91. A company's income statement showed the following: net income, $124,000; depreciation expense, $30,000, and gain on sale of plant assets, $14,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses decreased $6,200; accounts payable increased $3,400. Calculate the net cash provided or used by operating activities.
A. $139,000
B. $141,000
C. $145,800
D. $155,000
E. $167,000
92. Use the following information and the indirect method to calculate the net cash provided or used by operating activities:
Net income
|
$12,300
|
Depreciation expense
|
12,000
|
Payment on mortgage payable
|
15,000
|
Gain on sale of land
|
7,500
|
Increase in merchandise inventory
|
2,050
|
Increase in accounts payable
|
6,150
|
Proceeds from sale of land
|
8,000
|
A. $12,700
B. $13,900
C. $20,900
D. $28,400
E. $35,900
93. Use the following information and the indirect method to calculate the net cash provided or used by operating activities:
Cash paid for purchase of plant assets
|
$15,000
|
Decrease in interest payable
|
2,000
|
Depreciation expense
|
30,000
|
Gain on retirement of bonds
|
32,000
|
Increase in accounts receivable
|
40,000
|
Loss on sale of plant assets
|
5,000
|
Net Income
|
76,000
|
A. $22,000
B. $117,000
C. $69,000
D. $37,000
E. $91,000
94. A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:
A. $50,000.
B. $5,000.
C. $45,000.
D. Zero. This is an operating activity.
E. Zero. This is a financing activity.
95. A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash, resulting in a loss of $3,000. The amount to be reported under cash flows from financing activities is:
A. $3,000 outflow.
B. $60,000 outflow.
C. $57,000 outflow.
D. Zero. This is an operating activity.
E. Zero. This is an investing activity.
96. Which of the following items is reported on the statement of cash flows under financing activities?
A. Declaration of a cash dividend.
B. Payment of a cash dividend.
C. Declaration of a stock dividend.
D. Payment of a stock dividend.
E. Stock split.
97. Under IFRS, cash outflows for interest expense are classified as
A. Operating.
B. Investing.
C. Financing.
D. Operating or investing, assuming that the classification is applied consistently across all periods.
E. Investing or financing, depending upon who is the recipient of the interest paid.
98. Given the following information, determine the amount of cash flows from investing and financing activities.
Net income
|
$50,000
|
Loss on sale of plant assets
|
15,000
|
Cash received from sale of plant assets
|
26,000
|
Cash received from issuing stock
|
70,000
|
Increase in income taxes payable
|
120,000
|
A.
Cash provided by investing activities, $11,000
|
Cash provided by financing activities, $70,000
|
B.
Cash used by investing activities, $11,000
|
Cash used by financing activities, $70,000
|
C.
Cash provided by investing activities, $26,000
|
Cash provided by financing activities, $55,000
|
D.
Cash used by investing activities, $26,000
|
Cash used by financing activities, $55,000
|
E.
Cash provided by investing activities, $26,000
|
Cash provided by financing activities, $70,000
|
99. Given the following information, determine the amount of cash flows from investing and financing activities.
Net income
|
$70,000
|
Loss on sale of plant assets
|
25,000
|
Cash received from sale of plant assets
|
36,000
|
Cash received from issuing stock
|
80,000
|
Increase in income taxes payable
|
20,000
|
A.
Cash provided by investing activities, $11,000
|
Cash provided by financing activities, $80,000
|
B.
Cash used by investing activities, $80,000
|
Cash used by financing activities, $11,000
|
C.
Cash provided by investing activities, $80,000
|
Cash provided by financing activities, $36,000
|
D.
Cash used by investing activities, $25,000
|
Cash used by financing activities, $36,000
|
E.
Cash provided by investing activities, $36,000
|
Cash provided by financing activities, $80,000
|
100. The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:
A. Cash.
B. Cash received from customers.
C. Increase (decrease) in accounts receivable.
D. Net income.
E. Adjustments to net income.