49) Last year Burch Corporation’s cash account decreased by $6,000. Net cash provided by (used
in) investing activities was $13,000. Net cash provided by (used in) financing activities was
$(30,000). On the statement of cash flows, the net cash provided by (used in) operating activities
was:
A) $(23,000)
B) $(17,000)
C) $(6,000)
D) $11,000
50) Klicker Corporation’s most recent balance sheet appears below:
Comparative Balance Sheet
Ending
Balance
Beginning
Balance
Assets:
Current assets:
Cash and cash equivalents
$
27
$
30
Accounts receivable
37
31
Inventory
61
58
Total current assets
125
119
Property, plant, and equipment
593
480
Less accumulated depreciation
223
205
Net property, plant, and equipment
370
275
Total assets
$
495
$
394
Liabilities and stockholders’ equity:
Current liabilities:
Accounts payable
$
39
$
38
Accrued liabilities
15
18
Income taxes payable
28
28
Total current liabilities
82
84
Bonds payable
107
120
Total liabilities
189
204
Stockholders’ equity:
Common stock
34
30
Retained earnings
272
160
Total stockholders’ equity
306
190
Total liabilities and stockholders’ equity
$
495
$
394
The company’s net income for the year was $152 and it did not issue any bonds or repurchase any
of its common stock during the year. Cash dividends were $40. The net cash provided by (used in)
financing activities for the year was:
A) ($49)
B) ($40)
C) $4
D) ($13)
51) Excerpts from Aultman Corporation’s comparative balance sheet appear below:
Ending Balance
Beginning
Balance
Cash and cash equivalents
$
62,000
$
29,000
Inventory
$
371,000
$
345,000
Accounts payable
$
71,000
$
73,000
Which of the following is the correct treatment within the operating activities section of the
statement of cash flows using the indirect method?
A) The change in Inventory is added to net income; The change in Accounts Payable is added to
net income
B) The change in Inventory is added to net income; The change in Accounts Payable is subtracted
from net income
C) The change in Inventory is subtracted from net income; The change in Accounts Payable is
added to net income
D) The change in Inventory is subtracted from net income; The change in Accounts Payable is
subtracted from net income
Ending Balance
Inventory
$
371,000
Accounts payable
$
-2,000
25
52) Marbry Corporation’s balance sheet and income statement appear below:
Comparative Balance Sheet
Ending
Balance
Beginning
Balance
Assets:
Current assets:
Cash and cash equivalents
$
44
$
37
Accounts receivable
57
49
Inventory
48
42
Total current assets
149
128
Property, plant, and equipment
441
360
Less accumulated depreciation
281
248
Net property, plant, and equipment
160
112
Total assets
$
309
$
240
Liabilities and stockholders’ equity:
Current liabilities:
Accounts payable
$
35
$
43
Accrued liabilities
18
16
Income taxes payable
37
40
Total current liabilities
90
99
Bonds payable
15
20
Total liabilities
105
119
Stockholders’ equity:
Common stock
34
30
Retained earnings
170
91
Total stockholders’ equity
204
121
Total liabilities and stockholders’ equity
$
309
$
240
Income Statement
Sales
$807
Cost of goods sold
531
Gross margin
276
Selling and administrative expense
143
Net operating income
133
Gain on sale of plant and equipment
10
Income before taxes
143
Income taxes
43
Net income
$100
Cash dividends were $21. The company did not issue any bonds or repurchase any of its own
common stock during the year. The net cash provided by (used in) financing activities for the year
was:
A) $4
B) ($22)
C) ($5)
D) ($21)
Financing activities:
)
)
Net cash provided by (used in) financing activities
)
53) The following transactions occurred last year at Jolly Corporation:
Issuance of shares of the company’s own common stock
$120,000
Dividends paid to the company’s own shareholders
$1,000
Sale of long-term investment
$7,000
Interest paid to lenders
$13,000
Retirement of the company’s own bonds payable
$60,000
Proceeds from sale of the company’s used equipment
$8,000
Purchase of property
$170,000
Based solely on the above information, the net cash provided by (used in) financing activities for
the year on the statement of cash flows would be:
A) $179,000
B) $59,000
C) $(109,000)
D) $46,000
Repaying principal on bonds payable
)
Issuance of common stock
Paying a dividend
)
Net cash provided by financing activities
54) Tani Corporation’s most recent balance sheet appears below:
Comparative Balance Sheet
Ending
Balance
Beginning
Balance
Assets:
Current assets:
Cash and cash equivalents
$
52
$
40
Accounts receivable
37
32
Inventory
57
63
Total current assets
146
135
Property, plant, and equipment
515
470
Less accumulated depreciation
312
270
Net property, plant, and equipment
203
200
Total assets
$
349
$
335
Liabilities and stockholders’ equity:
Current liabilities:
Accounts payable
$
54
$
46
Total current liabilities
54
46
Bonds payable
60
70
Total liabilities
114
116
Stockholders’ equity:
Common stock
52
50
Retained earnings
183
169
Total stockholders’ equity
235
219
Total liabilities and stockholders’ equity
$
349
$
335
The company’s net income for the year was $18 and it did not sell or retire any property, plant, and
equipment during the year. Cash dividends were $4. The net cash provided by (used in) investing
activities for the year was:
A) ($45)
B) $45
C) ($3)
D) $3
55) Sonier Corporation’s most recent balance sheet appears below:
Comparative Balance Sheet
Ending
Balance
Beginning
Balance
Assets:
Cash and cash equivalents
$
26
$
27
Accounts receivable
45
49
Inventory
40
43
Property, plant, and equipment
474
380
Less accumulated depreciation
269
244
Total assets
$
316
$
255
Liabilities and stockholders’ equity:
Accounts payable
$
42
$
35
Bonds payable
245
270
Common stock
71
70
Retained earnings
(42
)
(120
)
Total liabilities and stockholders’ equity
$
316
$
255
The net income for the year was $97. Cash dividends were $19. The company did not issue any
bonds or repurchase any of its common stock during the year. The net cash provided by (used in)
financing activities for the year was:
A) ($43)
B) ($19)
C) ($25)
D) $1
56) Kaeser Corporation’s most recent balance sheet appears below:
Comparative Balance Sheet
Ending
Balance
Beginning
Balance
Assets:
Current assets:
Cash and cash equivalents
$
44
$
36
Accounts receivable
54
60
Inventory
32
37
Total current assets
130
133
Property, plant, and equipment
527
460
Less accumulated depreciation
339
289
Net property, plant, and equipment
188
171
Total assets
$
318
$
304
Liabilities and stockholders’ equity:
Current liabilities:
Accounts payable
$
46
$
41
Accrued liabilities
20
17
Income taxes payable
26
29
Total current liabilities
92
87
Bonds payable
145
180
Total liabilities
237
267
Stockholders’ equity:
Common stock
31
30
Retained earnings
50
7
Total stockholders’ equity
81
37
Total liabilities and stockholders’ equity
$
318
$
304
The company’s net income for the year was $52 and it did not sell or retire any property, plant, and
equipment during the year. Cash dividends were $9. The net cash provided by (used in) investing
activities for the year was:
A) $17
B) $67
C) ($17)
D) ($67)
57) Excerpts from Neuwirth Corporation’s comparative balance sheet appear below:
Ending
Balance
Beginning
Balance
Cash and cash equivalents
$
37,000
$
27,000
Accounts receivable
$
24,000
$
28,000
Inventory
$
65,000
$
68,000
Which of the following is the correct treatment within the operating activities section of the
statement of cash flows using the indirect method?
A) The change in Accounts Receivable is added to net income; The change in Inventory is added
to net income
B) The change in Accounts Receivable is added to net income; The change in Inventory is
subtracted from net income
C) The change in Accounts Receivable is subtracted from net income; The change in Inventory is
subtracted from net income
D) The change in Accounts Receivable is subtracted from net income; The change in Inventory is
added to net income
Ending
Balance
Beginning
Balance
Accounts receivable
$
24,000
$
28,000
$
Inventory
$
65,000
$
68,000
$
58) The Warrel Corporation reported the following data for last year:
Increase in Cash and cash equivalents
$
22,000
Net cash provided by (used in) operating activities
$
(18,000
)
Net cash provided by (used in) investing activities
$
6,000
Based solely on this information, the net cash provided by (used in) financing activities on the
statement of cash flows would be:
A) $12,000
B) $34,000
C) $(12,000)
D) $(18,000)
59) Excerpts from Deblois Corporation’s comparative balance sheet appear below:
Ending
Balance
Beginning
Balance
Cash and cash equivalents
$
22,000
$
28,000
Accounts payable
$
18,000
$
17,000
Accrued liabilities
$
34,000
$
37,000
Which of the following is the correct treatment within the operating activities section of the
statement of cash flows using the indirect method?
A) The change in Accounts Payable is added to net income; The change in Accrued Liabilities is
subtracted from net income
B) The change in Accounts Payable is added to net income; The change in Accrued Liabilities is
added to net income
C) The change in Accounts Payable is subtracted from net income; The change in Accrued
Liabilities is added to net income
D) The change in Accounts Payable is subtracted from net income; The change in Accrued
Liabilities is subtracted from net income
Ending
Balance
Beginning
Balance
Accounts payable
$
18,000
$
17,000
$
+1,000
Accrued liabilities
$
34,000
$
37,000
$
60) Kaze Corporation’s cash and cash equivalents consist of cash and marketable securities. Last
year the company’s cash account increased by $25,000 and its marketable securities account
decreased by $15,000. Net cash provided by (used in) operating activities was $38,000. Net cash
provided by (used in) investing activities was $9,000. Based on this information, the net cash
provided by (used in) financing activities on the statement of cash flows was:
A) $(37,000).
B) $37,000.
C) $(47,000).
D) $47,000.
38
61) Autry Corporation’s balance sheet and income statement appear below:
Comparative Balance Sheet
Ending
Balance
Beginning
Balance
Assets:
Current assets:
Cash and cash equivalents
$
33
$
26
Accounts receivable
67
68
Inventory
54
65
Total current assets
154
159
Property, plant, and equipment
673
520
Less accumulated depreciation
315
293
Net property, plant, and equipment
358
227
Total assets
$
512
$
386
Liabilities and stockholders’ equity:
Current liabilities:
Accounts payable
$
35
$
34
Accrued liabilities
19
18
Income taxes payable
29
29
Total current liabilities
83
81
Bonds payable
36
50
Total liabilities
119
131
Stockholders’ equity:
Common stock
33
30
Retained earnings
360
225
Total stockholders’ equity
393
255
Total liabilities and stockholders’ equity
$
512
$
386
Income Statement
Sales
$1,206
Cost of goods sold
795
Gross margin
411
Selling and administrative expense
178
Net operating income
233
Gain on sale of plant and equipment
17
Income before taxes
250
Income taxes
75
Net income
$175
Cash dividends were $40. The company sold equipment for $19 that was originally purchased for
$6 and that had accumulated depreciation of $4. The net cash provided by (used in) investing
activities for the year was:
A) $19
B) $140
C) ($159)
D) ($140)
Investing activities:
Proceeds from sale of equipment
Increase in property, plant, and equipment ($673 – $520 + $6)
)
Net cash used in investing activities
)
62) Furis Corporation’s cash and cash equivalents consist of cash and marketable securities. Last
year the company’s cash account decreased by $12,000 and its marketable securities account
increased by $19,000. Net cash provided by (used in) operating activities was $18,000. Net cash
provided by (used in) financing activities was $(12,000). Based on this information, the net cash
provided by (used in) investing activities on the statement of cash flows was:
A) $(12,000)
B) $1,000
C) $(6,000)
D) $6,000