Crocker Inc. had the following activity during 20X7: \[\begin{array} { | l | r | } \hline \text { Proceeds from sale of bonds payable } & \$ 200,000 \\ \hline \text { Loss from disposal of equipment (\$0 proceeds from disposal) } & \$ 38,000 \\ \hline \text { Dividends paid to shareholders } & \$ 25,000 \\ \hline \text { Sale of shares } & \$ 125,000 \\ \hline \text { Gain on the sale of short term investments } & \$ 75,000 \\ \hline \end{array}\] What is the cash flow from investing activities?

A) $57,000 B) $0 C) $93,000 D) $22,000 A) $57,000 B) $0 C) $93,000 D) $22,000

The financial statements of Juliet Company show the following: \[\begin{array} { | l | r | r | } \hline & \text { Beginning balance } & \text { Ending balance } \\ \hline \text { Trade receivables } & \$ 28,000 & \$ 22,000 \\ \hline \text { Trade payables } & \$ 21,000 & \$ 25,000 \\ \hline \text { Sales } & & \$ 154,000 \\ \hline \end{array}\] How much cash was collected from customers?

A) $148,000. B) $150,000. C) $154,000. D) $160,000. A) $148,000. B) $150,000. C) $154,000. D) $160,000.

Match between columns Premises: Collection of interest on a note receivable Payment of debt principal with cash Sales of operational assets Payment of cash dividends Issuance of shares for cash Borrowing cash from the bank Purchase of operational assets for cash Collections of dividends on long term investments

The Answer of Investing and Financing and Operating and A is...

Exam 5: Fraud, Internal Control, and Cash

Trade receivables arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. Profit reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities, prepared using the indirect method, is

(Multiple Choice)

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Question 41

The sales terms for Jensen Company are 10 percent down and the balance due by the end of the following month. Sales for January, February and March were $8,500, $11,500 and $13,000 respectively. The cash collections from operations for the month of February would be closest to?

(Multiple Choice)

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Question 42

Crocker Inc. had the following activity during 20X7: Proceeds from sale of bonds payable \ 200,000 Loss from disposal of equipment ( \0 proceeds from disposal) \ 38,000 Dividends paid to shareholders \ 25,000 Sale of shares \ 125,000 Gain on the sale of short term investments \ 75,000 What is the cash flow from investing activities?

(Multiple Choice)

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Question 43

Dividends collected from a long-term investment are cash ﬂows from investing activities.

(True/False)

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Question 44

The indirect method starts with net earnings and converts them to net cash provided by operating activities. This means that:

(Multiple Choice)

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Question 45

While preparing a statement of cash flow, you encountered the following transaction: February 1, 20X1: Zorro Corporation acquired a small office building in exchange for 5, 000 shares of its own common shares; par value $10 per share; market value $15 per share. (a) Should this transaction be included in the calculations on the statement of cash flows or shown in the notes? (b) Explain your answer .

(Essay)

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Question 46

Loans to other companies (notes receivable) are cash ﬂows from investing activities.

(True/False)

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Question 47

The financial statements of Juliet Company show the following: Beginning balance Ending balance Trade receivables \ 28,000 \ 22,000 Trade payables \ 21,000 \ 25,000 Sales \ 154,000 How much cash was collected from customers?

(Multiple Choice)

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Question 48

Selected transactions of Torts Corporation are listed below. 1. Collected a trade receivable. 2. Declared and paid dividends on common shares. 3. Sold long-term investments for cash. 4. Issued common shares for equipment. 5. Repaid a five-year note payable. 6. Paid employee wages. 7. Converted bonds payable to common shares. 8. Acquired long-term investment with cash. 9. Sold buildings and equipment for cash. 10. Sold merchandise to customers. Classify each transaction as either (a) an operating activity, (b) an investing activity, (c) a financing activity, or (d) a noncash investing and financing activity.

(Short Answer)

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Question 49

In the indirect method, an increase in trade receivables is reported on the statement of cash ﬂows as:

(Multiple Choice)

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Question 50

A low capital expenditures ratio indicates a higher need to obtain outside ﬁnancing to expand property, plant, and equipment assets.

(True/False)

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Question 51

The following information was available from the financial statements of C Co. Company for the years 20X6 and 20X7 in millions of dollars: 20X7 20X6 Cash flow from operating activities \ 3,883 \ 3,433 Cash paid for purchases of property, plant, and equipment \ 1,069 \ 863 Average property, plant and equipment, net \ 3,968 \ 3,706 A. Calculate the capital expenditures ratio for C Co. for the two years: B. Comment on the suficiency of the capital expenditures ratio for the two years.

(Essay)

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Question 52

Which of the following would be an example of an investing activity on the cash ﬂow statement?

(Multiple Choice)

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Question 53

Financing activities involve

(Multiple Choice)

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Question 54

The acquisition of a building by issuing a mortgage note payable would be considered both an investing activity and ﬁnancing activity that do not affect cash and would be reported in the notes to the ﬁnancial statements.

(True/False)

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Question 55

Capital expenditures are a normal use of cash for ﬁrms.

(True/False)

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Question 56

Which of the following transactions is not a direct use of cash?

(Multiple Choice)

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Question 57

While creditors rely heavily on cash ﬂow information, investors do not need to be concerned with cash ﬂows and can rely exclusively on earnings.

(True/False)

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Question 58

Match each activity below with the proper classification

Collection of interest on a note receivable

Investing

Payment of debt principal with cash

Financing

Sales of operational assets

Operating

Correct Answer:

Verified

Collection of interest on a note receivable

Payment of debt principal with cash

Sales of operational assets

Payment of cash dividends

(Matching)

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Question 59

The information in statement of cash ﬂows should help investors and creditors evaluate:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 144

The sales terms for Jensen Company are 10 percent down and the balance due by the end of the following month. Sales for January, February and March were $8,500, $11,500 and $13,000 respectively. The cash collections from operations for the month of February would be closest to?

Dividends collected from a long-term investment are cash ﬂows from investing activities.

The indirect method starts with net earnings and converts them to net cash provided by operating activities. This means that:

Loans to other companies (notes receivable) are cash ﬂows from investing activities.

The financial statements of Juliet Company show the following: Beginning balance Ending balance Trade receivables \ 28,000 \ 22,000 Trade payables \ 21,000 \ 25,000 Sales \ 154,000 How much cash was collected from customers?

In the indirect method, an increase in trade receivables is reported on the statement of cash ﬂows as:

A low capital expenditures ratio indicates a higher need to obtain outside ﬁnancing to expand property, plant, and equipment assets.

Which of the following would be an example of an investing activity on the cash ﬂow statement?

Financing activities involve

The acquisition of a building by issuing a mortgage note payable would be considered both an investing activity and ﬁnancing activity that do not affect cash and would be reported in the notes to the ﬁnancial statements.

Capital expenditures are a normal use of cash for ﬁrms.

Which of the following transactions is not a direct use of cash?

While creditors rely heavily on cash ﬂow information, investors do not need to be concerned with cash ﬂows and can rely exclusively on earnings.

The information in statement of cash ﬂows should help investors and creditors evaluate:

Business Decisions and Financial Accounting

The Balance Sheet

The Income Statement

Adjustments, Financial Statements, and Financial Results

Merchandising Operations and the Multistep Income Statement

Inventory and Cost of Goods Sold

Receivables, Bad Debt Expense, and Interest Revenue

Long-Lived Tangible and Intangible Assets

Liabilities

Stockholders Equity

Statement Cash Flows

Measuring and Evaluating Financial Performance

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