61. Chow Company earned $1,500 of cash revenue, paid $1,200 for cash expenses, and paid a $200 cash dividend to its owners. Which of the following statements is true?
A. The net cash inflow from operating activities was $100.
B. The net cash outflow for investing activities was $200.
C. The net cash inflow from operating activities was $300.
D. The net cash outflow for investing activities was $100.
62. Yi Company provided services to a customer for $5,500 cash. As a result of this event,
A. total assets increased and total equity decreased.
B. total assets were unchanged and cash flows from operating activities increased.
C. liabilities decreased and net income increased.
D. total assets increased and net income increased.
63. During 2016, Chico Company earned $1,950 of cash revenue, paid $1,600 of cash expenses, and paid a $150 cash dividend to its owners. Based on this information alone, which of the following is
not
correct?
A. Net income amounted to $350.
B. Total assets increased by $200.
C. Cash inflow from operating activities was $350.
D. Cash inflow from operating activities was $200.
64. Glavine Company repaid a bank loan with cash. The cash flow from this event should be shown on the horizontal statements model as
A. an operating activity that decreases cash, decreases equity, and decreases net income.
B. a financing activity that decreases cash and decreases liabilities.
C. a financing activity that decreases cash, decreases equity, and decreases net income.
D. an investing activity that decreases cash and decreases liabilities.
65. Retained Earnings at the beginning and ending of the accounting period was $300 and $800, respectively. If revenues were $1,100 and dividends paid to stockholders were $200, expenses for the period must have been
A. $500.
B. $400.
C. $900.
D. $700.
$300 + $1,100 – Expenses - $200 = $800
Expenses = $400
Use the following information to answer questions 66-68:
Yowell Company began operations on January 1, 2016. During 2016, the company engaged in the following cash transactions:
1) issued stock for $40,000
2) borrowed $25,000 from its bank
3) provided consulting services for $39,000
4) paid back $15,000 of the bank loan
5) paid rent expense for $9,000
6) purchased equipment costing $12,000
7) paid $3,000 dividends to stockholders
8) paid employees' salaries, $21,000
66. What is Yowell's net cash flow from operating activities?
A. Inflow of $6,000
B. Inflow of $9,000
C. Inflow of $18,000
D. Inflow of $30,000
67. What is Yowell's ending notes payable balance?
A. $0
B. $25,000
C. ($15,000)
D. $10,000
68. What is Yowell’s net income?
A. $9,000
B. $30,000
C. $18,000
D. $6,000
Use the following information to answer questions 69-74:
Packard Company engaged in the following transactions during 2015, its first year in operations:
(Assume all transactions are cash transactions.)
1) Acquired $950 cash from the issue of common stock.
2) Borrowed $420 from a bank.
3) Earned $650 of revenues.
4) Paid expenses of $250.
5) Paid a $50 dividend.
During 2016, Packard engaged in the following transactions:
(Assume all transactions are cash transactions.)
1) Issued an additional $325 of common stock.
2) Repaid $220 of its debt to the bank.
3) Earned revenues of $750.
4) Incurred expenses of $360.
5) Paid dividends of $100.
69. Packard Company's net cash flow from financing activities for
2016
is
A. $220 outflow
B. $320 outflow
C. $5 inflow
D. $225 inflow
70. The total in Packard's retained earnings account
beforeclosing in
2015
is
A. $400.
B.
$0.
C. $350.
D. $450.