21) Einstein Corporation reported a decrease in inventory of $15,000. The cost of goods sold for the year was $180,000. There was also a $5,000 decrease in accounts payable from the beginning of the year to the end of the year. What is Einstein's cash payment to suppliers for inventory?
A) $158,000
B) $170,000
C) $188,000
D) $202,000
22) Jerome Smith, Inc. began the year with $279,000 in Accounts Receivable and ended the year with $232,700 in Accounts Receivable. Sales for the year were $3,870,000. The cash collected from customers during the year amounted to:
A) $3,823,700.
B) $3,916,300.
C) $4,102,700.
D) $4,149,000.
23) Income Tax Expense for 2016 is $43,000. Income Tax Payable increased $5,000 during the year. Interest Payable increased $7,000 during the year. What is the cash paid for income taxes?
A) $38,000
B) $43,000
C) $48,000
D) $50,000
24) Interest Expense for 2016 is $300,000. Interest Payable increased $50,000 during the year. Interest Receivable increased $10,000 during the year. Interest Expense includes $50,000 for the amortization of discount. What is the cash paid for interest?
A) $200,000
B) $250,000
C) $300,000
D) $350,000
25) Interest Revenue for 2015 is $100,000. Interest Payable increased $40,000 during the year and Interest Receivable increased $50,000 during the year. No discount or premium was amortized. What is the cash received for interest revenue?
A) $50,000
B) $60,000
C) $100,000
D) $150,000
26) Under the direct method of preparing the statement of cash flows, the computation of payments to suppliers includes:
A) payments for inventory only.
B) payments for operating expenses only.
C) payments for inventory and operating expenses.
D) payments for inventory, operating expenses, interest expense and income taxes.
27) Free cash flow equals:
A) net cash provided by investing activities minus cash payments for investments in plant assets.
B) net cash provided by financing activities minus cash payments for investments in plant assets.
C) net cash provided by operating activities minus cash payments for investments in plant assets.
D) net change in cash minus cash payments for investments in plant assets.
28) Net cash provided by operating activities is $2.3 million. Planned capital expenditures are $2 million. Depreciation expense is $1 million per year. What is free cash flow?
A) ($700,000)
B) $300,000
C) $1,000,000
D) $1,300,000
29) A company purchased a parcel of land using a long-term note payable. Using the direct method, where is this transaction reported on the statement of cash flows?
A) operating activities
B) investing activities
C) financing activities
D) noncash investing and financing activities