116.
The following information pertains to Alpha Computing at the end of 2018:
Assets
$970,000
Liabilities
$560,000
Net Income
$90,000
Common Stock
$350,000
Alpha Computing’s Retained Earnings account had a zero balance at the beginning of
2018. What amount of dividends did the company pay in 2018?
11–62
117.
The balance sheet of Computer World reports total assets of $350,000 and $450,000 at the
beginning and end of the year, respectively. Sales revenues are $800,000, net income is
$100,000, and net cash flows from operating activities are $150,000. What is Computer
Worlds’ cash return on assets?
118.
The balance sheet of Computer World reports total assets of $350,000 and $450,000 at the
beginning and end of the year, respectively. Sales revenues are $800,000, net income is
$100,000, and net cash flows from operating activities are $150,000. What is Computer
World’s cash flow to sales?
119.
The balance sheet of Computer World reports total assets of $350,000 and $450,000 at the
beginning and end of the year, respectively. Sales revenues are $800,000, net income is
$100,000, and net cash flows from operating activities are $150,000. What is Computer
World’s asset turnover?
120.
The balance sheet of Sound Designs reports total assets of $750,000 and $800,000 at the
beginning and end of the year, respectively. Sales revenues are $1.5 million ($1.2 million in
the previous year), net income is $150,000, and net cash flows from operating activities
are $175,000. What is Sound Designs’ cash return on assets?
121.
The balance sheet of Sound Designs reports total assets of $750,000 and $800,000 at the
beginning and end of the year, respectively. Sales revenues are $1.5 million ($1.2 million in
the previous year), net income is $150,000, and net cash flows from operating activities
are $175,000. What is Sound Designs’ cash flow to sales?
11–67
122.
The balance sheet of Sound Designs reports total assets of $750,000 and $800,000 at the
beginning and end of the year, respectively. Sales revenues are $1.5 million ($1.2 million in
the previous year), net income is $150,000, and net cash flows from operating activities
are $175,000. What is Sound Designs’ asset turnover?
123.
The balance sheet of Tech Track reports total assets of $400,000 and $500,000 at the
beginning and end of the year, respectively. Sales revenues are $1.1 million ($0.8 million in
the previous year), net income is $40,000, and net cash flows from operating activities are
$50,000. How does Tech Track’s cash return on assets compare to the industry average of
10%?
11–69
124.
The balance sheet of Tech Track reports total assets of $400,000 and $500,000 at the
beginning and end of the year, respectively. Sales revenues are $1.1 million ($0.8 million in
the previous year), net income is $40,000, and net cash flows from operating activities are
$50,000. How does Tech Track’s cash flow to sales ratio compare to the industry average
of 5%?
125.
The balance sheet of Tech Track reports total assets of $400,000 and $500,000 at the
beginning and end of the year, respectively. Sales revenues are $1,080,000($800,000 in the
previous year), net income is $40,000, and net cash flows from operating activities are
$50,000. How does Tech Track’s asset turnover compare to the industry average of 2.4
times?
126.
We can separate cash return on assets into:
127.
Some cash flow ratios are derived by substituting net cash flows from operating activities
in place of:
128.
The balance sheet of Technology World reports total assets of $800,000 and $900,000 at
the beginning and end of the year, respectively. The cash return on assets for the year is
20%. What is Technology World’s net operating cash flows for the year?
129.
The balance sheet of Orion Medical Equipment reports total assets of $450,000 and
$550,000 at the beginning and end of the year, respectively. The cash return on assets for
the year is 10%. What is Orion’s net operating cash flows for the year?
130.
We calculate cash return on assets as
131.
Which of the following statements is
not
true relating to cash flow analysis?
run.
132.
The balance sheet of Storage Solutions reports total assets of $300,000 and $350,000 at
the beginning and end of the year, respectively. The cash return on assets for the year is
10%. What is Storage Solutions’ net cash flows from operating activities for the year?
133.
In 2018, Hope Company incurred sales on account of $100,000. The company also has the
following information:
December 31,
2018
December 31,
2017
Accounts
Receivable
$20,000
$50,000
Accounts
Payable
$40,000
$65,000
What is the amount of cash received from customers for Hope Company in 2018?
134.
Wireless Technologies reports sales of $50 million. Accounts receivable at the beginning
and end of the year are $5 million and $7 million, respectively. What is the amount of cash
received from customers?
135.
At the beginning of the period, Utilities Payable equals $500. At the end of the period,
Utilities Payable equals $700. If Utilities Expense for the period equals $1,500, what was
the cash paid for utilities for the period?
136.
At the beginning of the period, Accounts Receivable equals $1,700. At the end of the
period, Accounts Receivable equals $2,200. If Service Revenue for the period equals
$15,400, what was the cash received from customers for the period?
137.
Wireless Technologies reports cost of goods sold of $40 million. Inventory at the beginning
and end of the year are $4 million and $3 million, respectively. Accounts payable at the
beginning and end of the year are $3 million and $6 million, respectively. What is the
amount of cash paid to suppliers?
138.
Wireless Technologies reports operating expenses of $2 million. Operating expenses
include rent expense. Prepaid rent at the beginning and end of the year are $20,000 and
$70,000, respectively. All other operating expenses were paid in cash as incurred. What is
the amount of cash paid for operating expenses?
139.
Wireless Technologies reports income tax expense of $800,000. Income tax payable at the
beginning and end of the year are $50,000 and $70,000, respectively. What is the amount
of cash paid for income taxes?