The document provides accounting information for multiple companies, including transactions, income statements, balance sheets, and cash flows. It asks multiple choice and calculation questions related to determining cash flows from operating, investing and financing activities using the direct and indirect methods based on the information provided.
The document provides accounting information for multiple companies, including transactions, income statements, balance sheets, and cash flows. It asks multiple choice and calculation questions related to determining cash flows from operating, investing and financing activities using the direct and indirect methods based on the information provided.
The document provides accounting information for multiple companies, including transactions, income statements, balance sheets, and cash flows. It asks multiple choice and calculation questions related to determining cash flows from operating, investing and financing activities using the direct and indirect methods based on the information provided.
The document provides accounting information for multiple companies, including transactions, income statements, balance sheets, and cash flows. It asks multiple choice and calculation questions related to determining cash flows from operating, investing and financing activities using the direct and indirect methods based on the information provided.
Indicate how each of the following events should be classified in a statement of cash flows for the current calendar year. Use the following code: O = operating activities, I = investing activities, and F = financing activities
Assume use of the direct method. If the event does not involve a cash flow that should be included in the statement of cash flows, use an X.
____ (a) Paid an account payable for inventory purchased in a prior accounting period. ____ (b) On December 28, made a large credit sale; terms, 2/10, n/30. ____ (c) Received a dividend from an investment in IBM common stock. ____ (d) Paid a dividend to stockholders. ____ (e) Paid the interest on a note payable to First Bank. ____ (f) Paid the principal amount due on the note payable to First Bank. ____ (g) Transferred cash from a checking account into a money market fund. ____ (h) Made an adjusting entry to record accrued wages payable at the end of the period. ____ (i) Recorded depreciation expense for the current year. ____ (j) Purchased plant assets for cash.
An analysis of Korman Corporation's Investment in Marketable Securities account during 2015
disclosed the following:
Korman's 2015 income statement included a $40,000 gain on sale of marketable securities and $30,000 dividend income from marketable securities. All payments and proceeds relating to marketable securities transactions were in cash. The financial statements of New World, Inc., provide the following information for the current year: 84. Refer to the information above. Based solely on the above information, Korman's net cash flow from investing activities for 2015 is:
$80,000 net cash used by investing activities.
$80,000 net cash provided by investing activities. $120,000 net cash provided by investing activities. $240,000 net cash provided by investing activities.
54. Refer to the information above. Compute the amount of cash received from customers during the current year.
$3,097,500. $3,129,000. $3,066,000. $3,612,000.
55. Refer to the information above. Compute the amount of New World's cash payments for purchases of merchandise during the current year.
$1,627,500. $1,622,250. $1,638,000. $2,157,750.
. 56. Refer to the information above. Compute the amount of New World's cash payments for operating expenses.
$277,200. $283,500. $378,000. $349,650.
57. Refer to the information above. New World's net cash flow from operating activities for the current year is:
$1,191,750. $1,192,800. $1,113,000. $1,160,250. 132. At the end of the first year of operations, the balance sheet of Midwood Medical Supply showed the following account balances: Accounts Receivable, $5,000; Accounts Payable, $6,000; Inventory, $3,000; and Unexpired Insurance, $2,000. The corporation reported net income of $79,000 for the year, including depreciation expense of $5,000, and uses the indirect method of computing net cash flow from operating activities. Solely on the basis of this information, net cash flow from operating activities is:
$78,000. $82,000. $77,000. $80,000. 103. The accountant for Foster Institute, Inc., determined the cash flow for several transactions to be as follows:
On the basis of the above transactions alone, determine the net cash flow from financing activities.
$275,000 net cash used for financing activities.
$440,000 net cash provided by financing activities. Zero: cash inflows equal cash outflows from financing activities. $285,000 net cash provided by financing activities. 153.Computation of operating cash flows
The financial statements of Custom Corporation provide the following information for the current year:
Using this information, compute for the current year:
161.Cash flow from operations activities-indirect method
An analysis of the 2015 financial statements of Portside Provisions reveals the following:
(a) Accounts payable to suppliers of merchandise decreased by $65,000 during 2015.
(b) Dividends of $135,000 were declared in November 2015, to be paid in January 2016. (c) Dividends of $120,000, declared in November 2014, were paid in January 2015. (d) Inventory levels increased by $91,000 during 2015. (e) Depreciation expense for 2015 amounted to $53,000. (f) Land, which had a cost of $350,000, was sold in 2015 for $400,000 cash, resulting in a gain of $50,000. (g) Net income for 2015 was $745,000.
Using only the above information, follow the indirect method to compute Portside Provisions' net cash flows from operating activities for 2015. 162. Cash flows from operating activities-indirect method
The data below are taken from the financial statements of the Rutherford Corporation:
Complete the partial statement of cash flows for the year ended December 31, 2015, showing the computation of net cash flows from operating activities by the indirect method:
