Question 1

A company's income statement for the year shows a net loss of $90,000. Additional information for the year follows:  What is the net cash flows from operating activities?

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The answer of A company's income statement for the year...

Question 2

The income statement and selected balance sheet information for Fudnuddler Corporation for the year ended December 31, 2011 is presented below.

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The answer of The income statement and selected balance sheet...

Question 3

The following information is taken from the 2011 income statement of Muir Company:  Based on this information, what is the net cash flows from operating activities?

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The answer of The following information is taken from the...

Question 4

Given this information, what is the amount of cash collected from customers?

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The answer of Given this information, what is the amount...

Question 5

Given this information, what is the amount of cash paid for rent?

Accepted Answer

The question asks for the amount of cash paid for rent. The only choice that mentions cash is A, which states that $9,000 was paid in cash for rent.

Question 6

In 2011, a company paid $4,500 which it owed from its 2010 income tax liability and $30,000 for its 2011 tax liability. The company still owes $6,000 at year-end. How much should the company report as cash paid for income taxes on its 2011 statement of cash flows, using the direct method?

Accepted Answer

The company should report $34,500 as cash paid for income taxes on its 2011 statement of cash flows. This includes the $4,500 paid for the 2010 tax liability and the $30,000 paid for the 2011 tax liability.

Question 7

Use the information provided above to calculate the net cash flow from operat ing activities in 2011 using the direct method.

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The answer of Use the information provided above to calculate...

Question 8

Condensed financial data of Monopoly Corporation appear below:

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The answer of Condensed financial data of Monopoly Corporation appear...

Question 9

Given this information, what is the amount of cash collected for rent?

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The answer of Given this information, what is the amount...

Question 10

The company uses the indirect method in preparing the statement of cash flows. What is the amount of depreciation expense that will be reported in the operating activities section of the statement?

Accepted Answer

Depreciation expense is added back to net income in the operating activities section of the statement of cash flows when using the indirect method.

Question 11

Given this information, what is the amount of cash paid for wages?

Accepted Answer

The correct amount of cash paid for wages is $36,000, as indicated by the choice C.

Question 12

Given this information, what is the amount of inventory purchases?

Accepted Answer

The correct choice is $78,000, which is the amount of inventory purchases.

Question 13

Wickersham Brothers Inc. is developing its annual financial statements at December 31, 2011. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statements are summarized.  a. Prepare the statement of cash flows for 2011 using the indirect method.
b. Calculate the quality of income ratio and capital acquisitions ratio for 2011.

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The answer of Wickersham Brothers Inc. is developing its annual...

Question 14

If the cash balance at the beginning of the current year was $0, what is the amount of cash at the end of the year?

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The answer of If the cash balance at the beginning...

Question 15

A corporation had a net increase in retained earnings of $65,000 for the year. The corporation also paid $20,000 of cash dividends that had been declared in the previous year. This year, the corporation declared
$18,000 of dividends but has not paid them as of year-end. Given this information, the net income for the current year must have been:

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The answer of A corporation had a net increase in...

Question 16

Given this information, what is the amount of cash paid for insurance?

Accepted Answer

The amount of insurance expense reported on the income statement is $14,000. This means that the company paid $14,000 in cash for insurance during the period.

Question 17

For each letter in the T-accounts below, calculate the missing amount and explain (in words) what each item represents.

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The answer of For each letter in the T-accounts below,...

Question 18

Given this information, what is the amount of cash paid for inventory?

Accepted Answer

The amount of cash paid for inventory is $77,000. This is because the beginning inventory was $75,000, and the ending inventory was $73,000. Therefore, the cost of goods sold was $75,000 - $73,000 = $2,000. The amount of cash paid for inventory is equal to the cost of goods sold plus the ending inventory, which is $2,000 + $73,000 = $77,000.

Question 19

What was the amount of cash paid for purchases of equipment during the year?

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The answer of What was the amount of cash paid...

Question 20

Use the information provided above to calculate the company's:
a. net income for 2011.
b. net cash flow from operating activities in 2011 using the indirect method.

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