1. Mullinix Inc. reported the following information: net income, $55,000; decrease in accounts receivable, $12,000; decrease in accounts payable, $6,500; and depreciation expense, $10,000. What amount did Mullinix report as cash flow from operating activities on its statement of cash flows?
a. $50,500
b. $59,500
c. $70,500
d. $83,500
2. Refer to the information for Cornett Company above. What amount should Cornett report on its statement of cash flows as net cash flows provided by investing activities?
Refer to Cornett Company,
Cornett Company reported the following information: cash received from the issuance of common stock, $150,000; cash received from the sale of equipment, $14,800; cash paid to purchase an investment, $20,000; cash paid to retire a note payable, $50,000; and cash collected from sales to customers, $225,000.
a. $(5,200)
b. $55,200
c. $144,800
d. None of these
3. Refer to the information for Cornett Company above. What amount should Cornett report on its statement of cash flows as net cash flows from financing activities?
Refer to Cornett Company,
Cornett Company reported the following information: cash received from the issuance of common stock, $150,000; cash received from the sale of equipment, $14,800; cash paid to purchase an investment, $20,000; cash paid to retire a note payable, $50,000; and cash collected from sales to customers, $225,000.
a. $65,200
b. $94,800
c. $100,000
d. None of these
4. Romo Inc. reported the following information for the current year: operating expenses, $325,000; increase in prepaid expenses, $6,200; and decrease in accrued liabilities, $8,800. What is the amount of cash paid for operating expenses that Romo would report on its statement of cash flows under the direct method?
a. $310,000
b. $322,400
c. $327,600
d. $340,000