1) Use the following information to calculate cash received from dividends:
| Dividends revenue | $ | 68,500 |
| Dividends receivable, January 1 | 5,100 | |
| Dividends receivable, December 31 | 4,100 | |
Multiple Choice
- $68,500.
- $69,500.
- $64,400.
- $73,600.
- $67,500.
2) A machine with a cost of $156,000, current year depreciation expense of $23,500 and accumulated depreciation of $98,000 is sold for $50,400 cash. The total amount related to this machine that should be reported in the operating section of the statement of cash flows under the indirect method is:
Multiple Choice
- $23,500.
- $17,100.
- $73,900.
- $31,100.
- $5,040.
3) The accountant for Crusoe Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:
| Retained earnings balance at the beginning of the year | $ | 129,500 |
| Cash dividends declared for the year | 49,500 | |
| Proceeds from the sale of equipment | 84,500 | |
| Gain on the sale of equipment | 7,700 | |
| Cash dividends payable at the beginning of the year | 21,500 | |
| Cash dividends payable at the end of the year | 24,200 | |
| Net income for the year | 95,500 | |
What is the ending balance for retained earnings?
Multiple Choice
- $283,000.
- $205,500.
- $181,000.
- $255,000.
- $175,500.
4) Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.
| Cost of goods sold | $ | 560,000 | |
| Merchandise inventory, January 1 | 91,000 | ||
| Merchandise inventory, December 31 | 109,000 | ||
| Accounts payable, January 1 | 80,000 | ||
| Accounts payable, December 31 | 66,000 | ||
Multiple Choice
- $578,000.
- $574,000.
- $592,000.
- $651,000.
- $528,000.
- 5) Bagwell's net income for the year ended December 31, Year 2 was $204,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash received from the sale of its common stock during Year 2.
| At December 31 | Year 2 | Year 1 | ||||
| Common Stock, $5 par value | $ | 519,000 | $ | 467,100 | ||
| Paid-in capital in excess of par | 967,000 | 870,100 | ||||
| Retained earnings | 707,000 | 599,100 | ||||
- Multiple Choice
- $51,900.
- $107,900.
- $148,800.
- $96,900.
- $204,000.
6) Scranton, Inc. reports net income of $247,000 for the year ended December 31. It also reports $95,100 depreciation expense and a $5,850 gain on the sale of equipment. Its comparative balance sheet reveals a $38,900 decrease in accounts receivable, a $17,450 increase in accounts payable, and a $13,650 decrease in wages payable. Calculate the cash provided (used) in operating activities using the indirect method.
Multiple Choice
- $378,950.
- $344,050.
- $283,950.
- $406,250.
- $384,800.
7) A company's income statement showed the following: net income, $147,000 and depreciation expense, $36,900. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $11,700; merchandise inventory increased $22,600; and accounts payable increased $5,700. Calculate the net cash provided or used by operating activities.
Multiple Choice
- $178,700.
- $189,100.
- $141,000.
- $212,500.
- $143,900.
8) Fernwood Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:
| Retained earnings balance at the beginning of the year | $ | 323,000 | |
| Cash dividends declared for the year | 72,500 | ||
| Proceeds from the sale of equipment | 124,600 | ||
| Gain on the sale of equipment | 7,200 | ||
| Cash dividends payable at the beginning of the year | 31,900 | ||
| Cash dividends payable at the end of the year | 39,000 | ||
| Net income for the year | 159,500 | ||
The amount of cash paid for dividends was:
Multiple Choice
- $88,600.
- $87,000.
- $70,900.
- $65,400.
- $72,500.
9) Bagwell's net income for the year ended December 31, Year 2 was $196,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash paid for dividends during Year 2.
| At December 31 | Year 2 | Year 1 | ||||
| Common Stock, $5 par value | $ | 511,000 | $ | 459,900 | ||
| Paid-in capital in excess of par | 959,000 | 862,900 | ||||
| Retained earnings | 699,000 | 591,900 | ||||
Multiple Choice
- $107,100.
- $88,900.
- $147,200.
- $96,100.
- $51,100.
- 10) In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:
| Net income for the year was | $ | 56,000 | |
| Accounts payable increased by | 22,000 | ||
| Accounts receivable decreased by | 33,000 | ||
| Inventories decreased by | 9,000 | ||
| Cash dividends paid were | 18,000 | ||
| Depreciation expense was | 28,000 | ||
- Net cash provided by operating activities was:
- Multiple Choice
- $148,000.
- $78,000.
- $79,000.
- $130,000.
- $32,000.