1.

The net income reported on the income statement for the current year was $1414000. Depreciation recorded on plant assets was $267000. Accounts receivable and inventories increased by $75000 and $50000, respectively. Prepaid expenses and accounts payable decreased by $6000 and $69000, respectively. How much cash was provided by operating activities?

$1869000.

$1559000.

$1434000.

$1493000.

2.

A company had net income of $925600. Depreciation expense is $114400. During the year, accounts receivable and inventory increased $62400 and $166400, respectively. Prepaid expenses and accounts payable decreased $8320 and $16640, respectively. There was also a loss on the sale of equipment of $12480. How much cash was provided by operating activities?

$1123200.

$790400.

$815360.

$1173120.

3.

Blue Spruce Corp. reported a net loss of $12000 for the year ended December 31, 2017. During the year, accounts receivable decreased $6000, inventory increased $9600, accounts payable increased by $12000, and depreciation expense of $7200 was recorded. During 2017, operating activities

provided net cash of $8400.

provided net cash of $3600.

used net cash of $3600.

used net cash of $8400.

4.

Swifty Corporation had credit sales of $1216000. The beginning accounts receivable balance was $125000 and the ending accounts receivable balance was $213000. Using the direct method of reporting cash flows from operating activities, what were the cash collections from customers during the period?

$1128000.

$1341000.

$1378000.

$1216000.

5.

Whispering Winds Corp. reports a $18000 increase in inventory and a $4600 decrease in accounts payable during the year. Cost of Goods Sold for the year was $259400. Using the direct method of reporting cash flows from operating activities, cash payments made to suppliers were

$259400.

$236800.

$241400.

$282000.

6.

Cheyenne Corp. had the following transactions that took place during the year:

	I.	Recorded credit sales of $2250
	II.	Collected $1350 owning from customers
	III.	Recorded sales returns of $450 and credited the customer's account.

What is the total effect of these transactions on free cash flow?

Cash Flow

Increase

Decrease

Cannot be determined

No Effect

7.

A company had net income of $276360. Depreciation expense is $25480. During the year, accounts receivable and inventory increased $14700 and $39200, respectively. Prepaid expenses and accounts payable decreased $1960 and $13720, respectively. There was also a loss on the sale of equipment of $16660. How much cash was provided by operating activities?

$311640.

$332220.

$252840.

$236180.