Topic: Operating Activities – Indirect Method
89.
Innovative Products reported net income of $205,000. Beginning and ending Inventory
balances were $40,000 and $45,000, respectively. Accounts Payable balances at the
beginning and end of the year were $35,000 and $33,000, respectively. Assuming that all
relevant information has been presented, the company would report net operating cash
flows of:
90.
Lense Laboratories’ net income was $250,000. Given the account information below, what
is the net operating cash flows for Lense Laboratories?
Increase in Accounts Receivable
Increase in Salaries Payable
Decrease in Inventory
Depreciation Expense
Increase in Prepaid Insurance
Net Income
Depreciation Expense
91.
Servo Industries’ net income was $300,000. Given the account information below, what is
the net operating cash flows for Servo Industries?
Decrease in Accounts Receivable
Decrease in Salaries Payable
Decrease in Inventory
Depreciation Expense
Increase in Interest Payable
Net Income
Depreciation Expense
92.
Laser World’s income statement reported total revenues, $850,000 and total expenses
(including $40,000 depreciation) of $720,000. The balance sheet reported the following:
Accounts Receivable—beginning balance, $50,000 and ending balance, $60,000; Accounts
Payable—beginning balance, $22,000 and ending balance, $28,000. Therefore, based only
on this information, the net cash flows from operating activities were:
93.
Assuming Net Income for the year is $115,000, what is the net operating cash flows given
the following information:
Increase in Salaries Payable
$15,000
Depreciation Expense
$6,000
Increase in Prepaid Rent
$24,000
Loss on sale of asset
$1,000
Increase in Accounts Payable
$25,000
Increase in Inventory
$50,000
Net Income
operating activities:
Depreciation Expense
Loss on sale of asset
Increase in Salaries Payable
Increase in Prepaid Rent
Increase in Accounts Payable
Increase in Inventory
94.
Which of the following statements is true?
95.
Which of the following is an example of a cash outflow from an investing activity?
96.
Which of the following transactions would generally result in an investing cash inflow?
97.
Which of the following is an example of a cash inflow from a financing activity?
98.
_________ is an investing cash flow and ________ is a financing cash flow, as reported on
the Statement of Cash Flows.
99.
Cash flows from investing activities do
not
include cash flows from:
100.
Cash flows from financing activities include:
101.
Cash flows from financing activities do
not
include:
102.
Cash flows from investing activities do
not
include:
103.
Cash flows from investing activities include:
104.
Shively Mfg. Co. sold land costing $10,000 for $12,000. Shively would report:
11–52
105.
Bad Brad’s BBQ had cash flows for the year as follows ($ in millions):
CASH RECEIVED FROM:
Customers
$1,800
Interest on investments
200
Sale of land
100
Sale of common stock
600
Issuance of debt securities
2,000
CASH PAID FOR:
Interest on debt
$300
Income tax
80
Debt principal reduction
1,500
Purchase of equipment
4,000
Purchase of inventory
1,000
Dividends on common stock
200
Operating expenses
500
Bad Brad’s would report net cash inflows (outflows) from investing activities in the
amount of:
106.
Bad Brad’s BBQ had cash flows for the year as follows ($ in millions):
CASH RECEIVED FROM:
Customers
$1,800
Sale of land
Purchase of equipment
Interest on investments
200
Sale of land
100
Sale of common stock
600
Issuance of debt securities
2,000
CASH PAID FOR:
Interest on debt
$300
Income tax
80
Debt principal reduction
1,500
Purchase of equipment
4,000
Purchase of inventory
1,000
Dividends on common stock
200
Operating expenses
500
Bad Brad’s would report net cash inflows (outflows) from financing activities in the
amount of:
Sale of common stock
Issuance of debt securities
Debt principal reduction
Dividends on common stock
107.
During the year, Next Tec Corp. had the following cash flows: receipt from customers,
$10,000; receipt from the bank for long-term borrowing, $6,000; payment to suppliers,
$5,000; payment of dividends, $1,000, payment to workers, $2,000; and payment for
machinery, $8,000. What amount would be reported for
investing
net cash flows on the
Statement of Cash Flows?
108.
During the year, Next Tec Corp. had the following cash flows: receipt from customers,
$10,000; receipt from the bank for long-term borrowing, $6,000; payment to suppliers,
$5,000; payment of dividends, $1,000, payment to workers, $2,000; and payment for
machinery, $8,000. What amount would be reported for net
financing
cash flows on the
Statement of Cash Flows?
109.
A company had the following cash flows for the year:
(a) Purchased inventory, $60,000
(b) Sold goods to customers, $90,000
(c) Received loan from a local bank, $150,000
(d) Purchased land, $180,000
(e) Purchased treasury stock, $40,000
(f) Paid dividends, $10,000
(g) Sold delivery truck, $30,000
What amount would be reported for net
investing
cash flows on the Statement of Cash
Flows?
110.
A company had the following cash flows for the year:
(a) Purchased land, $60,000
(b) Borrowed from a local bank, $100,000
(c) Paid employee salaries, $50,000
(d) Issued common stock, $75,000
(e) Paid dividends, $20,000
(f) Sold equipment, $40,000
(g) Sold services to customers, $120,000
What amount would be reported for net
investing
cash flows on the Statement of Cash
Flows?
111.
A company had the following cash flows for the year:
(a) Purchased land, $60,000
(b) Borrowed from a local bank, $100,000
(c) Paid employee salaries, $50,000
(d) Issued common stock, $75,000
(e) Paid dividends, $20,000
(f) Sold equipment, $40,000
(g) Sold services to customers, $120,000
What amount would be reported for net
financing
cash flows on the Statement of Cash
Flows?
112.
Financing activities would include cash paid for:
113.
Cash received from issuing common stock would be classified in which section of the
Statement of Cash Flows?
114.
Which of the following would be classified as an investing cash flow?
115.
During 2018, Victory Solutions had the following cash flows: (1) received cash of $5,000
billed to a customer in 2017; (2) earned $20,000 of net income; (3) paid interest of $6,000
on a corporate bond issued; (4) paid dividends of $8,000 to its stockholders; (5) borrowed
$40,000 from a local bank; and (6) purchased its own shares of common stock for $10,000.
What is Victory Solution’s net cash flows from financing activities for 2018?