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Accounting Chapter 12 The Cash Flow Total Assets Ratio
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Accounting Chapter 12 The Cash Flow Total Assets Ratio
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August 23, 2022
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85.
The cash flow on total
assets ratio is calcul
ated by:
86.
A company had net c
ash flows from
op
erations of $341,
000, net income o
f $286,000 and
average total assets o
f $1,850,000. The ca
sh flow on
total assets ratio equals:
87.
A company had net c
ash flows from o
perations of $1
20,000, cash fl
ows from financing
of
$330,000, total cash f
lows of $500
,000
, and average total as
sets of $2,500,000.
The cash
flow on total assets ratio
equals:
88.
A company had aver
age total assets of
$1,660,000, total cash fl
ows of $1,320,
000, cash
flows from operation
s of $205,000, and c
ash flows fro
m financing of
$750,000. The c
ash
flow on total assets ratio
equals:
89.
Preparation of the sta
tement of cash f
lows does not
involve:
90.
The reporting of
net cash provided o
r used by operating
activities that l
ists the major
items of operating cas
h receipts, such a
s receipts from custo
mers, and subtr
acts the
major items of operating c
ash disbursem
ents, such as ca
sh paid for
merchandise, is
referred to as the:
91.
A statement of cash flo
ws explains th
e differences b
etween the beginning
and ending
balances of:
92.
The direct method fo
r the preparation of
the operating
activities section o
f the statement
of cash flows:
93.
The indirect method f
or the preparation o
f the opera
ting activities section o
f the statement
of cash flows:
94.
The direct method of
reporting operating
cash flows:
95.
Of the following, which on
e affects cash duri
ng a
perio
d?
96.
When using the indir
ect me
thod to calculat
e and repo
rt the net cash provi
ded or used by
operating activities, n
et income is adjust
ed for all but which o
f the follo
wing?
97.
When using the indir
ect method to calc
ulate and re
port net cash
provided or used by
operating activities,
which of the fo
llowing is subtracted from n
et income
?
98.
The first line item in t
he o
perating activi
ties section o
f a spreadsheet for a st
atement of
cash flows prepared u
sing the indir
ect method is:
99.
When preparing a stat
ement of cash flo
ws using the indirect
method, each o
f the following
should be classified as
an operating
cash flow except:
100.
A company’s Inventory
balance
at 12/31/17 was $1
88,000 a
nd $200,000 at 12
/31/16. Its
Accounts Payable b
alance at 12/31/
17 was $84,00
0 and $80,000 at 12
/31/16, and its co
st
of goods sold fo
r 2017 was $720,000.
The co
mpany’
s total amount of
cash payments for
merchandise in 20
17 equals:
101.
Use the following info
rmation to calculat
e cash paid f
or
wages and s
alaries:
Salaries expense
$168,000
Salaries payable, January 1
6,400
Salaries payable, December 31
10,600
102.
Use the following info
rmation to calculat
e cash paid f
or income taxes:
Income tax expense
$43,000
Income tax payable, January 1
9,100
Income tax payable, December 31
10,200
103.
Use the following info
rmation about the cu
rrent year’s o
perations of a company
to
calculate the cash p
aid for merchandise
.
Cost of goods sold
$226,000
Merchandise inventory, January 1
54,800
Merchandise inventory, December 31
57,400
Accounts payable, January 1
54,400
Accounts payable, December 31
59,800
104.
Use the following info
rmation about the cu
rrent year’s o
perations of a company
to
calculate the cash p
aid for merchandise
.
Cost of goods sold
$735,000
Merchandise inventory, January 1
84,700
Merchandise inventory, December 31
82,400
Accounts payable, January 1
54,500
Accounts payable, December 31
60,200
105.
When preparing a stat
ement of cash flo
ws using the indirect
method, which o
f the
following is co
rrect?
106.
A company’s incom
e statement showed th
e following:
net incom
e, $134,
000; depreciation
expense, $30,000; an
d gain on sale of plan
t assets, $4,000. An exa
mination of the
company’s current as
sets and current l
iabilities showed the f
ollowing chang
es as a result
of operating activities:
accounts receivable d
ecrease
d $9,
400; merchandi
se inventory
increased $18,000; pre
paid expenses incr
eased $6,200; acco
unts payable incr
eased
$3,400. Calculate the n
et cash prov
ided or used by
operating activitie
s.
107.
A company’s incom
e statement showed th
e following:
net income, $124,000 a
nd
depreciation expens
e, $30,000. An ex
amination o
f t
he company’s current a
ssets and
current liabilities show
ed the following
changes as a result o
f operating activiti
es:
accounts receivable dec
reased $9,400;
merchandise
inventory increa
sed $18,000; and
accounts payable incre
ased $3,400. C
alculate the ne
t ca
sh provi
ded or used by o
perating
activities.
108.
Use the following info
rmation and the indir
ect method to
calculate the net
cash
provided
or used by operating ac
tivities:
Net income
$85,300
Depreciation expense
12,000
Gain on sale of land
7,500
Increase in merchandise inventory
2,050
Increase in accounts payable
6,150
Net income
$85,300
Depreciation expense
Gain on sale of land
Increase in merchandise inventory
Increase in accounts payable
Net cash used by operations
109.
In preparing a company’s
statement of
cash flows for the
most recent year u
sing the
indirect method, the fol
lowing information i
s available:
Net income for the year was
$52,000
Accounts payable decreased by
$18,000
Accounts receivable increased by
$25,000
Inventories increased by
$5,000
Cash dividends paid were
$14,000
Depreciation expense was
$20,000
Net cash provided by
operating activ
ities was:
Net income
Depreciation exp.
Increase in A/R
Increase in Inventories
Decrease in A/P
110.
In preparing a company’s
statement of
cash flows for the
most recent year u
sing the
indirect method, the fol
lowing information i
s available:
Net income for the year was
$52,000
Accounts payable increased by
$18,000
Accounts receivable decreased by
$25,000
Inventories increased by
$5,000
Depreciation expense was
$30,000
Net cash provided by
operating activ
ities was:
Depreciation exp.
Decrease in A/R
Increase in Inventories
Increase in A/P