1) Holly Company's accounts receivable increased during the year by $9 7 million It had a bad debt expense of $2 8 million, and its allowance for uncollectible accounts increased by $1 3 million What is the amount of cash received from customers if Holly's sales were $52 6 million $41 4 $66 4 $63 6 $38 8 $58 2 2) A company reported that its bonds with a par value of $41,000 and a carrying value of $58,000 are retired for $62,000 cash, resulting in a loss of $4,000 The amount to be reported under cash flows from financing activities is Zero This is an investing activity $(4,000) $(62,000) $(58,000) Zero This is an operating activity 3) Selected information from Doodle Company's for 2010 is below (in millions) Inventory decreased $6 4 Accounts Payable increased by $7 4 Cost of goods sold $36 90 Salaries Expense $24 8 Salaries Payable decreased $6 4 Accounts Receivable increased by $10 4 Sales $57 2 What is the amount of cash paid for salaries by Doodle during 2010 $4 8 $6 4 $24 8 $31 2 $18 4 4) Use the following information and the indirect method to calculate the net cash provided or used by operating activities Net income $12,400 Depreciation expense 11,800 Payment on mortgage payable 14,000 Gain on sale of land 7,700 Increase in merchandise inventory 2,300 Increase in accounts payable 6,100 Proceeds from sale of land 8,800 $20,300 $11,500 $40,300 $34,300 $8,100 5) 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 $13,000 Decrease in interest payable 5,000 Depreciation expense 30,900 Gain on retirement of bonds 32,600 Increase in accounts receivable 40,500 Loss on sale of plant assets 5,200 Net Income 71,000 $48,200 $42,000 $16,000 $83,800 $29,000 6) Use the following information about the current year's operations of a company to calculate the cash paid for merchandise Cost of good sold $540,000 Merchandise inventory, January 1 65,300 Merchandise inventory, December 31 57,200 Accounts payable, January 1 65,200 Accounts payable, December 31 58,600 $548,100 $531,900 $540,000 $525,300 $538,500 7) Selected information from Doodle Company's for 2010 is below (in millions) Inventory decreased $7 0 Accounts Payable increased by $8 0 Cost of goods sold $37 50 Salaries Expense $26 0 Salaries Payable decreased $7 0 Accounts Receivable increased by $11 0 Sales $58 4 What is the amount of cash received from Doodle's customers during 2010 $69 4 $11 0 $47 4 $20 9 $58 4 8) A company had total assets of $1,770,000, total cash flows of $1,320,000, and cash flows from operations of $232,000 This implies its cash flow on total assets ratio equals(rounded) 7 63 17 58 13 11 74 58 13 41 9) Wilma Corporation prepares its statement of cash flows using the indirect method to report operating activities Net income for the 2011 fiscal year was $628,000 Depreciation and amortization expense of $54,000 and 24,000 respectively were included with operating expenses in the income statement The following information describes the changes in current assets and liabilities other than cash Decrease in accounts receivable $16,000 Increase in inventories 8,800 Increase prepaid expenses 8,300 Increase in salaries payable 9,800 Decrease in income taxes payable 13,800 Determine the net cash flow provided (used) by operating activities ($680,500) $680,500 $700,900 ($547,100) ($700,900) 10)A company's cash flow on total assets ratio equals 20 If average total assets equal $3,600,000 and total cash flows equal $610,000, what is the amount of cash flows from operations $720,000 $4,210,000 $610,000 $122,000 $1,800 11) Walker Company reports net income of $413,000 for the year ended December 31, 2010 It also reports $74,900 depreciation expense and a gain of $10,300 on the sale of machinery Its comparative balance sheets reveal a $32,900 decrease in accounts receivable, $16,520 increase in accounts payable, $8,540 decrease in prepaid expenses, and $12,320 increase in wages payable What is the net cash flows provided (used) by operating activities using the indirect method ($547,880) $295,200 $551,400 ($295,200) $547,880

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1) Holly Company's accounts receivable increased during the year by $9.7 million. It had a bad debt expense of $2.8 million, and its allowance for

1) Holly Company's accounts receivable increased during the year by $9.7 million. It had a bad debt expense of $2.8 million, and its allowance for uncollectible accounts increased by $1.3 million. What is the amount of cash received from customers if Holly's sales were $52.6 million?

$41.4

$66.4

$63.6

$38.8

$58.2

2) A company reported that its bonds with a par value of $41,000 and a carrying value of $58,000 are retired for $62,000 cash, resulting in a loss of $4,000. The amount to be reported under cash flows from financing activities is:

Zero. This is an investing activity.

$(4,000).

$(62,000).

$(58,000).

Zero. This is an operating activity.

3) Selected information from Doodle Company's for 2010 is below (in millions):

Inventory decreased $6.4	Accounts Payable increased by $7.4
Cost of goods sold $36.90	Salaries Expense $24.8
Salaries Payable decreased $6.4	Accounts Receivable increased by $10.4
Sales $57.2

What is the amount of cash paid for salaries by Doodle during 2010?

$4.8

$6.4

$24.8

$31.2

$18.4

4) Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

Net income	$12,400
Depreciation expense	11,800
Payment on mortgage payable	14,000
Gain on sale of land	7,700
Increase in merchandise inventory	2,300
Increase in accounts payable	6,100
Proceeds from sale of land	8,800

$20,300.

$11,500.

$40,300.

$34,300.

$8,100.

5) 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	$13,000
Decrease in interest payable	5,000
Depreciation expense	30,900
Gain on retirement of bonds	32,600
Increase in accounts receivable	40,500
Loss on sale of plant assets	5,200
Net Income	71,000

$48,200.

$42,000.

$16,000.

$83,800.

$29,000.

6) Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.

Cost of good sold	$540,000
Merchandise inventory, January 1	65,300
Merchandise inventory, December 31	57,200
Accounts payable, January 1	65,200
Accounts payable, December 31	58,600

$548,100

$531,900

$540,000

$525,300

$538,500

7) Selected information from Doodle Company's for 2010 is below (in millions):

Inventory decreased $7.0	Accounts Payable increased by $8.0
Cost of goods sold $37.50	Salaries Expense $26.0
Salaries Payable decreased $7.0	Accounts Receivable increased by $11.0
Sales $58.4

What is the amount of cash received from Doodle's customers during 2010?

$69.4

$11.0

$47.4

$20.9

$58.4

8) A company had total assets of $1,770,000, total cash flows of $1,320,000, and cash flows from operations of $232,000. This implies its cash flow on total assets ratio equals(rounded):

7.63%.

17.58%.

13.11%.

74.58%.

13.41%. 9) Wilma Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2011 fiscal year was $628,000. Depreciation and amortization expense of $54,000 and 24,000 respectively were included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash:


Decrease in accounts receivable	$16,000
Increase in inventories	8,800
Increase prepaid expenses	8,300
Increase in salaries payable	9,800
Decrease in income taxes payable	13,800

Determine the net cash flow provided (used) by operating activities.

($680,500)

$680,500

$700,900

($547,100)

($700,900)

10)A company's cash flow on total assets ratio equals 20%. If average total assets equal $3,600,000 and total cash flows equal $610,000, what is the amount of cash flows from operations?

$720,000.

$4,210,000.

$610,000.

$122,000.

$1,800.

11) Walker Company reports net income of $413,000 for the year ended December 31, 2010. It also reports $74,900 depreciation expense and a gain of $10,300 on the sale of machinery. Its comparative balance sheets reveal a $32,900 decrease in accounts receivable, $16,520 increase in accounts payable, $8,540 decrease in prepaid expenses, and $12,320 increase in wages payable. What is the net cash flows provided (used) by operating activities using the indirect method?