis involves all of the following except: A. The application of analytical tools to general-purpose financial statements and related data for making business decisions. B.Transforming accounting data into useful information for decision-making. C.Helping users to make better decisions. D.Helping to reduce uncertainty in decision-making. E.Assuring that the company will be more profitable in the future.

Q: A high level of expected risk suggests a low price-earnings (PE) ratio.

Q: The return on common stockholder's equity measures a company's success in earning net income for its owners.

Q: Ratios must refer to economically important relationships, such as a sale price compared to its cost.

Q: Noncash financing and investing activities are disclosed in a ____________ or in a separate ______________________________.

Q: ___________________ activities include those transactions that affect long-term liabilities and equity.

Q: ___________________ activities generally include those transactions and events that affect long-term assets.

Q: _____________ activities include the cash effects of transactions and events that determine net income.

Q: Babson reported assets of $13,362 million at January 1 and $13,369 million as of December 31 of the current year. Babson's net cash flows from operations were $2,204 million. Calculate the cash flow on total assets ratio for Babson.

Q: Faster Freight Co. reported net cash provided by operating activities of $142.7 million and average total assets of 1,762.5 million at the end of the year. Calculate the cash flow on total assets ratio for Faster Freight.

Q: Keita Co. reported net income of $213.4 million, net cash provided by operating activities of $151.3 million, total cash flows of $187.7 million, and average total assets of 2,314.8 million at the end of the year. Calculate the cash flow on total assets ratio for Keita.

Q: Tate Company's 2015 income statement and changes in selected balance sheet accounts are given below. Calculate the company's net cash provided or used by operating activities using the direct method. Tate Company Income Statement For Year Ended December 31, 2015 Sales $248,000 Cost of goods sold 116,000 Gross profit $132,000 Operating expenses: Wages and salaries expense $44,000 Rent expense 16,000 Depreciation expense 30,000 Amortization expense 12,000 Other expenses 18,000 120,000 Income from operations $ 12,000 Gain on sale of equipment 26,000 Income before taxes $ 38,000 Income tax expense 13,300 Net Income $ 24,700 The company also experienced the following during 2015: Increase in accounts receivable $ 4,000 Increase in accounts payable (all accounts payable transactions are for inventory) 16,000 Increase in income taxes payable 300 Decrease in prepaid expenses 10,000 Decrease in merchandise inventory 14,000 Decrease in long-term notes payable 20,000

Q: Use the information provided to calculate the cash paid for insurance for the period Prepaid insurance, beginning-year"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6 $ 7,000 Insurance expense"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6.. 16,800 Prepaid insurance, year-end"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6... 3,400 Cash paid for insurance"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6.. $

Q: Use the following information about the calendar-year cash flows of Park Company to prepare a statement of cash flows (direct method) and a schedule of noncash investing and financing activities. Cash and cash equivalents, beginning-year balance $ 18,000 Cash and cash equivalents, year-end balance 78,750 Cash payments for merchandise inventory 75,750 Cash paid for store equipment 15,750 Cash borrowed on three-month note payable 22,500 Cash dividends paid 12,000 Cash paid for salaries 39,000 Cash payments for other operating expenses 48,000 Building purchased and financed by long-term note payable 78,000 Cash received from customers 220,500 Cash interest received 8,250

Q: The following selected account balances are taken from a merchandising company's records: Dec. 31 Dec. 31, For the 2015 2014 Year 2015 Merchandise inventory $ 15,600 $ 21,200 Accounts receivable 42,000 36,000 Accounts payable 32,400 27,400 Salaries payable 4,400 3,000 Total assets 234,000 286,000 Sales $312,000 Cost of goods sold 165,600 Salaries expense 48,000 (a) Calculate the cash payments made during 2015 for merchandise. Assume all of the company's accounts payable balances result from merchandise purchases. (b) Calculate the cash receipts from customer sales during 2015. (c) Calculate the cash payments for salaries during 2015.

Q: Based on the information provided below for Krackle Corp., complete the following worksheet to be used to prepare the statement of cash flows using the indirect method. (a) Net income for the year was $30,000. (b) Dividends of $10,000 were declared and paid. (c) Krackle's only noncash expense was depreciation which totaled $50,000. (d) The company purchased plant assets for $70,000. (e) Notes payable in the amount of $40,000 were issued during the year for cash. Krackle Corporation Spreadsheet for Statement of Cash FlowsIndirect Method For Year Ended December 31, 2015 Analysis of Changes 12/31/14 Debit Credit 12/31/15 Balance SheetDebits Cash 70,000 60,000 Accounts receivable 180,000 190,000 Merchandise inventory 200,000 230,000 Plant assets 500,000 570,000 950,000 1,050,000 Balance SheetCredits Accumulated depreciation 100,000 150,000 Accounts payable 170,000 160,000 Notes payable 350,000 390,000 Capital stock 200,000 200,000 Retained earnings 130,000 150,000 950,000 1,050,000 Statement of Cash Flows Operating activities Net income Increase in accounts receivable Increase in merchandise inventory Decrease in accounts payable Depreciation expense Investing activities Cash paid to purchase plant assets Financing activities Cash paid for dividends Cash received from note payable Krackle Corporation Spreadsheet for Statement of Cash FlowsIndirect Method For Year Ended December 31, 2015 Analysis of Changes 12/31/14 Debit Credit 12/31/15 Balance SheetDebits Cash 70,000 60,000 Accounts receivable 180,000 f 10,000 190,000 Merchandise inventory 200,000 g 30,000 230,000 Plant assets 500,000 d 70,000 570,000 950,000 1,050,000 Balance SheetCredits Accumulated depreciation 100,000 c 50,000 150,000 Accounts payable 170,000 h 10,000 160,000 Notes payable 350,000 e 40,000 390,000 Capital stock 200,000 200,000 Retained earnings 130,000 b 10,000 a 30,000 150,000 950,000 1,050,000 Statement of Cash Flows Operating activities Net income a 30,000 Increase in accounts receivable f 10,000 Increase in merchandise inventory g 30,000 Decrease in accounts payable h 10,000 Depreciation expense c 50,000 Investing activities Cash paid to purchase plant assets d 70,000 Financing activities Cash paid for dividends b 10,000 Cash received from note payable e 40,000 250,000 250,000

Q: Use the following company information to calculate net cash provided or used by investing activities: (a) Equipment with a book value of $175,000 and an original cost of $300,000 was sold at a loss of $17,000. (b) Paid $62,000 cash for a new truck. (c) Sold land costing $32,000 for $36,000 cash, realizing a $4,000 gain. (d) Purchased treasury stock for $61,000 cash. (e) Long-term investments in stock are sold for $41,000 cash, realizing a gain of $3,500.

Q: The following information is available for the Brookstone Company: Brookstone Company Balance Sheets At December 31 2015 2014 Assets: Cash $ 29,568 $ 27,648 Accounts receivable 38,616 35,280 Merchandise inventory 87,750 74,052 Long-term investments 67,080 67,680 Machinery 210,600 174,600 Accumulated depreciation (40,260 ) (37,440 ) Total assets $393,354 $341,820 Liabilities: Accounts payable $ 78,000 $ 48,456 Income taxes payable 12,870 12,240 Bonds payable 58,500 79,200 Total liabilities $149,370 $139,896 Equity: Common stock 140,400 115,200 Paid-in capital in excess of par 15,600 10,800 Retained earnings 87,984 75,924 Total equity $243,984 $201,924 Total liabilities and equity $393,354 $341,820 Brookstone Company Income Statement For Year Ended December 31, 2015 Sales $288,000 Cost of goods sold $97,080 Depreciation expense 35,280 Other operating expenses 57,600 Interest expense 2,400 (192,360 ) Other gains (losses): Loss on sale of equipment (10,080 ) Income before taxes 85,560 Income taxes expense 33,180 Net income $ 52,380 Additional information: (1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired. (2) Old machinery with an original cost of $45,060 was sold for $2,520 cash. (3) New machinery was purchased for $81,060 cash. (4) Cash dividends of $40,320 were paid. (5) Additional shares of stock were issued for cash. Prepare a complete statement of cash flows for calendar-year 2013 using the indirect method.

Q: The following information is available for the Aarons Corporation: Aarons Corporation Balance Sheets At December 31 2015 2014 Assets: Cash $ 24,640 $ 23,040 Accounts receivable 32,180 29,400 Merchandise inventory 73,125 61,710 Long-term investments 55,900 56,400 Equipment 175,500 145,500 Accumulated depreciation (33,550 ) (31,200 ) Total assets $327,795 $284,850 Liabilities: Accounts payable $ 65,000 $ 40,380 Income taxes payable 10,725 10,200 Bonds payable 48,750 66,000 Total liabilities $124,475 $116,580 Equity: Common stock 117,000 96,000 Paid-in capital in excess of par 13,000 9,000 Retained earnings 73,320 63,270 Total equity $203,320 $168,270 Total liabilities and equity $327,795 $284,850 Aarons Corporation Income Statement For Year Ended December 31, 2013 Sales $240,000 Cost of goods sold $80,900 Depreciation expense 29,400 Other operating expenses 48,000 Interest expense 2,000 (160,300 ) Other gains (losses): Loss on sale of equipment (8,400 ) Income before taxes 71,300 Income taxes expense 27,650 Net income $ 43,650 Additional information: (1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired. (2) Old equipment with an original cost of $37,550 was sold for $2,100 cash. (3) New equipment was purchased for $67,550 cash. (4) Cash dividends of $33,600 were paid. (5) Additional shares of stock were issued for cash. Prepare a complete statement of cash flows for calendar-year 2015 using the indirect method.

Q: Rowan, Inc.'s, income statement is shown below. Based on this income statement and the other information provided, calculate the net cash provided by operations using the indirect method. Rowan, Inc. Income Statement For Year Ended December 31, 2015 Sales $248,000 Cost of goods sold 116,000 Gross profit $132,000 Operating expenses Wages and salaries expense $ 44,000 Rent expense 16,000 Depreciation expense 30,000 Other operating expenses 18,000 108,000 Income from operations $ 24,000 Gain on sale of equipment 26,000 Income before income taxes $ 50,000 Income taxes expense 17,500 Net income $ 32,500 Additional information: Increase in accounts receivable $ 4,000 Increase in accounts payable 16,000 Increase in income taxes payable 300 Decrease in prepaid expenses 10,000 Decrease in merchandise inventory 14,000 Decrease in long-term notes payable 20,000

Q: Based on the following income statement and balance sheet for Bankowski Corporation, determine the cash flows from operating activities using the indirect method. Bankowski Corporation Income Statement For Year Ended December 31, 2015 Sales $504,000 Cost of goods sold $327,600 Depreciation expense 33,000 Other operating expenses 125,500 (486,100 ) Other gains (losses): Gain on sale of equipment 5,200 Income before taxes $ 23,100 Income tax expense (4,800 ) Net income $ 18,300 Bankowski Corporation Balance Sheets At December 31 Assets 2015 2014 Cash $ 62,650 $ 55,800 Accounts receivable 21,000 29,000 Inventory 58,000 52,100 Equipment 240,000 222,000 Accumulated depreciation (97,000 ) ( 96,000 ) Total assets $284,650 $262,900 Liabilities: Accounts payable $ 28,400 $ 23,700 Income taxes payable 1,050 1,200 Total liabilities $ 29,450 $ 24,900 Equity: Common stock $106,000 $106,000 Paid-in Capital in excess of par value 18,000 18,000 Retained earnings 131,200 114,000 Total equity $255,200 $238,000 Total liabilities and equity $284,650 $262,900

Q: O; 2. I; 3. F; 4. O; 5. O; 6. N; 7. O; 8. F; 9. I; 10. N Short Answer Questions

Q: Match each of the following items with the appropriate definitions. (A) Financing activities (B) Investing activities (C) Statement of cash flows (D) Indirect method (E) Direct method (F) Operating activities __________ (1) A method of computing and reporting that involves adjusting the net income amount by adding and subtracting items that are necessary to yield net cash provided (used) by operating activities. __________ (2) A financial statement that reports the cash inflows and cash outflows for an accounting period, and classifies those cash flows as operating, investing, or financing activities. __________ (3) A method of computing and reporting the net cash provided (used) by operating activities that lists the major items of operating cash receipts, and then subtracts the major items of operating cash payments. __________ (4) Transactions that include making and collecting notes receivable or purchasing and selling plant assets, or investments in other than cash equivalents and trading securities. __________ (5) Transactions with a company's owners and creditors that include obtaining cash from issuing debt and repaying the amounts borrowed, and obtaining cash from or distributing cash to owners. __________ (6) Activities that involve the production or purchase of merchandise and the sale of goods or services to customers, including expenditures related to administering the business.

Q: Northington, Inc. is preparing the company's statement of cash flows for the fiscal year just ended. Using the following information, determine the amount of cash flows from financing activities: Net income $182,000 Gain on the sale of equipment 12,300 Proceeds from the sale of equipment 92,300 Depreciation expense " equipment 50,000 Payment of bonds at maturity 100,000 Purchase of land 200,000 Issuance of common stock 300,000 Increase in merchandise inventory 35,400 Decrease in accounts receivable 28,800 Increase in accounts payable 23,700 Payment of cash dividends 32,000 A.$(168,000). B.$200,000. C.$168,000. D.$(191,700). E.$191,700.

Q: A dividend payment to shareholders during the year should be reported on the statement of cash flows as: A. An increase in cash flows from financing activities B. An increase in cash flows from investing activities C. A decrease in cash flows from operating activities D. A decrease in cash flows from investing activities E. An decrease in cash flows from financing activities

Q: A decrease in the inventory account during the year should be reported on the statement of cash flows as: A. An increase in cash flows from operating activities B. An increase in cash flows from investing activities C. A decrease in cash flows from operating activities D. A decrease in cash flows from investing activities E. An increase in cash flows from financing activities

Q: An increase in the accounts receivable account during the year should be reported on the statement of cash flows as: A. An increase in cash flows from operating activities B. An increase in cash flows from investing activities C. A decrease in cash flows from operating activities D. A decrease in cash flows from investing activities E. An increase in cash flows from financing activities

Q: Marshland Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Cash dividends declared for the year $ 40,000 Cash dividends payable at the beginning of the year $ 17,000 Cash dividends payable at the end of the year $ 13,000 The amount of cash paid for dividends was: A.$44,000. B.$40,000. C.$57,000. D.$53,000. E.$36,000.

Q: Fernwood Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $233,000 Cash dividends declared for the year $ 50,000 Proceeds from the sale of equipment $ 85,000 Gain on the sale of equipment $ 4,500 Cash dividends payable at the beginning of the year $ 22,000 Cash dividends payable at the end of the year $ 30,000 Net income for the year $110,000 The amount of cash paid for dividends was: A.$52,000. B.$60,000. C.$58,000. D.$50,000. E.$42,000.

Q: Alvez reports net income of $305,000 for the year ended December 31. It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment. Its comparative balance sheet reveals a $40,200 increase in accounts receivable, a $10,200 decrease in prepaid expenses, a $15,200 increase in accounts payable, a $12,500 decrease in wages payable, a $75,000 increase in equipment, and a $100,000 decrease in notes payable. Calculate the net increase in cash for the year. A.$216,400. B.$281,400. C.$381,400. D.$206,400. E.$406,400.

Q: Alvez Company reports net income of $305,000 for the year ended December 31. It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment. Its comparative balance sheet reveals a $40,200 increase in accounts receivable, a $10,200 decrease in prepaid expenses, a $15,200 increase in accounts payable, a $12,500 decrease in wages payable, and a $100,000 decrease in notes payable. Calculate the cash provided (used) in operating activities using the indirect method. A.$461,800. B.$371,400. C.$381,400. D.$351,000. E.$361,000.

Q: Scranton, Inc. reports net income of $230,000 for the year ended December 31. It also reports $87,700 depreciation expense and a $5,000 gain on the sale of equipment. Its comparative balance sheet reveals a $35,500 decrease in accounts receivable, a $15,750 increase in accounts payable, and a $12,500 decrease in wages payable. Calculate the cash provided (used) in operating activities using the indirect method. A.$376,450. B.$351,450. C.$356,450. D.$319,950. E.$263,750.

Q: Bagwell's net income for the year ended December 31, Year 2 was $175,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash paid for dividends during Year 2. At December 31 Year 2 Year 1 Common Stock, $5 par value $500,000 $450,000 Paid-in capital in excess of par 948,000 853,000 Retained earnings 688,000 582,000 A.$79,000. B.$201,000. C.$95,000. D.$50,000. E.$69,000.

Q: Jeffreys Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $240,000 was sold for a $10,000 loss in Year 2. The following selected information is available for Jeffreys Company from its comparative balance sheet. Compute the cash received from the sale of the equipment. At December 31 Year 2 Year 1 Equipment $510,000000 $750,000 Accumulated Depreciation-Equipment 328,000 500,000 A.$62,000. B.$38,000. C.$28,000. D.$18,000. E.$58,000.

Q: Jamison Company reports depreciation expense of $35,000 for Year 2. Also, equipment costing $140,000 was sold for a $5,000 gain in Year 2. The following selected information is available for Jamison Company from its comparative balance sheet. Compute the cash received from the sale of the equipment. At December 31 Year 2 Year 1 Equipment $610,000 $750,000 Accumulated Depreciation-Equipment 428,000 500,000 A.$23,000. B.$35,000. C.$38,000. D.$40,000. E.$67,000.

Q: Mercury Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $150,000 was sold for its book value in Year 2. The following selected information is available for Mercury Company from its comparative balance sheet. Compute the cash received from the sale of the equipment. At December 31 Year 2 Year 1 Equipment $600,000 $750,000 Accumulated Depreciation-Equipment 428,000 500,000 A.$32,000. B.$68,000. C.$38,000. D.$40,000. E.$36,000.

Q: In preparing Marjorie Company's statement of cash flows for the most recent year, the following information is available: Purchase of equipment $260,000 Proceeds from the sale of equipment $87,000 Purchase of land $91,000 Net cash flows from investing activities for the year were: A.$438,000 of net cash used. B.$438,000 of net cash provided. C.$264,000 of net cash used. D.$351,000 of net cash used. E.$264,000 of net cash provided.

Q: The accountant for Mandarin Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $819,000 Net income for the year $230,000 Cash dividends declared for the year $ 42,000 Retained earnings balance at the end of the year $1,007,000 Cash dividends payable at the beginning of the year $ 10,000 Cash dividends payable at the end of the year $ 11,000 What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows? A.$42,000. B.$43,000. C.$63,000. D.$1,000. E.$41,000.

Q: The accountant for Huckleberry Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $151,000 Cash dividends declared for the year $ 46,000 Net income for the year $ 92,000 What is the ending balance for retained earnings? A.$264,000. B.$13,000. C.$243,000. D.$197,000. E.$105,000.

Q: The accountant for Crusoe Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $126,000 Cash dividends declared for the year $ 46,000 Proceeds from the sale of equipment $ 81,000 Gain on the sale of equipment $ 7,000 Cash dividends payable at the beginning of the year $ 18,000 Cash dividends payable at the end of the year $ 20,000 Net income for the year $ 92,000 The amount of cash dividends paid during the year would be: A.$48,000. B.$46,000. C.$8,000. D.$64,000. E.$44,000.

Q: Bagrov Corporation had a net decrease in cash of $10,000 for the current year. Net cash used in investing activities was $52,000 and net cash used in financing activities was $38,000. What amount of cash was provided (used) in operating activities? A.$ 100,000 provided. B.$(100,000) used. C.$ 80,000 provided. D.$ (80,000) used. E.$ (10,000) used.

Q: Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $28,000; net cash used in investing activities was $10,000 and net cash used in financing activities was $12,000. If the beginning cash balance is $5,000, what is the ending cash balance? A.$55,000. B.$45,000. C.$31,000. D.$ 6,000. E.$11,000.

Q: Analysis reveals that a company had a net increase in cash of $20,000 for the current year. Net cash provided by operating activities was $18,000; net cash used in investing activities was $10,000 and net cash provided by financing activities was $12,000. If the year-end cash balance is $24,000, the beginning cash balance was: A.$4,000. B.$16,000. C.$44,000. D.$40,000. E.$39,000.

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