Filters
Question type
Study Flashcards

Last year Marton Corporation reported a cost of goods sold of $720,000 on its income statement.The following additional data were taken from the company's comparative statement of financial position for the year: The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows.The cost of goods sold adjusted to a cash basis would be:  Ending  Beginning  Inventory............. $105,000$85,000 Accounts payable ..... $65,000$92,000\begin{array} { l r r } & { \text { Ending } } & \text { Beginning } \\\text { Inventory............. } & \$ 105,000 & \$ 85,000 \\\text { Accounts payable ..... } & \$ 65,000 & \$ 92,000\end{array}


A) $740,000
B) $767,000
C) $747,000
D) $673,000

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

Correct Answer

verifed

verified

Wister Corporation had net sales of $462,000 for the just completed year.Shown below are the beginning and ending balances of various Wister accounts: Wister prepares its statement of cash flows using the direct method.On its statement of cash flows,what amount should Wister show for its net sales adjusted to a cash basis (i.e. ,cash received from sales) ?  Ending  Beginning  Cash................... $105,000$132,000 Accounts receivable...... $168,000$142,000 Inventory................. $472,000$536,000 Accounts payable........ $74,000$91,000 Retained earnings....... $364,000$292,000\begin{array} { l r r } & \text { Ending } & \text { Beginning } \\\text { Cash................... } & \$ 105,000 & \$ 132,000 \\\text { Accounts receivable...... } & \$ 168,000 & \$ 142,000 \\\text { Inventory................. } & \$ 472,000 & \$ 536,000 \\\text { Accounts payable........ } & \$ 74,000 & \$ 91,000 \\\text { Retained earnings....... } & \$ 364,000 & \$ 292,000\end{array}


A) $488,000
B) $436,000
C) $462,000
D) $445,000

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

Correct Answer

verifed

verified

Carr Corporation's comparative statement of financial position and income statement for last year appear below: The company declared and paid $47,000 in cash dividends during the year.It did not dispose of any property,plant,and equipment during the year. Required: Construct in good form the operating activities section of the company's statement of cash flows for the year using the direct method. Carr Corporation's comparative statement of financial position and income statement for last year appear below: The company declared and paid $47,000 in cash dividends during the year.It did not dispose of any property,plant,and equipment during the year. Required: Construct in good form the operating activities section of the company's statement of cash flows for the year using the direct method.

Correct Answer

verifed

verified

Carson Corporation's comparative statement of financial position and income statement for last year appear below: 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 Corporation's comparative statement of financial position and income statement for last year appear below: 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.

Correct Answer

verifed

verified

Shimko Corporation's most recent comparative statement of financial position and income statement appear below: The company paid a cash dividend of $19 and it did not dispose of any property,plant,and equipment.The company did not issue any bonds payable or repurchase any of its own common stock.The following questions pertain to the company's statement of cash flows. Shimko Corporation's most recent comparative statement of financial position and income statement appear below: The company paid a cash dividend of $19 and it did not dispose of any property,plant,and equipment.The company did not issue 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) operating activities for the year was: A) $23 B) $133 C) $157 D) $87 -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 D)

Correct Answer

verifed

verified

B

Van Beeber Corporation's comparative statement of financial position 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 operating activities. Van Beeber Corporation's comparative statement of financial position 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 operating activities. -On the statement of cash flows,the cost of goods sold adjusted to a cash basis would be: A) $360,000 B) $350,000 C) $370,000 D) $381,000 -On the statement of cash flows,the cost of goods sold adjusted to a cash basis would be:


A) $360,000
B) $350,000
C) $370,000
D) $381,000

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

Correct Answer

verifed

verified

Last year,Knox Corporation reported on its income statement sales of $375,000 and cost of goods sold of $140,000.During the year,the balance in accounts receivable increased $30,000,the balance in accounts payable decreased $25,000,and the balance in inventory increased $10,000.The company uses the direct method to determine the net cash provided by operating activities on its statement of cash flows. -Under the direct method,cost of goods sold adjusted to a cash basis would be:


A) $105,000
B) $125,000
C) $175,000
D) $155,000

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

Correct Answer

verifed

verified

The most recent statement of financial position 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 most recent statement of financial position 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) investing activities for the year was: A) $(127) B) $(138) C) $138 D) $127 -The net cash provided by (used in) investing activities for the year was:


A) $(127)
B) $(138)
C) $138
D) $127

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

Correct Answer

verifed

verified

LFM Corporation reported cost of goods sold on its income statement of $15,000.The following account balances appeared on the company's comparative statement of financial position for the same year: The company uses the direct method to determine the net cash provided by operating activities.The cost of goods sold,adjusted to a cash basis,on the company's statement of cash flows for the year would be:  Ending Balance Beginning Balance  Inventory.................... $33,000$30,000 Accounts Payable ....... $23,000$21,000\begin{array}{lcc}&\text { Ending Balance }&\text {Beginning Balance }\\\text { Inventory.................... } & \$ 33,000 & \$ 30,000 \\\text { Accounts Payable ....... } & \$ 23,000 & \$ 21,000\end{array}


A) $14,000
B) $16,000
C) $10,000
D) $15,000

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

Correct Answer

verifed

verified

Harkey Corporation's statement of financial position and income statement appear below: Cash dividends were $29.The company sold equipment for $15 that was originally purchased for $6 and that had accumulated depreciation of $2. Required: Using the direct method,determine the net cash provided by operating activities.

Correct Answer

verifed

verified

The changes in Northrup Corporation's statement of financial position account balances for last year appear below: The company's income statement for the year appears below: The company declared and paid $28,000 in cash dividends during the year.It did not dispose of any property,plant,and equipment during the year.The company uses the direct method to determine the net cash provided by operating activities. Assets and Contra-asset AccountsProperty, plant and equipment...........Acoumulated depreciation..................Long-term investments.......................Accounts recevable.............................Inventory...........................................Prepaid expenses................................Cash and cash equivalents.................. Equity and Libbilities Accounts Common stock.................................... Retained earnings............................... Bonds payable.................................... Acoounts payable............................... Accrued liabilties................................ Income taxes payable..........................Increase(Decreases) $′000256840(4) (2) 241063(70) (6) 8(8) \begin{array}{c}\begin{array}{lll}\\\\ \text {Assets and Contra-asset Accounts}\\ \text {Property, plant and equipment...........}\\ \text {Acoumulated depreciation..................}\\ \text {Long-term investments.......................}\\ \text {Accounts recevable.............................}\\ \text {Inventory...........................................}\\ \text {Prepaid expenses................................}\\ \text {Cash and cash equivalents..................}\\\\ \text { Equity and Libbilities Accounts}\\ \text { Common stock....................................}\\ \text { Retained earnings...............................}\\ \text { Bonds payable....................................}\\ \text { Acoounts payable...............................}\\ \text { Accrued liabilties................................}\\ \text { Income taxes payable..........................}\end{array}\begin{array}{r}\text {Increase}\\\text {(Decreases) }\\\$^′ 000 \\25 \\68 \\40 \\\color{red}{(4) }\\\color{red}{(2) } \\2 \\4\\\\\\10\\63\\\color{red}{(70) }\\\color{red}{(6) }\\8\\\color{red}{(8) }\end{array}\end{array}  Income Statement $′000 Revenue.............................................. 980 Cost of goods sold............................... 540‾Gross margin....................................... 440Selling and administrative expense...... 310‾ Net operating income.......................... 130 Income taxes....................................... 39‾ Net income..........................................91‾\begin{array}{c}\text { Income Statement }\\\\\begin{array}{lr}&\$^′ 000 \\ \text { Revenue.............................................. } &980 \\ \text { Cost of goods sold............................... } &\underline{540}\\ \text {Gross margin....................................... } &440\\ \text {Selling and administrative expense...... } &\underline{310}\\ \text { Net operating income.......................... } &130\\ \text { Income taxes....................................... } &\underline{39}\\ \text { Net income..........................................}&\underline{91}\end{array}\end{array} -On the statement of cash flows,the selling and administrative expense adjusted to a cash basis would be:


A) $304,000
B) $384,000
C) $310,000
D) $236,000

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

Correct Answer

verifed

verified

D

The most recent statement of financial position 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 most recent statement of financial position 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) operating activities for the year was: A) $168 B) $8 C) $152 D) $229 -The net cash provided by (used in) operating activities for the year was:


A) $168
B) $8
C) $152
D) $229

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

Correct Answer

verifed

verified

Van Beeber Corporation's comparative statement of financial position 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 operating activities. Van Beeber Corporation's comparative statement of financial position 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 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 -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) B) and C)
F) All of the above

Correct Answer

verifed

verified

B

The change in each of Kendall Corporation's statement of financial position 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 operating activities on the statement of cash flows is determined using the direct method.  Statement of Financial Position Increase Decrease$′000$′000 Assets  Property, plant and equipment 10 Acoumulated depreciation 8 Long-term investment 15 Acoounts receivable 2 Inventory 3 Prepaid expenses 4 Cash and cash equivalents 3Equity and Liabilities  Common stock 5 Retained earnings 4Bonds payable 13Accounts payable 9Accrued liabilities 6\begin{array}{c}\text { Statement of Financial Position }\\\\\begin{array}{lc}&\text {Increase}&\text { Decrease}\\&\$^′000&\$^′000\\ \text { Assets }&&\\\text { Property, plant and equipment } & 10 \\\text { Acoumulated depreciation } & 8 \\\text { Long-term investment } & &15 \\\text { Acoounts receivable } &2 \\\text { Inventory } & &3 \\\text { Prepaid expenses } & 4\\\text { Cash and cash equivalents }&3\\\\ \text {Equity and Liabilities } & \\ \text { Common stock } &5\\ \text { Retained earnings } &4\\ \text {Bonds payable } &&13\\ \text {Accounts payable } &&9\\ \text {Accrued liabilities } &6\\\end{array}\end{array}  Income Statement $′000 Revenue 300 Cost of goods sold 180‾ Gross margin 120 Selling and administrative expens 116‾ Net inoome 4‾\begin{array}{c}\text { Income Statement }\\\\\begin{array}{lr}&\$^′000\\\text { Revenue } & 300 \\\text { Cost of goods sold } &\underline{ 180 }\\\text { Gross margin } & 120 \\\text { Selling and administrative expens } & \underline{116 }\\\text { Net inoome }& \underline{4 }\\\end{array} \end{array} -Using the direct method,sales adjusted to a cash basis would be:


A) $300,000
B) $302,000
C) $298,000
D) $305,000

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

Correct Answer

verifed

verified

Last year,Knox Corporation reported on its income statement sales of $375,000 and cost of goods sold of $140,000.During the year,the balance in accounts receivable increased $30,000,the balance in accounts payable decreased $25,000,and the balance in inventory increased $10,000.The company uses the direct method to determine the net cash provided by operating activities on its statement of cash flows. -Under the direct method,sales adjusted to a cash basis would be:


A) $295,000
B) $345,000
C) $405,000
D) $355,000

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

Correct Answer

verifed

verified

Kilduff Corporation's statement of financial position 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. Kilduff Corporation's statement of financial position 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) financing activities for the year was: A) $(44) B) $(71) C) $2 D) $(29) -The net cash provided by (used in) financing activities for the year was:


A) $(44)
B) $(71)
C) $2
D) $(29)

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

Correct Answer

verifed

verified

The ending balance of accounts receivable was $69,000.Sales,adjusted to a cash basis using the direct method on the statement of cash flows,were $354,000.Sales reported on the income statement were $378,000.Based on this information,the beginning balance in accounts receivable was:


A) $93,000
B) $24,000
C) $94,000
D) $45,000

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

Correct Answer

verifed

verified

Brew Corporation's most recent comparative statement of financial position 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: Brew Corporation's most recent comparative statement of financial position 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


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

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

Correct Answer

verifed

verified

The change in each of Kendall Corporation's statement of financial position 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 operating activities on the statement of cash flows is determined using the direct method.  Statement of Financial Position Increase Decrease$′000$′000 Assets  Property, plant and equipment 10 Acoumulated depreciation 8 Long-term investment 15 Acoounts receivable 2 Inventory 3 Prepaid expenses 4 Cash and cash equivalents 3Equity and Liabilities  Common stock 5 Retained earnings 4Bonds payable 13Accounts payable 9Accrued liabilities 6\begin{array}{c}\text { Statement of Financial Position }\\\\\begin{array}{lc}&\text {Increase}&\text { Decrease}\\&\$^′000&\$^′000\\ \text { Assets }&&\\\text { Property, plant and equipment } & 10 \\\text { Acoumulated depreciation } & 8 \\\text { Long-term investment } & &15 \\\text { Acoounts receivable } &2 \\\text { Inventory } & &3 \\\text { Prepaid expenses } & 4\\\text { Cash and cash equivalents }&3\\\\ \text {Equity and Liabilities } & \\ \text { Common stock } &5\\ \text { Retained earnings } &4\\ \text {Bonds payable } &&13\\ \text {Accounts payable } &&9\\ \text {Accrued liabilities } &6\\\end{array}\end{array}  Income Statement $′000 Revenue 300 Cost of goods sold 180‾ Gross margin 120 Selling and administrative expens 116‾ Net inoome 4‾\begin{array}{c}\text { Income Statement }\\\\\begin{array}{lr}&\$^′000\\\text { Revenue } & 300 \\\text { Cost of goods sold } &\underline{ 180 }\\\text { Gross margin } & 120 \\\text { Selling and administrative expens } & \underline{116 }\\\text { Net inoome }& \underline{4 }\\\end{array} \end{array} -The selling and administrative expense adjusted to a cash basis would be:


A) $120,000
B) $106,000
C) $110,000
D) $112,000

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

Correct Answer

verifed

verified

Digby Corporation's statement of financial position and income statement appear below: Cash dividends were $29.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 in good form using the direct method. Digby Corporation's statement of financial position and income statement appear below: Cash dividends were $29.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 in good form using the direct method.

Correct Answer

verifed

verified

Showing 1 - 20 of 56

Related Exams

Exam 1

Absorption Costing and Variable Costing

28 Questions

Exam 3

Further Classification of Labor Costs

18 Questions

Exam 4

Cost of Quality

24 Questions

Exam 5

Least-Squares Regression Computations

22 Questions

Exam 6

Absorption Costing and Variable Costing

38 Questions

Exam 7

Abc Action Analysis

16 Questions

Exam 8

Use Activity-Based Costing Technique to Compute Product Costs for External Reports

16 Questions

Exam 9

Fifo Method

72 Questions

Exam 10

Compute and Interpret the Fixed Overhead Variances

87 Questions

Exam 11

Journal Entries to Record Variances

46 Questions

Exam 12

Transfer Pricing

18 Questions

Exam 13

The Concept of Present Value

14 Questions

Exam 14

Income Taxes in Capital Budgeting Decisions

33 Questions

Exam 15

Pricing Products and Services

84 Questions

Exam 16

Profitability Analysis

76 Questions

Show Answer