80.2K

Verified Solution

Link Copied!

Question 4 part A: If a company has an interest expense of $2,000, a tax expense of $3,000, net income of $7,000, and total expenses and losses of $20,000, what is the company's revenues and gains on the single-step income statement?

a		$35,000
b		$32,000
c		$30,000
d		$27,000
e		$22,000

part b: If the indirect method is used to prepare a statement of cash flow, the net cash used and provided by each type of activities can be found by:

a		Reporting and summarizing major classes of gross cash receipts and payments.
b		Adding up all the amount paid and received in cash and making adjustments for depreciations.
c		Identifying transactions only involving cash and adding up their effects on cash flow balance.
d		Starting with the change in net income copied from the financial statements and making .adjustments, especially for non-cash items
e		Summarizing a firm's revenues and expenses over a given period of time.

part c: To calculate retained earnings at the end of the year, retained earnings is/are __________.

a		increased by the current year net income
b		decreased by the current year net income
c		increased by the current year's dividends
d		decreased by the current year's dividends
e		both 1 and 4

Answer & Explanation Solved by verified expert

See Answer