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.

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