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Freeport Corporation's income statement for last year appears below:  Freeport Corporation's income statement for last year appears below:    The beginning and ending balances for last year are available for the following selected accounts (the company did not dispose of any property,plant,and equipment during the year):   \begin{array}{lrr} &\text { Ending } & \text { Beginning } \\ &\text { Balance } & \text { Balance } \\ \text {Accounts receivable }&\$ 32,000 & \$ 40,000 \\ \text {Inventory. }&\$ 60,000 & \$ 50,000 \\ \text { Prepaid expenses}&\$ 12,000 & \$ 8,000 \\ \text {Accumulated depreciation }&\$ 40,000 & \$ 30,000 \\ \text { Accounts payable}&\$ 30,000 & \$ 45,000 \\ \text { Accrued liabilities.}&\$ 16,000 & \$ 10,000 \\ \text {Income taxes pavable }&\$ 2,000 & \$ 5,000 \end{array}  Required: Using the direct method,prepare in good form the operating activities section of the statement of cash flows. The beginning and ending balances for last year are available for the following selected accounts (the company did not dispose of any property,plant,and equipment during the year):  Ending  Beginning  Balance  Balance Accounts receivable $32,000$40,000Inventory. $60,000$50,000 Prepaid expenses$12,000$8,000Accumulated depreciation $40,000$30,000 Accounts payable$30,000$45,000 Accrued liabilities.$16,000$10,000Income taxes pavable $2,000$5,000\begin{array}{lrr}&\text { Ending } & \text { Beginning } \\&\text { Balance } & \text { Balance } \\\text {Accounts receivable }&\$ 32,000 & \$ 40,000 \\\text {Inventory. }&\$ 60,000 & \$ 50,000 \\\text { Prepaid expenses}&\$ 12,000 & \$ 8,000 \\\text {Accumulated depreciation }&\$ 40,000 & \$ 30,000 \\\text { Accounts payable}&\$ 30,000 & \$ 45,000 \\\text { Accrued liabilities.}&\$ 16,000 & \$ 10,000 \\\text {Income taxes pavable }&\$ 2,000 & \$ 5,000\end{array} Required: Using the direct method,prepare in good form the operating activities section of the statement of cash flows.

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Under the direct method of determining the net cash provided by (used in)operating activities on the statement of cash flows,an increase in accounts receivable would be added to sales revenue to convert revenue to a cash basis.

A) True
B) False

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Sales reported on the income statement totaled $750,000.The beginning balance in accounts receivable was $70,000.The ending balance in accounts receivable was $80,000.Under the direct method of determining the net cash provided by (used in) operating activities on the statement of cash flows,sales adjusted to a cash basis are:


A) $760,000
B) $740,000
C) $680,000
D) $830,000

E) A) and B)
F) All of the above

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Last year Cumberland Corporation reported a cost of goods sold of $120,000.Inventories increased by $35,000 during the year,and accounts payable increased by $20,000.The company uses the direct method to determine the net cash provided by (used in) operating activities on the statement of cash flows.The cost of goods sold adjusted to a cash basis would be:


A) $135,000
B) $100,000
C) $155,000
D) $105,000

E) A) and D)
F) A) and B)

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Carson Corporation's comparative balance sheet and income statement for last year appear below:  Comparative Balance Sheet \text { Comparative Balance Sheet }  Ending  Beginning  Balance  Balance Cash. $20,000$15,000Accounts receivable 27,00025,000 Inventory.32,00035,000Prepaid expenses 8,0005,000Long-term investments 36,00038,000 Property, plant and equipment108,00092,000 Less accumulated depreciation.49,00030,000Total assets. $182,000$180,000Accounts payable $30,000$38,000Income taxes payable 17,00035,000Bonds payable 40,00032,000Common stock 45,00040,000Retained earnings 50,00035,000Total liabilities and stockholders’ equity $182,000$180,000\begin{array}{lrr}&\text { Ending } & \text { Beginning } \\&\text { Balance } & \text { Balance } \\\text {Cash. }&\$ 20,000 & \$ 15,000 \\\text {Accounts receivable }&27,000 & 25,000 \\\text { Inventory.}&32,000 & 35,000 \\\text {Prepaid expenses }&8,000 & 5,000 \\\text {Long-term investments }&36,000 & 38,000 \\\text { Property, plant and equipment}&108,000 & 92,000 \\\text { Less accumulated depreciation.}&49,000&30,000\\\text {Total assets. }&\$182,000&\$180,000\\\\\text {Accounts payable }&\$ 30,000 & \$ 38,000 \\\text {Income taxes payable }&17,000 & 35,000 \\\text {Bonds payable }&40,000 & 32,000 \\\text {Common stock }&45,000 & 40,000 \\\text {Retained earnings }&50,000 & 35,000 \\\text {Total liabilities and stockholders' equity }&\$ 182,000 & \$ 180,000\end{array}  Carson Corporation's comparative balance sheet and income statement for last year appear below:   \text { Comparative Balance Sheet }   \begin{array}{lrr} &\text { Ending } & \text { Beginning } \\ &\text { Balance } & \text { Balance } \\ \text {Cash. }&\$ 20,000 & \$ 15,000 \\ \text {Accounts receivable }&27,000 & 25,000 \\ \text { Inventory.}&32,000 & 35,000 \\ \text {Prepaid expenses }&8,000 & 5,000 \\ \text {Long-term investments }&36,000 & 38,000 \\ \text { Property, plant and equipment}&108,000 & 92,000 \\ \text { Less accumulated depreciation.}&49,000&30,000\\ \text {Total assets. }&\$182,000&\$180,000\\\\ \text {Accounts payable }&\$ 30,000 & \$ 38,000 \\ \text {Income taxes payable  }&17,000 & 35,000 \\ \text {Bonds payable  }&40,000 & 32,000 \\ \text {Common stock  }&45,000 & 40,000 \\ \text {Retained earnings }&50,000 & 35,000 \\ \text {Total liabilities and stockholders' equity }&\$ 182,000 & \$ 180,000 \end{array}    Carson did not dispose of any property,plant,and equipment during the year.It constructs its statement of cash flows using the direct method. Required: Using the direct method,prepare in good form the operating activities section of the statement of cash flows. Carson did not dispose of any property,plant,and equipment during the year.It constructs its statement of cash flows using the direct method. Required: Using the direct method,prepare in good form the operating activities section of the statement of cash flows.

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The most recent balance sheet and income statement of Dallavalle Corporation appear below: The most recent balance sheet and income statement of Dallavalle Corporation appear below:     Cash dividends were $12.The company did not retire or sell any property,plant,and equipment during the year.The net cash provided by (used in) operating activities for the year was: A)  $77 B)  $68 C)  $40 D)  $14 The most recent balance sheet and income statement of Dallavalle Corporation appear below:     Cash dividends were $12.The company did not retire or sell any property,plant,and equipment during the year.The net cash provided by (used in) operating activities for the year was: A)  $77 B)  $68 C)  $40 D)  $14 Cash dividends were $12.The company did not retire or sell any property,plant,and equipment during the year.The net cash provided by (used in) operating activities for the year was:


A) $77
B) $68
C) $40
D) $14

E) None of the above
F) A) and B)

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(Appendix 14A) The change in each of Kendall Corporation's balance sheet accounts last year follows: (Appendix 14A)  The change in each of Kendall Corporation's balance sheet accounts last year follows:    Kendall Corporation's income statement for the year was:    There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in)  operating activities on the statement of cash flows is determined using the direct method. -The net cash provided by (used in) financing activities would be: A)  $(8,000)  B)  $(13,000)  C)  $20,000 D)  $(3,000) Kendall Corporation's income statement for the year was: (Appendix 14A)  The change in each of Kendall Corporation's balance sheet accounts last year follows:    Kendall Corporation's income statement for the year was:    There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in)  operating activities on the statement of cash flows is determined using the direct method. -The net cash provided by (used in) financing activities would be: A)  $(8,000)  B)  $(13,000)  C)  $20,000 D)  $(3,000) There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in) operating activities on the statement of cash flows is determined using the direct method. -The net cash provided by (used in) financing activities would be:


A) $(8,000)
B) $(13,000)
C) $20,000
D) $(3,000)

E) B) and C)
F) A) and B)

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(Appendix 14A) Van Beeber Corporation's comparative balance sheet and income statement for last year appear below: (Appendix 14A)  Van Beeber Corporation's comparative balance sheet and income statement for last year appear below:      The company declared and paid $49,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in)  operating activities. -On the statement of cash flows,the income tax expense adjusted to a cash basis would be: A)  $39,000 B)  $69,000 C)  $9,000 D)  $25,000 (Appendix 14A)  Van Beeber Corporation's comparative balance sheet and income statement for last year appear below:      The company declared and paid $49,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in)  operating activities. -On the statement of cash flows,the income tax expense adjusted to a cash basis would be: A)  $39,000 B)  $69,000 C)  $9,000 D)  $25,000 The company declared and paid $49,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities. -On the statement of cash flows,the income tax expense adjusted to a cash basis would be:


A) $39,000
B) $69,000
C) $9,000
D) $25,000

E) A) and D)
F) B) and C)

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(Appendix 14A) Van Beeber Corporation's comparative balance sheet and income statement for last year appear below: (Appendix 14A)  Van Beeber Corporation's comparative balance sheet and income statement for last year appear below:      The company declared and paid $49,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in)  operating activities. -On the statement of cash flows,the sales adjusted to a cash basis would be: A)  $700,000 B)  $688,000 C)  $677,000 D)  $712,000 (Appendix 14A)  Van Beeber Corporation's comparative balance sheet and income statement for last year appear below:      The company declared and paid $49,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in)  operating activities. -On the statement of cash flows,the sales adjusted to a cash basis would be: A)  $700,000 B)  $688,000 C)  $677,000 D)  $712,000 The company declared and paid $49,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities. -On the statement of cash flows,the sales adjusted to a cash basis would be:


A) $700,000
B) $688,000
C) $677,000
D) $712,000

E) None of the above
F) A) and B)

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(Appendix 14A) Kilduff Corporation's balance sheet and income statement appear below: (Appendix 14A)  Kilduff Corporation's balance sheet and income statement appear below:      The company sold equipment for $19 that was originally purchased for $10 and that had accumulated depreciation of $5. The company paid a cash dividend of $44 and it did not issue any bonds payable or repurchase any of its own common stock. -The net cash provided by (used in) operating activities for the year was: A)  $187 B)  $231 C)  $257 D)  $201 (Appendix 14A)  Kilduff Corporation's balance sheet and income statement appear below:      The company sold equipment for $19 that was originally purchased for $10 and that had accumulated depreciation of $5. The company paid a cash dividend of $44 and it did not issue any bonds payable or repurchase any of its own common stock. -The net cash provided by (used in) operating activities for the year was: A)  $187 B)  $231 C)  $257 D)  $201 The company sold equipment for $19 that was originally purchased for $10 and that had accumulated depreciation of $5. The company paid a cash dividend of $44 and it did not issue any bonds payable or repurchase any of its own common stock. -The net cash provided by (used in) operating activities for the year was:


A) $187
B) $231
C) $257
D) $201

E) B) and C)
F) All of the above

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(Appendix 14A) The change in each of Kendall Corporation's balance sheet accounts last year follows: (Appendix 14A)  The change in each of Kendall Corporation's balance sheet accounts last year follows:    Kendall Corporation's income statement for the year was:    There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in)  operating activities on the statement of cash flows is determined using the direct method. -The net cash provided by (used in) investing activities would be: A)  $15,000 B)  $(10,000)  C)  $(8,000)  D)  $5,000 Kendall Corporation's income statement for the year was: (Appendix 14A)  The change in each of Kendall Corporation's balance sheet accounts last year follows:    Kendall Corporation's income statement for the year was:    There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in)  operating activities on the statement of cash flows is determined using the direct method. -The net cash provided by (used in) investing activities would be: A)  $15,000 B)  $(10,000)  C)  $(8,000)  D)  $5,000 There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in) operating activities on the statement of cash flows is determined using the direct method. -The net cash provided by (used in) investing activities would be:


A) $15,000
B) $(10,000)
C) $(8,000)
D) $5,000

E) B) and C)
F) A) and B)

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Brew Corporation's most recent comparative balance sheet and income statement appear below: Brew Corporation's most recent comparative balance sheet and income statement appear below:     Cash dividends were $37.The company did not retire or sell any property,plant,and equipment during the year.The net cash provided by (used in) operating activities for the year was: A)  $185 B)  $51 C)  $83 D)  $191 Brew Corporation's most recent comparative balance sheet and income statement appear below:     Cash dividends were $37.The company did not retire or sell any property,plant,and equipment during the year.The net cash provided by (used in) operating activities for the year was: A)  $185 B)  $51 C)  $83 D)  $191 Cash dividends were $37.The company did not retire or sell any property,plant,and equipment during the year.The net cash provided by (used in) operating activities for the year was:


A) $185
B) $51
C) $83
D) $191

E) A) and D)
F) A) and B)

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(Appendix 14A) The change in each of Kendall Corporation's balance sheet accounts last year follows: (Appendix 14A)  The change in each of Kendall Corporation's balance sheet accounts last year follows:    Kendall Corporation's income statement for the year was:    There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in)  operating activities on the statement of cash flows is determined using the direct method. -Using the direct method,the cost of goods sold adjusted to a cash basis would be: A)  $180,000 B)  $174,000 C)  $177,000 D)  $186,000 Kendall Corporation's income statement for the year was: (Appendix 14A)  The change in each of Kendall Corporation's balance sheet accounts last year follows:    Kendall Corporation's income statement for the year was:    There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in)  operating activities on the statement of cash flows is determined using the direct method. -Using the direct method,the cost of goods sold adjusted to a cash basis would be: A)  $180,000 B)  $174,000 C)  $177,000 D)  $186,000 There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in) operating activities on the statement of cash flows is determined using the direct method. -Using the direct method,the cost of goods sold adjusted to a cash basis would be:


A) $180,000
B) $174,000
C) $177,000
D) $186,000

E) A) and C)
F) A) and B)

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Dorris Corporation's balance sheet and income statement appear below: Dorris Corporation's balance sheet and income statement appear below:     Cash dividends were $7.The company sold equipment for $18 that was originally purchased for $8 and that had accumulated depreciation of $6.The net cash provided by (used in) operating activities for the year was: A)  $34 B)  $35 C)  $50 D)  $41 Dorris Corporation's balance sheet and income statement appear below:     Cash dividends were $7.The company sold equipment for $18 that was originally purchased for $8 and that had accumulated depreciation of $6.The net cash provided by (used in) operating activities for the year was: A)  $34 B)  $35 C)  $50 D)  $41 Cash dividends were $7.The company sold equipment for $18 that was originally purchased for $8 and that had accumulated depreciation of $6.The net cash provided by (used in) operating activities for the year was:


A) $34
B) $35
C) $50
D) $41

E) A) and B)
F) All of the above

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(Appendix 14A) Hayward Corporation had net sales of $610,000 and cost of goods sold of $360,000 for the just completed year. Shown below are the beginning and ending balances for the year of various accounts: (Appendix 14A)  Hayward Corporation had net sales of $610,000 and cost of goods sold of $360,000 for the just completed year. Shown below are the beginning and ending balances for the year of various accounts:    The company prepares its statement of cash flows using the direct method. -On its statement of cash flows,what amount should Howard show for its cost of goods sold adjusted to a cash basis (i.e.,cash paid to suppliers) ? A)  $345,000 B)  $366,000 C)  $379,000 D)  $373,000 The company prepares its statement of cash flows using the direct method. -On its statement of cash flows,what amount should Howard show for its cost of goods sold adjusted to a cash basis (i.e.,cash paid to suppliers) ?


A) $345,000
B) $366,000
C) $379,000
D) $373,000

E) A) and B)
F) None of the above

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Comparative balance sheets and the income statements for Ellis Corporation are presented below: Comparative balance sheets and the income statements for Ellis Corporation are presented below:      The following additional information is available for the year: * During the year,the company sold long-term investments for $35,500 that had been purchased for $38,000. * The company did not sell any property,plant,and equipment during the year or repurchase any of its own common stock. * All sales were on credit. * The company paid a cash dividend of $25,000. * The company paid cash to retire $15,000 of bonds payable. Required: a.Using the indirect method,determine the net cash provided by (used in)operating activities. b.Using the direct method,determine the net cash provided by (used in)operating activities. c.Using the net cash provided by (used in)operating activities amount from either part a or b,prepare a statement of cash flows. Comparative balance sheets and the income statements for Ellis Corporation are presented below:      The following additional information is available for the year: * During the year,the company sold long-term investments for $35,500 that had been purchased for $38,000. * The company did not sell any property,plant,and equipment during the year or repurchase any of its own common stock. * All sales were on credit. * The company paid a cash dividend of $25,000. * The company paid cash to retire $15,000 of bonds payable. Required: a.Using the indirect method,determine the net cash provided by (used in)operating activities. b.Using the direct method,determine the net cash provided by (used in)operating activities. c.Using the net cash provided by (used in)operating activities amount from either part a or b,prepare a statement of cash flows. The following additional information is available for the year: * During the year,the company sold long-term investments for $35,500 that had been purchased for $38,000. * The company did not sell any property,plant,and equipment during the year or repurchase any of its own common stock. * All sales were on credit. * The company paid a cash dividend of $25,000. * The company paid cash to retire $15,000 of bonds payable. Required: a.Using the indirect method,determine the net cash provided by (used in)operating activities. b.Using the direct method,determine the net cash provided by (used in)operating activities. c.Using the net cash provided by (used in)operating activities amount from either part a or b,prepare a statement of cash flows.

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a.Net cash provided by (used i...

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The net cash provided by (used in) operating activities for the year was:


A) $23
B) $133
C) $157
D) $87

E) B) and C)
F) A) and B)

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(Appendix 14A) Van Beeber Corporation's comparative balance sheet and income statement for last year appear below: (Appendix 14A)  Van Beeber Corporation's comparative balance sheet and income statement for last year appear below:      The company declared and paid $49,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in)  operating activities. -On the statement of cash flows,the selling and administrative expense adjusted to a cash basis would be: A)  $201,000 B)  $166,000 C)  $254,000 D)  $210,000 (Appendix 14A)  Van Beeber Corporation's comparative balance sheet and income statement for last year appear below:      The company declared and paid $49,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in)  operating activities. -On the statement of cash flows,the selling and administrative expense adjusted to a cash basis would be: A)  $201,000 B)  $166,000 C)  $254,000 D)  $210,000 The company declared and paid $49,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities. -On the statement of cash flows,the selling and administrative expense adjusted to a cash basis would be:


A) $201,000
B) $166,000
C) $254,000
D) $210,000

E) C) and D)
F) B) and D)

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Maloney Corporation's balance sheet and income statement appear below: Maloney Corporation's balance sheet and income statement appear below:      Cash dividends were $42.The company did not dispose of any property,plant,and equipment during the year. Required: Prepare the operating activities section of the statement of cash flows using the direct method. Maloney Corporation's balance sheet and income statement appear below:      Cash dividends were $42.The company did not dispose of any property,plant,and equipment during the year. Required: Prepare the operating activities section of the statement of cash flows using the direct method. Cash dividends were $42.The company did not dispose of any property,plant,and equipment during the year. Required: Prepare the operating activities section of the statement of cash flows using the direct method.

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(Appendix 14A) The most recent balance sheet and income statement of Oldaker Corporation appear below: (Appendix 14A)  The most recent balance sheet and income statement of Oldaker Corporation appear below:      The company paid a cash dividend of $42 and it did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. -The net cash provided by (used in) financing activities for the year was: A)  $(42)  B)  $3 C)  $11 D)  $(28) (Appendix 14A)  The most recent balance sheet and income statement of Oldaker Corporation appear below:      The company paid a cash dividend of $42 and it did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. -The net cash provided by (used in) financing activities for the year was: A)  $(42)  B)  $3 C)  $11 D)  $(28) The company paid a cash dividend of $42 and it did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. -The net cash provided by (used in) financing activities for the year was:


A) $(42)
B) $3
C) $11
D) $(28)

E) None of the above
F) A) and D)

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