85.
During 2016, Tommy’s Toys reported the following: long-term debt repayments, $503 million;
interest paid, $143 million; proceeds from exercise of stock options, $27 million, and issue of
common stock in exchange for land costing $10 million. What is the 2016 net cash flow from
financing activities?
86.
Which of the following would not be reported as a financing activities cash flow?
87.
A company’s 2016 income statement reported total sales revenue of $1,200,000; accounts
receivable increased by $25,000 and the unearned sales revenue account decreased $15,000
during 2016. How much cash was collected from customers during 2016?
88.
Bold Company’s 2016 income statement reported total sales revenue of $250,000. During
2016, accounts receivable decreased by $20,000 and accounts payable increased $10,000.
How much cash was collected from customers during 2016?
89.
The financial statements for World Company show the following:
Cost of goods sold, $725,000.
Beginning
Balance
Ending
Balance
Merchandise
Inventory
$45,000
$56,000
Accounts
Receivable
53,000
50,000
Accounts Payable
37,000
42,000
How much cash was paid to suppliers?
= Cost of goods sold
+ Inventory increase
90.
Madison Company had sales of $154,000. Additional information from the balance sheet is
below:
Beginning
Balance
Ending
Balance
Accounts
Receivable
$22,000
$28,000
Accounts Payable
21,000
25,000
How much cash was collected from customers?
Cash collected from customers = $148,000.
= Sales
91.
Amanda Company reported income tax expense of $250,000. Beginning income taxes payable
was $30,000, while ending income taxes payable was $25,000, and accounts payable
decreased $10,000. How much cash was paid for taxes?
92.
Aaron Inc. reported operating expenses during 2017 of $765,000 (including $80,000 of
depreciation expense). Prepaid expenses increased $25,000 while accrued liabilities increased
$43,000. How much cash was paid for operating expenses during 2017?
93.
A company reported an increase in accounts payable and a decrease in inventory during 2016.
Which of the following statements is correct?
94.
A company reported an increase in accounts receivable and an increase in unearned sales
revenues during 2016. Which of the following statements is correct?
95.
A company reported an increase in prepaid rent and an increase in accrued liabilities during
2016. Which of the following statements is correct?
96.
A company reported an increase in accrued sales revenues and a decrease in unearned sales
revenues during 2016. Which of the following statements is correct?
97.
Slipper Company sold a productive asset, a machine, for cash. It originally cost Slipper
$20,000. The accumulated depreciation at the date of disposal was $15,000. A gain on the
disposal of $2,000 was reported. What was the asset’s selling price?
98.
Halbur Company reported the following for its recent year of operation:
From the income statement:
Depreciation expense
$1,000
Loss on sale of equipment
3,000
From the comparative balance sheet:
Beginning balance, equipment
$12,500
Ending balance, equipment
8,000
Beginning balance, accumulated
depreciation
2,000
Ending balance, accumulated
depreciation
2,400
No new equipment was purchased during the year. What was the selling price of the
equipment?
Accumulated depreciation ending balance = $2,400
= Beginning balance
$2,000
+ Depreciation expense
sold
99.
Atkins Corporation has provided the following information for the year ended December 31,
2016:
• The equipment account balance increased by $200,000 from the beginning of the year to
the end of the year.
• The equipment accumulated depreciation account balance increased by $35,000 from the
beginning of the year to the end of the year.
• Equipment costing $50,000 was sold during the year resulting in a $10,000 gain.
• Depreciation expense recorded on the equipment during the year was $65,000.
Which of the following statements is correct with respect to determining cash flow from
investing activities? Assume that the equipment purchase and sale resulted in cash flows.
100.
Atkins Corporation has provided the following information for the year ended December 31,
2016:
• The equipment account balance increased by $200,000 from the beginning of the year to
the end of the year.
• The equipment accumulated depreciation account balance increased by $35,000 from the
beginning of the year to the end of the year.
• Equipment costing $50,000 was sold during the year resulting in a $10,000 gain.
• Depreciation expense recorded on the equipment during the year was $65,000.
Which of the following statements is incorrect with respect to preparation of the statement
of cash flows? Assume that the equipment purchase and sale resulted in cash flows.
101.
Atkins Corporation has provided the following information for the year ended December 31,
2016:
• The equipment account balance increased by $200,000 from the beginning of the year to
the end of the year.
• The equipment accumulated depreciation account balance increased by $35,000 from the
beginning of the year to the end of the year.
• Equipment costing $50,000 was sold during the year resulting in a $10,000 gain.
• Depreciation expense recorded on the equipment during the year was $65,000.
Atkins Corporation has provided the following information for the year ended December 31,
2016:
• The equipment account balance increased $200,000.
• The equipment accumulated depreciation account increased $35,000.
• Equipment costing $50,000 was sold during the year resulting in a $10,000 gain.
• Depreciation expense recorded on the equipment during the year was $65,000.
What was the amount of the investing activities cash inflow from the sale of the equipment?
Assume that the equipment purchase and sale resulted in cash flows.
Essay Questions
102.
For each of the following items, indicate with the letter X whether the transaction would
appear in the operating, investing, or financing activities section of the statement of cash
flows, or is not reported in any one of these three categories. Assume the indirect method is
used for reporting.
Transaction
Activity
Operating
Investing
Financing
None
1.
Revenue minus
expenses from
operations (i.e., net
income)
2.
Collection of cash
dividend.
3.
Payment of a cash
dividend previously
declared.
4.
Purchase of land in
exchange for a long-
term note payable.
5.
Issuance of common
stock for cash.
6.
Cash settlement of a
short-term note
payable (principal
only).
7.
Sale of a productive
asset for cash.
8.
Purchase of a patent.
9.
Sale of a short-term
marketable security for
cash.
10.
Increase in accounts
receivable.
11.
Issuance of a stock
dividend.
