11. R&R Heating, Inc. has 350,000 shares of $3-par common stock outstanding. They have declared a 5% stock dividend. The current market price of the common stock is $7.50 per share. The amount that will be credited to common stock on the date of declaration is

A. $52,500.

B. $78,750.

C. $131,250.

D. $183,750.

12. The formula for computing additional paid-in capital in excess of par is shares of stock times

A. selling price per share plus par value per share.

B. par value per share of stock.

C. selling price per share of stock.

D. selling price per share minus par value per share.

13. The Coulter Corporation Stockholders' Equity section includes the following information:

Preferred Stock	$12,000
Paid-in Capital in Excess of Par-Preferred	$2,700
Common Stock	$15,000
Paid-in Capital in Excess of Par-Common	$4,100
Retained Earnings	$8,200

What is the total selling price of the common stock?

A. $14,700

B. $15,000

C. $27,300

D. $19,100

14. A purchase of new equipment on a note payable under the direct method is reported

A. as a separate disclosure as a non-cash transaction.

B. in the investing section of the cash flow statement.

C. in the operating section of the cash flow statement.

D. in the financing section of the cash flow statement.

15. Hanna Industries has an inventory turnover of 112 days, an accounts payable turnover of 73 days, and an accounts receivable turnover of 82 days. Hanna's cash conversion cycle is

A. 43 days.

B. 121 days.

C. 9 days.

D. 103 days.

16. Other than depreciation, a company's operating expenses for the year were $335,000. Prepaid expenses decreased by $7,000. Cash payments for operating expenses to be reported on the cash flow statement using the direct method are

A. $342,000.

B. $335,000.

C. $328,000.

D. $7,000.

17. A company sold an asset with a book value of $56,000 for $35,000 cash. Which of the following is a true statement?

A. Loss on sale equals $35,000 and Cash inflow equals $21,000.

B. Loss on sale equals $35,000 and Cash inflow equals $35,000.

C. Loss on sale equals $21,000 and Cash inflow equals $35,000.

D. Loss on sale equals $56,000 and Cash inflow equals $56,000.

18. Which of the following causes the par value of a company's stock to decrease?

A. Cash dividend

B. Stock split

C. Stock dividend

D. Sale of additional stock

19. Motor Works, Inc. has declared a $20,000 cash dividend to shareholders. The company has 5,000 shares of $15-par, 10% preferred stock and 10,000 shares of $20-par common stock. The preferred stock is cumulative. How much will be distributed to the preferred and common stockholders on the date of payment if the preferred stock is $8,000 in arrears?

A. $15,500 preferred, $4,500 common

B. $8,000 preferred, $12,000 common

C. $20,000 preferred, $0 common

D. $7,500 preferred, $12,500 common

20. When a company sells off part of its business, this transaction is reported in a/ the

A. discontinued operations section.

B. extraordinary items section.

C. retrospective application.

D. continuing operations section.