60.1K

Verified Solution

Link Copied!

• 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.

Answer & Explanation Solved by verified expert

See Answer