11) Zimbalist Corporation reports a decrease in Salaries Payable of $5,000. If Salaries Expense totaled $187,000 for the year, the cash paid to employees is:
A) $177,000.
B) $182,000.
C) $187,000.
D) $192,000.
12) Sweeten Corporation had sales of $900,000. The beginning Accounts Receivable balance was $70,000 and the ending Accounts Receivable balance was $230,000. The cash collected from customers for this reporting period is:
A) $670,000.
B) $740,000.
C) $970,000.
D) $1,060,000.
13) Under the direct method of preparing the statement of cash flows, which statement is CORRECT regarding the method of computing cash payments to suppliers for inventory?
A) Cost of goods sold less a decrease in inventory plus an increase in accounts payable
B) Cost of goods sold plus an increase in inventory less an increase in accounts payable
C) Cost of goods sold plus an increase in inventory plus an increase in accounts payable
D) Cost of goods sold plus a decrease in inventory plus an increase in accounts payable
14) Early Years Corporation reports a $17,000 increase in Inventory and a $30,000 increase in Accounts Payable for the year. If the Cost of Goods Sold is $400,000 for the year, the cash paid to Early Years' suppliers for inventory is:
A) $353,000.
B) $370,000.
C) $387,000.
D) $447,000.
15) Under the direct method of preparing the statement of cash flows, which statement is
CORRECT
regarding the calculation of computing cash collected from interest revenue?
A) Sales plus a decrease in interest receivable
B) Interest revenue plus a decrease in interest receivable
C) Interest revenue plus an increase in interest receivable
D) Interest revenue less a decrease in interest receivable
16) During the year, Crapitto Engineering Corporation has operating expenses of $50,000. There was an increase in prepaid expenses of $5,000 and an increase in accrued liabilities of $7,000. What were Crapitto's cash payments for operating expenses?
A) $43,000
B) $48,000
C) $55,000
D) $57,000
17) The direct method of preparing the statement of cash flows is preferred by the Financial Accounting Standards Board primarily because of the way it reports:
A) operating activities.
B) investing activities.
C) financing activities.
D) noncash activities.
18) Which of the following would NOT be reported in the operating activities section of a statement of cash flows using the direct method?
A) Cash paid for income taxes
B) Interest received on notes receivable
C) Loss on sale of equipment
D) Payments to suppliers
19) Newsome Corporation had accounts receivable of $110,000 at the beginning of the year and $125,000 at the end of the year. Sales for the year amounted to $575,000. Cash collections from customers are:
A) $15,000.
B) $465,000.
C) $560,000.
D) $575,000.
20) Newton Corporation reported an increase in inventory of $75,000. The cost of goods sold for the year was $180,000. There was also a $7,000 decrease in accounts payable from the beginning of the year to the end of the year. What is Newton's cash payment to suppliers for inventory?
A) $187,000
B) $248,000
C) $255,000
D) $262,000