76. Grande Company was started on January 1, 2011, when it acquired $6,000 cash by issuing common stock. During 2011, the company earned cash revenues of $2,500, paid cash expenses of $1,750, and paid a cash dividend of $400. Based on this information,
A. The December 31, 2011 balance sheet would show total equity of $8,500.
B. The 2011 income statement would show net income of $350.
C. The 2011 statement of cash flows would show net cash inflow from operating activities of $750.
D. The 2011 statement of cash flows would show a net cash flow from financing activities of $6,000.
77. Rosen Company paid $800 cash for salary expense. As a result of this business event,
A. Total assets were not affected.
B. Liabilities increased.
C. Total equity was not affected.
D. The net cash flow from operating activities decreased.
78. Min Company paid $30,000 cash to purchase a truck. As a result of this business event,
A. Total equity decreased.
B. The net cash flow from operating activities decreased.
C. Total assets were not affected.
D. Net income decreased.
El Paso Company engaged in the following transactions during 2010, its first year in operation:
(Assume all transactions are cash transactions)
1. Acquired $3,000 cash from issuing common stock.
2. Borrowed $2,200 from a bank.
3. Earned $3,100 of revenues.
4. Incurred $2,400 in expenses.
5. Paid dividends of $500.
El Paso Company engaged in the following transactions during 2011:
1. Acquired an additional $500 cash from the issue of common stock.
2. Repaid $1,300 of its debt to the bank.
3. Earned revenues, $4,500.
4. Incurred expenses of $2,750.
5. Paid dividends of $740.
79. The net cash flow from financing activities on El Paso's 2010 statement of cash flows was
A. $2,500.
B. $4,700.
C. $1,700.
D. $5,200.
80. The amount of total assets on El Paso's 2010 balance sheet was
A. $5,900.
B. $5,400.
C. $700.
D. $3,700.
81. The amount of retained earnings on El Paso's 2010 balance sheet was
A. $3,200.
B. $2,500.
C. $200.
D. $700.
82. The amount of liabilities on El Gato's 2011 balance sheet was
A. $900.
B. $500.
C. $1,300.
D. $240.
83. As of December 31, 2010, Melrose Company had $500 cash. During 2011, Melrose earned $1,200 of cash revenue and paid $800 of cash expenses. The amount of cash shown on the 2011 balance sheet would be
A. $400.
B. $900.
C. $1,200.
D. $2,500.
84. Expenses are shown on the
A. statement of cash flows.
B. income statement.
C. statement of changes in stockholders' equity.
D. both b and c.
85. Dividends paid by a company are shown on the
A. income statement.
B. statement of changes in stockholders' equity.
C. statement of cash flows.
D. both b and c.