75.The Bell Corporation had a balance in its Equipment account on January 1, 2013 of $325,000. During the year, equipment originally costing $85,000 and having Accumulated Depreciation of $20,000 was sold for $67,000. The ending balance of the Equipment Account was $275,000. How much did the company spend to purchase additional equipment during 2013?
A. $20,000
B. $35,000
C. $85,000
D. $87,000
76.Garcia Company sold equipment for $50,000 cash. The equipment has cost $80,000 and had accumulated depreciation of $44,000 at the time of the sale. Based on this information alone, select the true statement.
A. Cash flow from investing activities would be less if the sale of equipment is reported on the statement of cash flows under the direct method than if it is reported under the indirect method.
B. Cash flow from investing activities would be greater if the sale of equipment is reported on the statement of cash flows under the direct method than if it is reported under the indirect method.
C. Cash flow from investing activities would be the same regardless of whether the sale of equipment is reported on the statement of cash flows under the direct method or the indirect method.
D. The answer cannot be determined because the amount of the salvage value is unknown.
77.Which of the following would not be presented in the financing section of the statement of cash flows?
A. Purchased a new office building.
B. Purchased treasury stock.
C. Repayment of long-term bonds payable.
D. Issuing of preferred stock.
78.Which of the following transactions would be disclosed on a schedule of noncash investing and financing activities?
A. A mortgage liability accepted in exchange for title to a building.
B. Writing off an uncollectible accounts receivable.
C. The issuance of bonds for cash.
D. A and B.
79.The statement of cash flows would not disclose the effects of:
A. a 2-for-1 stock split.
B. a sale of equipment.
C. a purchase and retirement of treasury stock.
D. cash dividends declared and paid.
80.Sterling Corporation has beginning and ending accounts payable balances of $400 and $800, respectively. Inventory had beginning and ending balances of $700 and $500, respectively. If cost of goods sold was $2,800, how much cash was spent to obtain inventory:
A. $2,000.
B. $2,400.
C. $2,600.
D. None of these.
81.Which of the following cash flows would be included in the operating activities section of the statement of cash flows? Assume use of the direct method.
A. Cash receipts from dividends.
B. Cash paid to purchase equipment.
C. Cash received from a bond issue.
D. Cash gains and losses from the sale of operational assets.
82.For the year ended December 31, 2013, Carr Company had cash collections from customers of $200,000, cash paid to employees of $32,000, cash paid to suppliers of $100,000, cash used to retire long-term bonds of $32,000, and cash payments for dividends of $20,000. Based on this information, the amount of cash provided by operating activities for 2013 is:
A. $48,000.
B. $168,000.
C. $68,000.
D. $100,000.
83.The Xie Company reported a beginning balance of $3,200 and an ending balance of $4,400 in its Unearned Revenue account for 2013. During the year, $16,000 of revenue (previously unearned) was recognized. Considering only this information, how much cash was received from customers?
A. $16,000
B. $16,400
C. $17,200
D. $18,000
84.The Laramie Corporation reported a beginning balance of $2,400 in its Prepaid Insurance account for 2013. During the year, Laramie paid a total of $32,000 to purchase insurance, and the Prepaid Insurance account had an ending balance of $3,200. What was the amount of insurance expense that Laramie reported for 2013?
A. $32,000
B. $32,200
C. $31,200
D. $29,600
85.The Lemmon Corporation reported a beginning balance of $1,200 in its Prepaid Insurance account for 2013. During the year, a total of $16,000 was recognized as Insurance Expense and the Prepaid Insurance account had an ending balance of $1,600. How much cash did Lemmon pay for insurance during 2013?
A. $17,200
B. $16,400
C. $16,000
D. $14,800
86.The Mendez Company rents out a portion of its office space to another company. At the beginning of 2013 the balance in the Unearned Rent Revenue account was $2,400. During 2013, Mendez recognized $13,600 of rent revenue. If the ending balance of Unearned Rent Revenue is $1,400, how much cash was received from the tenant for rent during 2013?
A. $12,600
B. $13,600
C. $14,600
D. $15,000
87.Boston Corporation reported a $7,200 balance in accounts receivable on January 1, 2013. During the year $49,600 of sales on account were made. If the ending balance of accounts receivable amounts to $25,000, what is the amount of cash received from customers?
A. $31,800
B. $25,000
C. $53,400
D. $67,400
88.Baltimore Company pays cash for all inventory purchases. The company had a beginning inventory of $8,500 and an ending inventory of $6,900. Their cost of goods sold amounted to $55,000. Based on this information, the amount of cash paid for inventory purchases was:
A. $56,600
B. $53,400
C. $55,000
D. $61,800