B. Multiple Choice with Computation 1. Ribbon Company provided the following information during the current year: Dividend received 500,000 Dividend paid 1,000,000 Cash received from customers...


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B. Multiple Choice with Computation<br>1. Ribbon Company provided the following information during the current year:<br>Dividend received<br>500,000<br>Dividend paid<br>1,000,000<br>Cash received from customers<br>9,000,000<br>Proceeds from issuing share capital<br>1,500,000<br>Interest received<br>200,000<br>Proceeds from sale of long term investments<br>2,000,000<br>Cash paid to suppliers and employees<br>6,000,000<br>Interest paid on long term debt<br>400,000<br>Income taxes paid<br>300,000<br>Cash balance January 1<br>1,800,000<br>1a. What is the net cash provided by operating activities?<br>a. 3,000,000<br>b. 3,300,000<br>c. 2,700,000<br>d. 2,000,000<br>1b. What is the net cash provided by investing activities?<br>a. 2,500,000<br>b. 2,000,000<br>c. 2,200,000<br>d. -0-<br>133<br>1c.. What is the net cash provided by financing activities?<br>a. 1,500,000<br>b. 1,000,000<br>c. 500,000<br>d. -0-<br>1d. What is the cash balance on December 31?<br>a. 6,300,000<br>b. 5,500,000<br>c. 4,800,000<br>d. 7,300,000<br>2. On December 31, 2020, Kale Company had the following balances in the accounts<br>maintained at First Bank.<br>Checking account #101<br>1,750,000<br>Checking account #201<br>( 100,000)<br>Time deposit<br>250,000<br>Money market placement<br>1,000,000<br>90-day treasury bill, due February 28, 2021<br>500,000<br>180-day treasury bill, due March 15, 2021<br>800,000<br>The entity classified investments with original maturities of three months or less as cash<br>equivalents.<br>On December 31, 2020, what amount should be reported as cash and cash<br>equivalents?<br>a. 3,400,000<br>b. 2,000,000<br>c. 2,400,000<br>d. 3,200,000<br>

Extracted text: B. Multiple Choice with Computation 1. Ribbon Company provided the following information during the current year: Dividend received 500,000 Dividend paid 1,000,000 Cash received from customers 9,000,000 Proceeds from issuing share capital 1,500,000 Interest received 200,000 Proceeds from sale of long term investments 2,000,000 Cash paid to suppliers and employees 6,000,000 Interest paid on long term debt 400,000 Income taxes paid 300,000 Cash balance January 1 1,800,000 1a. What is the net cash provided by operating activities? a. 3,000,000 b. 3,300,000 c. 2,700,000 d. 2,000,000 1b. What is the net cash provided by investing activities? a. 2,500,000 b. 2,000,000 c. 2,200,000 d. -0- 133 1c.. What is the net cash provided by financing activities? a. 1,500,000 b. 1,000,000 c. 500,000 d. -0- 1d. What is the cash balance on December 31? a. 6,300,000 b. 5,500,000 c. 4,800,000 d. 7,300,000 2. On December 31, 2020, Kale Company had the following balances in the accounts maintained at First Bank. Checking account #101 1,750,000 Checking account #201 ( 100,000) Time deposit 250,000 Money market placement 1,000,000 90-day treasury bill, due February 28, 2021 500,000 180-day treasury bill, due March 15, 2021 800,000 The entity classified investments with original maturities of three months or less as cash equivalents. On December 31, 2020, what amount should be reported as cash and cash equivalents? a. 3,400,000 b. 2,000,000 c. 2,400,000 d. 3,200,000
3. Oakwood Company provided the following data for the year<br>Cash balance, beginning of year<br>1,300,000<br>Cash flow from financing activities<br>1,000,000<br>Cash flow from operating activities<br>400,000<br>Cash flow from investing activities<br>(1,500,000)<br>Total shareholders' equity, beginning of year<br>2,000,000<br>What is the cash balance at the end of current year?<br>a. 1,200,000<br>b. 1,600,000<br>c. 1,400,000<br>d. 1,700,000<br>4. Alpha Company had the following activities during the current year:<br>Acquired 2,000 shares as investment for P2,600,000<br>15 / 58<br>Sold an investment for P3,500,000 when the carrying amount<br>Acquired a P5,000,000, 4-year certificate of deposit from a bank. During the year,<br>interest of P375,000 was paid to Alpha.<br>Collected dividends of P120,000 on share investments.<br>134<br>In the statement of cash flows, what amount should be reported as net cash used in<br>investing activities?<br>a. 3,725,000<br>b. 3,805,000<br>c. 3,980,000<br>d. 4,100,000<br>5. Kollar Company provided the following data for the current year:<br>Purchase of real estate for cash<br>5,500,000<br>Cash was borrowed from bank to purchase real<br>5,500,000<br>estate<br>Sale of investment for cash<br>5,000,000<br>Dividend paid<br>6,000,000<br>Issuance of ordinary shares for cash<br>2,500,000<br>Purchase of patent for cash<br>1,250,000<br>Payment of bank loan<br>1,500,000<br>Issuance of bonds payable for cash<br>3,000,000<br>5a. What is the net cash provided by financing activities?<br>a. 5,000,000<br>b. 3,500,000<br>c. 4,500,000<br>d. 5,500,000<br>5b. What is the net cash used in investing activities?<br>• 6,750,000<br>b. 3,750,000<br>c. 1,750,000<br>d. 500,000<br>

Extracted text: 3. Oakwood Company provided the following data for the year Cash balance, beginning of year 1,300,000 Cash flow from financing activities 1,000,000 Cash flow from operating activities 400,000 Cash flow from investing activities (1,500,000) Total shareholders' equity, beginning of year 2,000,000 What is the cash balance at the end of current year? a. 1,200,000 b. 1,600,000 c. 1,400,000 d. 1,700,000 4. Alpha Company had the following activities during the current year: Acquired 2,000 shares as investment for P2,600,000 15 / 58 Sold an investment for P3,500,000 when the carrying amount Acquired a P5,000,000, 4-year certificate of deposit from a bank. During the year, interest of P375,000 was paid to Alpha. Collected dividends of P120,000 on share investments. 134 In the statement of cash flows, what amount should be reported as net cash used in investing activities? a. 3,725,000 b. 3,805,000 c. 3,980,000 d. 4,100,000 5. Kollar Company provided the following data for the current year: Purchase of real estate for cash 5,500,000 Cash was borrowed from bank to purchase real 5,500,000 estate Sale of investment for cash 5,000,000 Dividend paid 6,000,000 Issuance of ordinary shares for cash 2,500,000 Purchase of patent for cash 1,250,000 Payment of bank loan 1,500,000 Issuance of bonds payable for cash 3,000,000 5a. What is the net cash provided by financing activities? a. 5,000,000 b. 3,500,000 c. 4,500,000 d. 5,500,000 5b. What is the net cash used in investing activities? • 6,750,000 b. 3,750,000 c. 1,750,000 d. 500,000
Jun 11, 2022
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