1. A machine with a cost of $150,000, accumulated depreciation of $95,000, and current year depreciation expense of $22,000 is sold for $48,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

Multiple Choice

$47,000.

$7,000.

$22,000.

$25,000.

$48,000.

2. In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:

Net income for the year was	$	58,000
Accounts payable increased by		18,600
Accounts receivable decreased by		25,600
Inventories increased by		6,200
Depreciation expense was		31,800

Net cash provided by operating activities was:

Multiple Choice

$127,800.

$64,200.

$76,600.

$89,000.

$140,200.

3. Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 common size percentages for cost of goods sold using Net sales as the base.

	2017			2016
Net sales	$	423,800		$	346,600
Cost of goods sold		192,400			133,100
Operating expenses		70,090			67,550
Net earnings		35,380			25,130

Multiple Choice

45.4% for 2017 and 38.4% for 2016.

161.4% for 2017 and 172.7% for 2016.

8.3% for 2017 and 7.2% for 2016.

61.9% for 2017 and 57.9% for 2016.

122.3% for 2017 and 100.0% for 2016.

4. Carducci Corporation reported Net sales of $3.46 million and beginning Total assets of $1.04 million and ending Total assets of $1.44 million. The average Total asset amount is:

Multiple Choice

$2.02 million.

$2.42 million.

$0.30 million.

$0.35 million.

$1.24 million.

5. Refer to the following selected financial information from Shakley's Incorporated. Compute the company's debt-to-equity ratio for Year 2.

	Year 2		Year 1
Net sales		$ 482,000		$ 426,950
Cost of goods sold		277,000		250,820
Interest expense		10,400		11,400
Net income before tax		67,950		53,380
Net income after tax		46,750		40,600
Total assets		318,500		292,200
Total liabilities		177,900		168,000
Total equity		140,600		124,200

Multiple Choice

0.79.

1.79.

2.27.

1.27.

3.43.

6. Zhang Company reported Cost of goods sold of $846,000, beginning Inventory of $39,400 and ending Inventory of $47,400. The average Inventory amount is:

Multiple Choice

$39,400.

$47,400.

$86,800.

$43,400.

$8,000.

7. Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for net sales using 2016 as the base.

	2017			2016
Net sales	$	277,700		$	231,700
Cost of goods sold		151,600			129,890
Operating expenses		54,940			52,940
Net earnings		28,320			20,120

Multiple Choice

65.6% for 2017 and 64.6% for 2016.

119.9% for 2017 and 100.0% for 2016.

36.2% for 2017 and 40.8% for 2016.

116.7% for 2017 and 100.0% for 2016.

54.6% for 2017 and 56.1% for 2016.