51) Cash collected from customers can be computed by the following formula:
A) ending accounts receivable plus beginning accounts receivable minus sales
B) ending accounts receivable minus beginning accounts receivable plus sales
C) beginning accounts receivable minus ending accounts receivable plus sales
D) beginning accounts receivable minus ending accounts receivable minus sales
52) Fertilizer Incorporated reports an increase in Accounts Payable of $9,200 and an increase in inventory of $45,000 for the current year. Accounts Payable relates solely to the purchase of merchandise. Sales on account were $532,100 and cost of goods sold was $358,000. The payments to suppliers for inventory during the period were:
A) $393,800
B) $322,200
C) $412,200
D) $303,800
53) Given the following information for Rat Rack Corporation: cost of goods sold $35,500, sales $65,000, increase in accounts receivables $4,200. Their receipts from customers total would be:
A) $60,800
B) $69,200
C) $33,700
D) $25,300
54) In 2010, Nutrient Company reported sales of $725,000 and cost of goods sold of $480,000. During 2010, Nutrient's Inventory account increased $25,000 and its Accounts Payable account (which relates solely to the purchase of merchandise) decreased $18,000. Nutrient Company's payments to suppliers for inventory during 2010 were:
A) $437,000
B) $523,000
C) $487,000
D) $473,000
55) Geographic Enterprise's Inventory account decreased $37,500 and its Accounts Payable account (which relates solely to the purchase of merchandise) decreased $13,760 during the year. Geographic also reported sales of $856,000 and cost of goods sold of $597,600 during the same period. Geographic's payments to suppliers for inventory during the year were:
A) $621,340
B) $573,860
C) $805,740
D) $648,860
56) Salary Expense on the income statement was $264,780 for the year ended December 31, 2010. The Salary Payable account decreased $24,370 during the same period. The amount of cash payments to employees for the year ended December 31, 2010, is:
A) $289,150
B) $264,780
C) $240,410
D) indeterminable from the information given
57) The amounts in the Salaries Payable account for Ammonia Company were $14,500 and $16,000 on December 31, 2010, and December 31, 2011, respectively. Cash paid to employees for the years ended December 31, 2010, and December 31, 2011, were $255,000 and $280,000, respectively. Ammonia Company's Salary Expense for the year ended December 31, 2011, was:
A) $253,500
B) $281,500
C) $278,500
D) $256,500
58) Nitrogen Company reported Insurance Expense for the year ended December 31, 2010, of $37,490. During the same period, the Prepaid Insurance account decreased $4,610. The payments for insurance during the year ended December 31, 2010, were:
A) $32,880
B) $37,490
C) $42,100
D) $46,710
59) On January 1, 2010, Prepaid Insurance had a balance of $6,700 and on December 31, 2010, a balance of $8,320. The income statement for the year reported Insurance Expense of $49,310. Payments for insurance during the year amounted to:
A) $49,310
B) $47,690
C) $50,930
D) $57,630
60) All of the following would appear on a direct method cash flow statement
except:
A) cash payments for interest and taxes
B) cash purchase of equipment
C) cash receipts from customers
D) net income