1.

During the quarter ended 3/31/2015, Clarke Biscuits Inc. collected $100 of cash from customers, paid $60 of cash to suppliers, paid $20 of cash to employees and other creditors, and recorded $10 of depreciation expense. There were no other cash flows related to operating activities.

What was Clarkes Cash Flow from Operations during the quarter ended 3/31/2015?

$(20)

$10

$20

$30

$100

1 point 2.

During 2015, Rindal Vinyards Inc. had EBITDA of $1000, Depreciation and Amortization Expense of $200, Interest Expense of $100, and Tax Expense of $50. What was Rindal Vinyards Net Income in 2015?

$1250

$950

$1000

$650

$750

1 point 3.

Geller Florist Inc. had the following transactions during 2015:

Purchased a $200,000 warehouse with $50,000 cash and a $150,000 mortgage from a bank.

Raised $100,000 from selling new shares of stock to investors. The cash was used to buy land to grow tulips.

Sold an old building for $50,000 (and suffered a loss on sale of $5,000) and used the cash to buy a new truck.

What is the net impact of these transactions on Geller's Cash from Investing Activities during 2015?

$(50,000)

$(150,000)

$(295,000)

$(145,000)

$(300,000)

1 point 4.

Stewart Export Co. had the following Statement of Cash Flows for the year ended 03/31/15:

($ millions)	Year ended 3/13/15
Net Income	1100
Depreciation	200
Gain on sale of equipment	(400)
Chg in Accounts Receivable	350
Chg in Inventory	(200)
Chg in Other Current Assets	100
Chg in Accounts Payable	(50)
Net Cash from Operations	1250
Capital Expenditures	(1200)
Sale of Equipment	700
Net Cash from Investing	(500)

What was the book value of the equipment Stewart sold during the year ended 03/31/15?

$300

$500

$1,100

$700

$900

1 point 5.

Little Scuba Pty had the following line item on its 12/31/2014 Balance Sheet:

12/31/2014
Inventory	$20,000

Little Scubas Statement of Cash Flows had the following line item:

2014
Change in Inventory	$6,000

Assume that the company made no acquisitions or divestitures and that all operations are in Australia. How much Inventory did Little Scuba have on12/31/2013?

$26,000

$0

$6,000

$14,000

$20,000

1 point 6.

A new accountant, Costa Goodsold, put together a preliminary version of Medina Co.'s financial statements. Medina's Net Income was $500, its Depreciation Expense was $100, and its Cash Flow from Operations was $70. The CEO found an error that Costa made in computing straight-line Depreciation Expense, which should have been $50. What is Medina's Cash Flow from Operations after fixing this mistake? (you can ignore taxes)

$70

$20

$120

$170

$450

1 point 7.

Joe Doakes was reading the balance sheet of Gogoldze Inc. when he spilled coffee on it. After the coffee spill, the balance sheet looked like this:

($ millions)	12/31/2015
Cash	100
Accounts Receivable	245
Inventory	450
Other Current Assets	60
Current Assets	855
Net Property, Plant, & Equipment	1,160
Total Assets	2,015
Accounts Payable	160
Other Current Liabilities	250
Current Liabilities	410
Long-term Liabilities	900
Common Stock	50
Additional Paid-in Capital	300
Retained Earnings	coffee
Total Liabilities and SE	coffee

What was Gogoldze Inc.'s Retained Earnings at 12/31/2015?

$550

$355

($55)

$3,675

$960

1 point 8.

Alejandro Alvera of Alvear Corp was reading the financial statements of Olivas Medical Supply Company to decide whether he wanted to try to acquire the company. He noticed some mistakes in the Olivas Income Statement:

($ millions)	Year ended 12/31/2015
Sales revenue	$1600
Interest Revenue	50
Total Revenue	1650
Cost of Goods Sold	(800)
Gross Profit	850
SG&A Expense	(400)
Interest Expense	(50)
Operating Income	400
Gain on sale of equipment	200
Pre-tax income	600
Income Tax Expense	(216)
Net Income	384

What is Olivas' Operating Income for the year ended 12/31/2015 after correcting the mistakes?

$400

$600

$550

$350

$450