A/ An _______ is added back to net income in the operating section of an indirect cash flow statement
Question;1. A/ An _______ is added back to net income in the operating section of an indirect cash flow statement.A. increase in inventoryB. depreciationC. decrease in accounts payableD. increase in accounts receivable2. The following information is available for Allsport Company:Cost of goods sold $545,000Merchandise inventory, 12/31/13 $105,000Merchandise inventory, 12/31/14 $112,000Accounts payable, 12/31/13 $98,500Accounts payable, 12/31/14 $101,300What amount was paid for merchandise during 2014?A. $554,800B. $540,800C. $549,200D. $545,0003. Knutson Company reacquired 5,000 shares of its $15-par common stock for $13/share. The debit to Treasury Stock isA. $65,000.B. $8,000.C. $10,000.D. $75,000.4. A company sold an asset with a book value of $56,000 for $35,000 cash. Which of the following is a true statement?A. Loss on sale equals $35,000 and Cash inflow equals $21,000.B. Loss on sale equals $56,000 and Cash inflow equals $56,000.C. Loss on sale equals $35,000 and Cash inflow equals $35,000.D. Loss on sale equals $21,000 and Cash inflow equals $35,000.5. On the income statement, extraordinary items are reportedA. immediately after the continuing operations section.B. before the operating income section.C. net of income tax or net of income tax savings.D. immediately before the discontinued operations section.6. For the years 2012, 2013, and 2014, the sales of Red Line, Inc. are $40,000, $60,000 and $80,000, respectively. If 2012 is the base year, the trend percentage for 2013 wasA. 150%.B. 0%.C. 133%.D. 200%.7. The formula for computing additional paid-in capital in excess of par is shares of stock timesA. selling price per share minus par value per share.B. par value per share of stock.C. selling price per share of stock.D. selling price per share plus par value per share.8. The following information applied to Advanced Industries, Inc. for 2014:Earnings/share $17.68Market price per share of common stock $52Number of shares of common stock outstanding 52,000Net income $48,000Dividends/share $7.14What is the dividend yield for Advanced Industries, Inc. (to the nearest tenth of a percent)?A. 92.3%B. 13.7%C. 40.4%D. 34.0%9. A journal entry for the sale of $10 par-common stock for $18 per share would include aA. credit to Cash.B. credit to Paid-In Capital in Excess of Par?Common Stock.C. debit to Common Stock.D. debit to Paid-In Capital in Excess of Par?Common Stock.10. On the _______ of a cash dividend, no journal entry is required.A. declaration dateB. payment dateC. preferred dateD. date of record11. Which of the following is not a part of financing activities?A. Issuing stockB. Buying landC. Paying off loansD. Paying dividends12. When a company sells off part of its business, this transaction is reported in a/ theA. retrospective application.B. continuing operations section.C. discontinued operations section.D. extraordinary items section.13. The 2013 and 2014 balance sheets for Newport Industrial showed Cash of $8,000 and $9,500, respectively, Accounts Receivable of $14, 000 and $16,000, respectively, Inventory of $11,000 and $8,000, respectively, and Accounts Payable of $5,000 and $7,000, respectively. Its 2014 income statement showed Net Sales of $108,000, Cost of Goods Sold of $62,000, and Net Income of $27,000. The cash conversion cycle for 2014 (round calculations to two decimal places) is _______ days.A. 71.30B. 141.94C. 30.08D. 40.5614. A purchase of new equipment on a note payable under the direct method is reportedA. as a separate disclosure as a non-cash transaction.B. in the operating section of the cash flow statement.C. in the financing section of the cash flow statement.D. in the investing section of the cash flow statement.15. Choose the correct formula to determine a trend percentage.A. An item from any year divided by the same item from a base year, multiplied by 100.B. Net profit of the current year divided by net profit of a base year.C. An item from the base year multiplied by the same item from the current year.D. The total income of the current year, minus the total income from a base year.16. Which is a value placed on a certificate for a share of the company's stock?A. Stated valueB. Market valueC. Additional paid-in capitalD. Paid-in capital17. Of the following, which is not classified as an investing activity on the statement of cash flows?A. Collecting the principal on loansB. Sale of equipment for cashC. Purchasing landD. Selling goods and services18. R&R Heating, Inc. has 350,000 shares of $3-par common stock outstanding. They have declared a 5% stock dividend. The current market price of the common stock is $7.50 per share. The amount that will be credited to common stock on the date of declaration isA. $183,750.B. $78,750.C. $131,250.D. $52,500.19. Other than depreciation, a company's operating expenses for the year were $335,000. Prepaid expenses decreased by $7,000. Cash payments for operating expenses to be reported on the cash flow statement using the direct method areA. $328,000.B. $7,000.C. $335,000.D. $342,000.20. Haskins, Inc. sells 1,000 shares of $12 par common stock for $20 per share. The journal entry isA. debit Cash $20,000, credit Common Stock $12,000, credit Paid-In Capital in Excess of Par-Common Stock $8,000.B. debit Cash $12,000, credit Common Stock $12,000.C. debit Cash $12,000, debit Paid-In Capital in Excess of Par?Common $8,000, credit Common Stock $20,000.D. debit Cash $20,000, credit Common Stock $20,000.21. Which of the following causes the par value of a company's stock to decrease?A. Stock dividendB. Stock splitC. Cash dividendD. Sale of additional stock22. Which is not included in paid-in capital?A. CashB. Common StockC. Preferred StockD. Additional Paid-in Capital23. Cherry Corporation's outstanding stock is 100 shares of $100 par, 11% cumulative preferred stock, and 2,000 shares of $12 par common stock. Cherry paid $1,600 in cash dividends during the year. No dividends are in arrears. Common stockholders receivedA. $1,100.B. $500.C. $0.D. $2,500.24. Fine Furniture Company had a net income of $50,000. Accounts receivable increased by $30,000, inventory decreased by $20,000, amounts payable increased by $4,000, and salaries payable decreased by $1,000. The amount of cash flow from continuing operating activities under the indirect method isA. $55,000.B. $65,000.C. $43,000.D. $37,000.25. Tucker, Inc.'s net sales decreased from $90,000 in year one to $45,000 in year two, and its cost of goods sold decreased from $30,000 in year one to $20,000 in year two. The vertical analysis based on sales for cost of goods sold for the two periods (rounded to nearest tenth of a percent) isA. 44.4% and 33.3%.B. 33.3% and 44.4%.C. 225% and 300%.D. 300% and 225%.26. Tucker Enterprises' Accounts Receivable increased by $48,000, and its Accounts Payable increased by $27,000. What is the net effect on cash from operations under the indirect method?A. ?$75,000B. ?$21,000C. +$75,000D. +$21,00027. Hallett Industries, Inc. reported net sales of $306,000, cost of goods sold of $192,600, operating expenses of $58,900, and income tax expense of 12,300. What is Hallett Industries' net income percentage?A. 62.94B. 37.06C. 17.81D. 13.7928. Allied Industrial has net sales of $1,200,000, net income of $85,000, average current assets of $53,000, average fixed assets of $184,000, and average total assets of $237,000. What is Allied Industrial's total asset turnover ratio?A. 5.06B. 22.64C. 6.52D. 0.2029. Hanna Industries has an inventory turnover of 112 days, an accounts payable turnover of 73 days, and an accounts receivable turnover of 82 days. Hanna's cash conversion cycle isA. 103 days.B. 43 days.C. 121 days.D. 9 days.30. A business wanting to incorporate must file articles of incorporation withA. any state in which they will do business.B. the state office dealing with incorporation.C. the federal government.D. the local government.31. Operating activities are transactions and events associated with selling a product or providing a service related to theA. retained earnings reported on the balance sheet.B. net income reported on the statement of retained earnings.C. assets and liabilities reported on the balance sheet.D. revenues and expenses reported on the income statement.33. Motor Works, Inc. has declared a $20,000 cash dividend to shareholders. The company has 5,000 shares of $15-par, 10% preferred stock and 10,000 shares of $20-par common stock. The preferred stock is cumulative. How much will be distributed to the preferred and common stockholders on the date of payment if the preferred stock is $8,000 in arrears?A. $20,000 preferred, $0 commonB. $8,000 preferred, $12,000 commonC. $15,500 preferred, $4,500 commonD. $7,500 preferred, $12,500 common34. Eagle Ridge, Inc. issued 40 shares of $20 par value stock to its accountant in full payment for her $900 fee for assisting in setting up the new company. The entry for the issuance of the stock is aA. debit to Paid-in Capital in Excess of Par?Common for $100.B. credit to Common Stock for $800.C. credit to Common Stock for $900.D. debit to Common Stock for $800.35. An example of a cash outflow from investing activities isA. the purchase of treasury stock.B. issuance of a note payable.C. paying cash dividends.D. making a loan to another company.36. The statement of cash flows reports the sources and uses of cash from financing, investing, and _______ activities.A. managerialB. creditC. liquidationD. operating37. The Coulter Corporation Stockholders' Equity section includes the following information:Preferred Stock $12,000Paid-in Capital in Excess of Par-Preferred $2,700Common Stock $15,000Paid-in Capital in Excess of Par-Common $4,100Retained Earnings $8,200What is the total selling price of the common stock?A. $15,000B. $27,300C. $19,100D. $14,70039. The stockholders' right of _______ means that stockholders will receive a proportionate share of any assets left after a company goes out of business.A. votingB. dividendsC. preemptionD. liquidation40. A company has current assets of $70,000, quick assets of $30,000, total assets of $150,000, current liabilities of $50,000, and net sales of $80,000. What is the current ratio of this company?A. 0.20B. 1.00C. 3.00D. 1.4041. The debt ratio is the relationship betweenA. total assets and current liabilities.B. current assets and total liabilities.C. current assets and current liabilities.D. total assets and total liabilities.42. A business's Accounts Payable balance has decreased during the year. How would this affect the statement of cash flows operations section under the indirect method?A. It would be subtracted from net income.B. It is already included in the net income.C. It does not affect the cash flow from operations.D. It would be added back to net income.
Paper#52015 | Written in 18-Jul-2015Price : $32