ACC 211 Chapter 12 Quiz

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Financial Management quiz 1. Use the following information to calculate cash paid for salaries: Salaries expense $83,000 Salaries payable, January 1 7,200 Salaries payable, December 1 3,720 $86,480 $86,720 $83,000 $79,280 $90,200 2 Use the following information and the indirect method to calculate the net cash provided or used by operating activities: Cash paid for purchase of plant assets $19,050 Decrease in interest payable 2,450 Depreciation expense 39,000 Gain on retirement of bonds 42,800 Increase in accounts receivable 53,500 Loss on sale of plant receivable 6,350 Net Income 98,500 $119,350 $28,750 $45,100 $154,000 $89,250 3 A corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2014 fiscal year was $694,000. Depreciation and amortization expense of $66,000 and $33,000 respectively were included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable $24,000 Increase in inventories 10,400 Increase Prepaid expense 9,900 Increase in salaries payable 11,400 Decrease in income taxes payable 15,900 Determine the net cash flow provided (used) by operating activities. ($584,600) $765,000 $792,200 ($765,000) ($792,200) 4 Assume the following information was available for the current year’s operations of the shoe company founded by Blake Mycoskie, TOMS. Use these data to calculate the cash paid for merchandise. Cost of goods sold $253,600 Merchandise inventory, January 1 62,000 Merchandise inventory, December 31 65,800 Accounts payable, January 1 60,400 Accounts payable, December 31 67,000 $243,200 $250,800 $250,600 $256,400 $264,000 5 Net income of Lucky Company was $66,000. The accounting records reveal depreciation expense of $127,000 as well as increases in prepaid rent, salaries payable, and income taxes payable of $95,000, $19,900, and $18,200, respectively. What is the net cash flow provided (used) by operating activities? $326,100 $136,100 $56,900 $194,700 $249,900 6 A company had wage expense of $640,000 during a given period. Compute cash paid for wages during this period given the following data: Beginning Balance Ending Balance Wages payable $96,000 $45,000 $640,000 $51,000 $141,000 $691,000 $589,000 7 The accounting records of Miller Company provided the data below ($ in 000s). Net income $33,700 Depreciation expense 16,050 Increase in accounts receivable 8,450 Decrease in inventory 6,850 Decrease in prepaid insurance 2,850 Decrease in salaries payable 4,950 Increase in interest payable 1,800 What is the net cash provided (used) by operating activities? rev: 12_10_2014_QC_CS-1452 $74,650 $47,850 $7,400 ($47,850) $52,900 8 A company’s income statement showed the following: net income, $158,200; depreciation expense, $38,100, and gain on sale of plant assets, $18,050. An examination of the company’s current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $12,100; merchandise inventory increased $23,400; prepaid expenses decreased $8,900; accounts payable increased $5,200. Calculate the net cash provided or used by operating activities. $179,200 $181,050 $8,900 $211,550 $186,800 9 A company’s inventory balance was $202,000 at 12/31/11 and $189,800 at 12/31/12. Its accounts payable balance was $80,800 at 12/31/11 and $84,900 at 12/31/12, and its cost of goods sold for 2012 was $727,200. The company’s total amount of cash payments for merchandise in 2012 equals: $735,300 $743,500 $719,100 $727,200 $710,900 10 A company’s cash flow on total assets ratio equals 16%. If average total assets equal $3,171,500 and total cash flows equal $648,000, what is the amount of cash flows from operations? $611,120 $103,680 $507,440 $19,821,875 $648,000