Description
•
Use the following to answer questions 1-4:
The financial statements of Wines, Inc., provide the
following information for the current year:
Dec.31 Jan.1
Accounts
receivable………………………………………………. $210,000 $180,000
Inventory…………………………………………………………….. 200,000 190,000
Prepaid
expenses…………………………………………………… 14,000 10,000
Accounts payable (for
merchandise)………………………….. 176,000 161,000
Accrued expenses payable………………………………………. 13,000 19,000
Net
sales……………………………………………………………… 2,900,000
Cost of goods
sold…………………………………………………. 1,500,000
Operating expenses (including depreciation of $40,000)….. 300,000
1. Refer to the above data. Compute the amount of cash received from
customers during the current year.
Answer
• Question
2
2.144 out of 2.144 points
2.
Refer to the above data. Compute
the amount of Wine’s cash payments for purchases of merchandise during the
current year.
Answer
• Question
3
2.144 out of 2.144 points
3.
Refer to the above data. Compute
the amount of Wine’s cash payments for operating expenses.
Answer
• Question
4
2.144 out of 2.144 points
4.
Refer to the above data. Wine’s
net cash flow from operating activities for the current year is:
Answer
• Question
5
2.144 out of 2.144 points
Use the following to answer
questions 5-8:
An analysis of Elmont Corporation’s Investment in Marketable
Securities account during 2005 disclosed the following:
Debit
entries………………………………………………………………. $150,000
Credit entries……………………………………………………………… 230,000
Elmont’s 2005 income statement included a $30,000 gain on
sale of marketable securities and $20,000 dividend income from marketable
securities. All payments and proceeds
relating to marketable securities transactions were in cash.
5. Refer to the above data. The amount of cash paid by Elmont Corporation
in 2005 for the purchase of marketable securities was:
Answer
• Question
6
2.144 out of 2.144 points
6.
Refer to the above data. The cash
proceeds received by Elmont Corporation in 2005 for the sale of marketable
securities was:
Answer
• Question
7
2.144 out of 2.144 points
7.
Refer to the above data. How
should the transactions involving marketable securities be classified in
Elmont’s statement of cash flows for 2005?
Answer
• Question
8
0 out of 2.144 points
8.
Refer to the above data. Based
solely on the above information, Elmont’s net cash flow from investing
activities for 2005 is:
Answer
• Question
9
2.144 out of 2.144 points
Use the following to answer
questions 9-12:
An analysis of changes in selected balance sheet accounts of
Gotham Corporation shows the following for the current year:
Plant and Equipment accounts:
Debit entries to
asset accounts…………………………………….. $210,000
Credit entries to
asset accounts……………………………………. 320,000
Debit entries to
accumulated depreciation accounts
(resulting from
sale of plant assets)…………………………….. 30,000
Credit entries to
accumulated depreciation accounts
(representing
depreciation for the current year)…………….. 80,000
Gotham’s income statement for the current year includes a
$4,000 gain on disposal of plant assets. All payments and proceeds relating to
purchase or sale of plant assets were in cash.
9. Refer to the above data. The amount of cash paid by Gotham to acquire
plant assets during the current year was:
Answer
• Question
10
2.144 out of 2.144 points
10. Refer to the above data. Total cash proceeds received by Gotham from
sales of plant assets during the current year amounted to:
Answer
• Question
11
2.144 out of 2.144 points
11.
Refer to the above data. How
should purchases, sales, and depreciation of plant assets be classified in
Gotham’s statement of cash flows for the current year? (Assume the direct method is used by Gotham.)
Answer
• Question
12
2.144 out of 2.144 points
12.
Refer to the above data. Based
solely on the data provided above, Gotham’s net cash flow from investing
activities for the current year is:
Answer
• Question
13
0 out of 2.144 points
Use the following to answer
questions 13-15:
During 2006, the cash flows related to Dodge Data, Inc.’s
lending and borrowing activities are summarized as follows:
Cash lent to
borrowers…………………………………………………. $85,000
Payment to retire bonds payable…………………………………….. 175,000
Proceeds from borrowing at bank (note
payable)……………….. 105,000
Interest received from
borrowers……………………………………. 15,000
Interest payments made on bonds
payable………………………… 20,000
13. Refer to the above data. On the basis of the above information alone,
what is Dodge Data’s net cash flow from financing activities?
Answer
• Question
14
2.144 out of 2.144 points
14.
Refer to the above data. If Dodge
Data’s income statement for 2006 reports interest expense of $12,000, then:
Answer
• Question
15
2.144 out of 2.144 points
15.
Refer to the above data. If
interest receivable was $3,000 at December 31, 2005, and is $5,000 at the end
of 2006, interest revenue reported in Dodge Data’s income statement for 2006
must have been:
Answer
• Question
16
2.144 out of 2.144 points
16.
Acme Company uses the indirect method to prepare its statement of cash
flows. The following information has been gathered for the current period:
Gain on sale of land…………………………………………………….. $45,000
Net
income……………………………………………………………….. 162,000
Depreciation
expense…………………………………………………… 74,000
Cash received from sale of
land……………………………………… 160,000
Decrease in
inventory………………………………………………….. 10,000
Increase in accounts
receivable……………………………………… 5,000
Increase in accounts payable…………………………………………. 11,000
On the
basis of the above information only, Acme Company’s statement of cash flows
shows net cash flow from operating activities to be:
Answer
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