1 - The net income reported on the income statement for the current year was $265,341. Depreciation recorded on fixed assets and amortization of patents for the year were $30,833 and $8,820, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:

	End	Beginning
Cash	$48,000	$64,813
Accounts Receivable	126,113	101,866
Inventories	110,568	94,346
Prepaid Expenses	3,942	7,032
Accounts Payable (merchandise creditors)	52,879	70,573

What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

a.$264,525

b.$333,803

c.$249,921

d.$258,762

2-

Accounts receivable from sales transactions were $49,362 at the beginning of the year and $61,553 at the end of the year. Net income reported on the income statement for the year was $146,020. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method would be

a.$12,191

b.$158,211

c.$146,020

d.$133,829

3-

The following information is available from the current period financial statements:

Net income	$111,150
Depreciation expense	24,416
Increase in accounts receivable	16,353
Decrease in accounts payable	29,532

The net cash flow from operating activities using the indirect method is

a.$89,681

b.$40,849

c.$181,451

d.$111,150

4-

A building with a book value of $37,864 is sold for $58,191 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as an increase of

a.$37,864 from investing activities and an addition to net income of $20,327

b.$58,191 from investing activities

c.$37,864 from investing activities

d.$58,191 from investing activities and a deduction from net income of $20,327

5-

If a gain of $7,576 is realized in selling (for cash) office equipment having a book value of $55,503, the total amount reported in the Cash flows from investing activities section of the statement of cash flows is

a.$47,927

b.$7,576

c.$63,079

d.$55,503

6-

Land costing $131,983 was sold for $178,722 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

a.$131,983

b.$46,739

c.$178,722

d.$310,705

7-

Equipment with an original cost of $76,250 and accumulated depreciation of $20,927 was sold at a loss of $6,628. As a result of this transaction, cash would

a.decrease by $20,927

b.decrease by $6,628

c.increase by $76,250

d.increase by $48,695

8-

Cash dividends of $73,423 were declared during the year. Cash dividends payable were $9,099 at the beginning of the year and $15,494 at the end of the year. The amount of cash for the payment of dividends during the year is

a.$73,423

b.$67,028

c.$98,016

d.$82,522

9-

Land costing $78,900 was sold for $99,400 cash. The gain on the sale was reported on the income statement as other revenue. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

a.$20,500

b.$78,900

c.$178,300

d.$99,400

10-

The current period statement of cash flows includes the following:

Cash balance at the beginning of the period	$450,578
Net cash flow from operating activities	188,958
Net cash flow used for investing activities	53,433
Net cash flow used for financing activities	89,586

The cash balance at the end of the period is

a.$307,559

b.$496,517

c.$782,555

d.$549,950

11-

The net income reported on the income statement for the current year was $253,093. Depreciation recorded on fixed assets and amortization of patents for the year were $40,172 and $11,976, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:

	End	Beginning
Cash	$59,150	$37,346
Accounts Receivable	123,954	106,578
Inventories	100,277	84,121
Prepaid Expenses	4,885	8,110
Accounts Payable (merchandise creditors)	48,796	73,577

What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

a.$271,709

b.$232,757

c.$334,467

d.$250,153

12-

The following information is available from the current period financial statements:

Net income	$ 146,084
Depreciation expense	$37,273
Increase in accounts receivable	$15,347
Decrease in accounts payable	$25,115

The net cash flow from operating activities using the indirect method is

a.$142,895

b.$223,819

c.$93,464

d.$118,579

13-

Cash paid to purchase long-term investments would be reported on the statement of cash flows in

a.the Cash flows from investing activities section

b.the Cash flows from financing activities section

c.a separate schedule

d.the Cash flows from operating activities section

14-

Which of the following does not represent an outflow of cash and therefore would not be reported on the statement of cash flows as a use of cash?

a.purchase of noncurrent assets

b.payment of cash dividends

c.purchase of treasury stock

d.discarding an asset that had been fully depreciated

15-

On the statement of cash flows prepared by the indirect method, the Cash flows from operating activities section would include

a.payments for cash dividends

b.receipts from the issuance of capital stock

c.gains or losses on fixed assets

d.receipts from the sale of investments

16-

Assume the following sales data for a company:

	Current year	$773,499
	Preceding year	532,662

What is the percentage increase in sales from the preceding year to the current year (rounded to one decimal place)?

a.31.1%

b.45.2%

c.76.4%

d.14.1%

17-

Use the information below for Harding Company to answer the question that follow.

Harding Company
Accounts payable	$26,591
Accounts receivable	72,721
Accrued liabilities	6,537
Cash	19,293
Intangible assets	35,920
Inventory	85,984
Long-term investments	113,354
Long-term liabilities	72,343
Marketable securities	38,008
Notes payable (short-term)	20,719
Property, plant, and equipment	681,567
Prepaid expenses	1,860

Based on the data for Harding Company, what is the amount of quick assets?

a.$130,022

b.$824,852

c.$57,301

d.$1,655,693

18-

Which of the following is not a characteristic evaluated in ratio analysis?

a.profitability

b.solvency

c.liquidity

d.marketability

19-

Balance sheet and income statement data indicate the following:

Bonds payable, 10% (due in two years)	$1,000,000
Preferred 5% stock, $100 par (no change during year)	300,000
Common stock, $50 par (no change during year)	2,000,000
Income before income tax for year	550,000
Income tax for year	80,000
Common dividends paid	50,000
Preferred dividends paid	15,000

Based on the data presented, what is the times interest earned ratio? (Round to one decimal point.)

a.6.4

b.6.5

c.5.5

d.1.5

20-

What type of analysis is indicated by the following?

			Increase (Decrease)
	Current Year	Preceding Year	Amount	Percent
Current assets	$ 430,000	$ 500,000	$(70,000)	(14)%
Fixed assets	1,740,000	1,500,000	240,000	16

a.liquidity analysis

b.vertical analysis

c.common-size analysis

d.horizontal analysis