136.Mercury Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $150,000 was sold for its book value in Year 2. The following selected information is available for Mercury Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.
At December 31Year 2Year 1
Equipment$610,000$750,000
Accumulated Depreciation-Equipment428,000500,000
A. $32,000.
B. $68,000.
C. $38,000.
D. $40,000.
E. $36,000.
137.Jamison Company reports depreciation expense of $35,000 for Year 2. Also, equipment costing $140,000 was sold for a $5,000 gain in Year 2. The following selected information is available for Jamison Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.
At December 31Year 2Year 1
Equipment$610,000$750,000
Accumulated Depreciation-Equipment428,000500,000
A. $23,000.
B. $35,000.
C. $38,000.
D. $40,000.
E. $67,000.
138.Jeffreys Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $240,000 was sold for a $10,000 loss in Year 2. The following selected information is available for Jeffreys Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.
At December 31Year 2Year 1
Equipment$510,000,000$750,000
Accumulated Depreciation-Equipment328,000500,000
A. $62,000.
B. $38,000.
C. $28,000.
D. $18,000.
E. $58,000.
139.Bagwell's net income for the year ended December 31, Year 2 was $185,000. 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 31Year 2Year 1
Common Stock, $5 par value$500,000$450,000
Paid-in capital in excess of par948,000853,000
Retained earnings688,000582,000
A. $185,000.
B. $106,000.
C. $95,000.
D. $50,000.
E. $145,000.
140.Bagwell's net income for the year ended December 31, Year 2 was $175,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash paid for dividends during Year 2.
At December 31Year 2Year 1
Common Stock, $5 par value$500,000$450,000
Paid-in capital in excess of par948,000853,000
Retained earnings688,000582,000
A. $79,000.
B. $201,000.
C. $95,000.
D. $50,000.
E. $69,000.
141.Scranton, Inc. reports net income of $230,000 for the year ended December 31. It also reports $87,700 depreciation expense and a $5,000 gain on the sale of equipment. Its comparative balance sheet reveals a $35,500 decrease in accounts receivable, a $15,750 increase in accounts payable, and a $12,500 decrease in wages payable. Calculate the cash provided (used) in operating activities using the indirect method.
A. $376,450.
B. $351,450.
C. $356,450.
D. $319,950.
E. $263,750.
142.Alvez Company reports net income of $305,000 for the year ended December 31. It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment. Its comparative balance sheet reveals a $40,200 increase in accounts receivable, a $10,200 decrease in prepaid expenses, a $15,200 increase in accounts payable, a $12,500 decrease in wages payable, and a $100,000 decrease in notes payable. Calculate the cash provided (used) in operating activities using the indirect method.
A. $461,800.
B. $371,400.
C. $381,400.
D. $351,000.
E. $361,000.
143.Alvez reports net income of $305,000 for the year ended December 31. It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment. Its comparative balance sheet reveals a $40,200 increase in accounts receivable, a $10,200 decrease in prepaid expenses, a $15,200 increase in accounts payable, a $12,500 decrease in wages payable, a $75,000 increase in equipment, and a $100,000 decrease in notes payable. Calculate the net increase in cash for the year.
A. $216,400.
B. $281,400.
C. $381,400.
D. $206,400.
E. $406,400.
144.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$233,000
Cash dividends declared for the year$50,000
Proceeds from the sale of equipment$85,000
Gain on the sale of equipment$4,500
Cash dividends payable at the beginning of the year$22,000
Cash dividends payable at the end of the year$30,000
Net income for the year$110,000
The ending balance in retained earnings is:
A. $343,000.
B. $213,000.
C. $293,000.
D. $297,500.
E. $301,000.
145.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$233,000
Cash dividends declared for the year$50,000
Proceeds from the sale of equipment$85,000
Gain on the sale of equipment$4,500
Cash dividends payable at the beginning of the year$22,000
Cash dividends payable at the end of the year$30,000
Net income for the year$110,000
The amount of cash paid for dividends was:
A. $52,000.
B. $60,000.
C. $58,000.
D. $50,000.
E. $42,000.