78) McCorey Corporation recorded the following events last year:
Repurchase by the company of its own common stock
$60,000
Sale of long-term investment
$55,000
Interest paid to lenders
$15,000
Dividends paid to the company’s shareholders
$70,000
Collection by McCorey of a loan made to another company
$75,000
Payment of taxes to governmental bodies
$50,000
On the statement of cash flows, some of these events are classified as operating activities, some are
classified as investing activities, and some are classified as financing activities.
Based solely on the information above, the net cash provided by (used in) financing activities on
the statement of cash flows would be:
A) $(70,000)
B) $70,000
C) $(130,000)
D) $130,000
Financing activities:
Purchase own shares of common stock
)
Paying a dividend
)
Net cash provided by (used in) financing activities
)
79) McCorey Corporation recorded the following events last year:
Repurchase by the company of its own common stock
$60,000
Sale of long-term investment
$55,000
Interest paid to lenders
$15,000
Dividends paid to the company’s shareholders
$70,000
Collection by McCorey of a loan made to another company
$75,000
Payment of taxes to governmental bodies
$50,000
On the statement of cash flows, some of these events are classified as operating activities, some are
classified as investing activities, and some are classified as financing activities.
Based solely on the information above, the net cash provided by (used in) investing activities on
the statement of cash flows would be:
A) $110,000
B) $55,000
C) $150,000
D) $130,000
Investing activities:
Sale of long-term investment
Net cash provided by (used in) investing activities
80) Randal Corporation recorded the following activity for the year just ended:
Proceeds from sale of property
$300,000
Cash received from customers
$120,000
Issuance of common stock
$180,000
Issuance of bonds payable
$500,000
Dividends paid to stockholders
$130,000
Purchase of equipment
$400,000
The net cash provided by (used in) financing activities for the year was:
A) $100,000
B) $550,000
C) $180,000
D) $680,000
Financing activities:
Issuance of bonds payable
Issuance of common stock
Paying a dividend
)
Net cash provided by (used in) financing activities
81) Randal Corporation recorded the following activity for the year just ended:
Proceeds from sale of property
$300,000
Cash received from customers
$120,000
Issuance of common stock
$180,000
Issuance of bonds payable
$500,000
Dividends paid to stockholders
$130,000
Purchase of equipment
$400,000
The net cash provided by (used in) investing activities for the year was:
A) $100,000
B) $(100,000)
C) $(400,000)
D) $400,000
Investing activities:
Purchase of property, plant, and equipment
)
Sale of property, plant, and equipment
Net cash provided by (used in) investing activities
)
82) Spackel Corporation recorded the following events last year:
Issuance of shares of the company’s own common stock
$380,000
Purchase of long-term investment
$40,000
Dividends paid to the company’s own shareholders
$18,000
Cash paid to suppliers for inventory purchases
$12,000
Repayment of principal on the company’s own bonds
$370,000
Interest paid to lenders
$6,000
Collection by Spackel of a loan made to another company
$110,000
Purchase of equipment
$350,000
Based solely on the information above, the net cash provided by (used in) financing activities on
the statement of cash flows would be:
A) $(8,000)
B) $(14,000)
C) $104,000
D) $1,286,000
Repayment of principal on bonds payable
)
Issuance of common stock
Paying a dividend
)
Net cash provided by (used in) financing activities
)
83) Spackel Corporation recorded the following events last year:
Issuance of shares of the company’s own common stock
$380,000
Purchase of long-term investment
$40,000
Dividends paid to the company’s own shareholders
$18,000
Cash paid to suppliers for inventory purchases
$12,000
Repayment of principal on the company’s own bonds
$370,000
Interest paid to lenders
$6,000
Collection by Spackel of a loan made to another company
$110,000
Purchase of equipment
$350,000
On the statement of cash flows, some of these events are classified as operating activities, some are
classified as investing activities, and some are classified as financing activities.
Based solely on the information above, the net cash provided by (used in) investing activities on
the statement of cash flows would be:
A) $(280,000)
B) $(390,000)
C) $(760,000)
D) $(1,286,000)
Purchase of long-term investments
)
Collection of loan made to another company
Purchase of equipment
)
Net cash provided by (used in) investing activities
)
84) The net cash provided by (used in) operating activities for the year was:
A) $51
B) $69
C) $9
D) $86
85) The net cash provided by (used in) investing activities for the year was:
A) $74
B) $(74)
C) $(72)
D) $72
86) The net cash provided by (used in) financing activities for the year was:
A) $10
B) $5
C) $(12)
D) $17
87) Hirshberg Corporation’s comparative balance sheet appears below:
Comparative Balance Sheet
Ending
Balance
Beginning
Balance
Assets:
Current assets:
Cash and cash equivalents
$
42,000
31,000
Accounts receivable
22,000
18,000
Inventory
66,000
70,000
Total current assets
130,000
119,000
Property, plant, and equipment
401,000
377,000
Less accumulated depreciation
207,000
177,000
Net property, plant, and equipment
194,000
200,000
Total assets
$
324,000
319,000
Liabilities and stockholders’ equity:
Current liabilities:
Accounts payable
$
15,000
17,000
Accrued liabilities
45,000
38,000
Income taxes payable
53,000
51,000
Total current liabilities
113,000
106,000
Bonds payable
83,000
91,000
Total liabilities
196,000
197,000
Stockholders’ equity:
Common stock
27,000
28,000
Retained earnings
101,000
94,000
Total stockholders’ equity
128,000
122,000
Total liabilities and stockholders’ equity
$
324,000
319,000
The company’s net income for the year was $11,000 and its cash dividends were $4,000. It did not
sell or retire any property, plant, and equipment during the year.
The company’s net cash provided by (used in) operating activities is:
A) $48,000
B) $18,000
C) $40,000
D) $52,000
88) Hirshberg Corporation’s comparative balance sheet appears below:
Comparative Balance Sheet
Ending
Balance
Beginning
Balance
Assets:
Current assets:
Cash and cash equivalents
$
42,000
31,000
Accounts receivable
22,000
18,000
Inventory
66,000
70,000
Total current assets
130,000
119,000
Property, plant, and equipment
401,000
377,000
Less accumulated depreciation
207,000
177,000
Net property, plant, and equipment
194,000
200,000
Total assets
$
324,000
319,000
Liabilities and stockholders’ equity:
Current liabilities:
Accounts payable
$
15,000
17,000
Accrued liabilities
45,000
38,000
Income taxes payable
53,000
51,000
Total current liabilities
113,000
106,000
Bonds payable
83,000
91,000
Total liabilities
196,000
197,000
Stockholders’ equity:
Common stock
27,000
28,000
Retained earnings
101,000
94,000
Total stockholders’ equity
128,000
122,000
Total liabilities and stockholders’ equity
$
324,000
319,000
The company’s net income for the year was $11,000 and its cash dividends were
$4,000. It did not sell or retire any property, plant, and equipment during the year
The company’s net cash provided by (used in) investing activities is:
A) $(6,000)
B) $54,000
C) $(24,000)
D) $44,000
Walmouth Corporation’s comparative balance sheet and income statement for last year appear
below:
Comparative Balance Sheet
Ending
Balance
Beginning
Balance
Cash and cash equivalents
40,000
$
32,000
Accounts receivable
89,000
79,000
Inventory
48,000
55,000
Prepaid expenses
8,000
11,000
Long-term investments
250,000
210,000
Property, plant, and equipment
550,000
550,000
Less accumulated depreciation
264,000
239,000
Total assets
721,000
$
698,000
Accounts payable
58,000
$
46,000
Accrued liabilities
15,000
19,000
Income taxes payable
55,000
41,000
Bonds payable
100,000
160,000
Common stock
150,000
140,000
Retained earnings
343,000
292,000
Total liabilities and stockholders’ equity
721,000
$
698,000
Income Statement
Sales
$870,000
Cost of goods sold
450,000
Gross margin
420,000
Selling and administrative expense
270,000
Net operating income
150,000
Income taxes
45,000
Net income
$105,000
The company declared and paid a cash dividend of $54,000 during the year. It did not purchase or
dispose of any property, plant, and equipment. It did not issue any bonds or repurchase any of its
own common stock. The following questions pertain to the company’s statement of cash flows.
89) The net cash provided by (used in) operating activities last year was:
A) $105,000
B) $58,000
C) $130,000
D) $152,000
90) The net cash provided by (used in) investing activities last year was:
A) $30,000
B) $(30,000)
C) $(40,000)
D) $40,000
91) The net cash provided by (used in) financing activities last year was:
A) $(104,000)
B) $104,000
C) $(60,000)
D) $60,000
Stone Retail Corporation’s most recent comparative Balance Sheet is as follows:
Comparative Balance Sheet
Ending
Balance
Beginning
Balance
Assets:
Cash and cash equivalents
$
51,000
64,000
Accounts receivable
83,000
41,000
Inventory
96,000
87,000
Property, plant, and equipment
120,000
120,000
Less accumulated depreciation
65,000
50,000
Total assets
$
285,000
262,000
Liabilities and stockholders’ equity:
Accounts payable
$
12,000
38,000
Income taxes payable
1,000
3,000
Bonds payable
30,000
5,000
Common stock
100,000
80,000
Retained earnings
142,000
136,000
Total liabilities and stockholders’ equity
$
285,000
262,000
Stone’s net income was $46,000. No equipment was sold or purchased. Cash dividends of $40,000
were declared and paid. Stone uses the indirect method to prepare its statement of cash flows.
92) What is Stone’s net cash provided by (used in) operating activities?
A) $(18,000)
B) $(33,000)
C) $69,000
D) $84,000