1. A company had net income of $210,000. Depreciation expense is $27,000. During the year, Accounts Receivable and Inventory increased...

          1. 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. How much cash was provided by operating activities?

2.            The following data are available for Two-off Company.

Increase in accounts payable$120,000

Increase in bonds payable       300,000

Sale of investments150,000

Issuance of common stock      160,000

Payment of cash dividends        90,000

Net cash provided by financing activities is:

3. Investing activities include (Points : 1)       collecting cash on loans made.

      obtaining cash from creditors.

      obtaining capital from owners.

      repaying money previously borrowed

4. The cash effects of transactions that create revenues and expenses are                                               financing activities.

      investing activities.

      operating activities.

      processing activities.

5. If a gain of $12,000 is incurred in selling (for cash) office equipment having a book value of $110,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

6.If a company has both an inflow and outflow of cash related to property, plant, and equipment, the           

                                              two cash effects can be netted and presented as one item in the investing activities section.

      cash inflow and cash outflow should be reported separately in the investing activities section.

      two cash effects can be netted and presented as one item in the financing activities section.

      cash inflow and cash outflow should be reported separately in the financing activities section.

7. Ale Company reports a $16,000 increase in inventory and a $8,000 increase in accounts payable during the year. Cost of Goods Sold for the year was $150,000. The cash payments made to suppliers were (Points : 1)       $150,000

      $158,000

      $126,000

      $174,000

8. Which of the following would be subtracted from net income using the indirect method? (Points : 1)       Depreciation expense

      An increase in accounts receivable

      An increase in accounts payable

      A decrease in prepaid expenses

9. Lending money and collecting the loans are (Points : 1)       operating activities.

      investing activities.

      financing activities.

      Non-cash investing and financing activities.

10. The acquisition of land by issuing common stock is (Points : 1)       a noncash transaction which is not reported in the body of a statement of cash flows.

      a cash transaction and would be reported in the body of a statement of cash flows.

      a noncash transaction and would be reported in the body of a statement of cash flows.

      only reported if the statement of cash flows is prepared using the direct method.

11. Kanet Company issued common stock for proceeds of $386,000 during 2014. 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 (Points : 1)       $291,000.

      $481,000.

      $306,000.

      $371,000

12. Adama Company reported a net loss of $6,000 for the year ended December 31, 2014. During the year, accounts receivable increased $15,000, merchandise inventory decreased $12,000, accounts payable decreased by $20,000, and depreciation expense of $12,000 was recorded. During 2014, operating activities (Points : 1)       used net cash of $17,000.

      used net cash of $29,000.

      provided net cash of $24,000.

      provided net cash of $21,000.

Question 13. 13. Pare Company reported a net loss of $30,000 for the year ended December 31, 2014. During the year, accounts receivable decreased $15,000, merchandise inventory increased $25,000, accounts payable increased by $30,000, and depreciation expense of $20,000 was recorded. During 2014, operating activities (Points : 1)       used net cash of $10,000.

      used net cash of $25,000.

      provided net cash of $25,000.

      provided net cash of $10,000.

Question 14. 14. Jean's Vegetable Market had the following transactions during 2014:

1. Issued $50,000 of par value common stock for cash.

2. Repaid a 6 year note payable in the amount of $22,000.

3. Acquired land by issuing common stock of par value $50,000.

4. Declared and paid a cash dividend of $7,000.

5. Sold a long-term investment (cost $3,000) for cash of $6,000.

6. Acquired an investment in IBM stock for cash of $10,000.

What is the net cash provided by financing activities? (Points : 1)

      $21,000

      $28,000

      $67,000

      $0

Question 15. 15. Vision Company purchased treasury stock with a cost of $16,000 during 2014. During the year, the company paid dividends of $20,000 and issued bonds payable for proceeds of $860,000. Cash flows from financing activities for 2014 total (Points : 1)       $840,000 net cash inflow.

      $856,000 net cash inflow.

      $860,000 net cash outflow.

      $824,000 net cash inflow.

Question 16. 16. In Jude Company, land decreased $150,000 because of a cash sale for $150,000, the equipment account increased $60,000 as a result of a cash purchase, and Bonds Payable increased $120,000 from issuance for cash at face value. The net cash provided by investing activities is (Points : 1)       $150,000.

      $210,000.

      $90,000.

      $270,000.

Question 17. 17. Accounts receivable arising from sales to customers amounted to $86,000 and $77,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $290,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is (Points : 1)       $290,000.

      $299,000.

      $213,000.

      $280,000.

Question 18. 18. In the Papyrus Corporation, cash receipts from customers were $136,000, cash payments for operating expenses were $102,000, and one-third of the company's $9,300 income taxes were paid during the year. Net cash provided by operating activities is: (Points : 1)       $34,000

      $24,700

      $30,800

      $27,800

Question 19. 19. If a company reports a net loss, it (Points : 1)       may still have a net increase in cash.

      will not be able to pay cash dividends.

      will not be able to get a loan.

      will not be able to make capital expenditures.

Question 20. 20. In Ramon Company, Treasury Stock increased $20,000 from a cash purchase, and Retained Earnings increased $80,000 as a result of net income of $120,000 and cash dividends paid of $40,000. Net cash used by financing activities is: (Points : 1)       $20,000

      $40,000

      $120,000

      $60,000