Question
1.In 2016 , Mat Corporation borrowed $50,000 , paid dividends of $18,000 , issued 7,000 shares of stock for $45 per share, purchased land for
1.In 2016, Mat Corporation borrowed $50,000, paid dividends of $18,000, issued 7,000 shares of stock for $45 per share, purchased land for $15,000,
and received dividends of $15,000. Net income was $150,000, and depreciation for the year totaled $6,000. Accounts receivable increased by $10,000.
How much should be reported as net cash provided by operating activities by the indirect method?
A.
$503,000
B.
$146,000
C.
$156,000
D.
$153,000
2. The following information pertains to AlabamaAlabama
Company:
Save Accounting Table... + Copy to Clipboard... + Net income . . . . . . . . . . . . . . . . . . . . . . . . . . .
$60,000
Increase in accounts payable . . . .
$12,000
Depreciation expense . . . . . . . . . . . . . . . . . .
13,000
Acquisition of equipment
Payment of dividends . . . . . . . . . . . . . . . . . . .
5,000
with cash . . . . . . . . . . . . . . . . . . . .
28,000
Increase in accounts receivable . . . . . . . . . .
6,000
Sale of treasury stock . . . . . . . . . .
1,000
Collection of long-term notes receivable . . . .
12,000
Payment of long-term debt . . . . . .
7,000
Loss on sale of land . . . . . . . . . . . . . . . . . . . .
14,000
Proceeds from sale of land . . . . .
43,000
Decrease in inventories . . . . . . . .
7,000
Net cash provided by (used for) financing activities would be
A.
$(11,000).
B.
$(4,000).
C.
$115,000.
D.
$5,000.
3. The following information pertains to Montana
Company:
Save Accounting Table... + Copy to Clipboard... + Net income . . . . . . . . . . . . . . . . . . . . . . . . . . .
$50,000
Increase in accounts payable . . . .
$10,000
Depreciation expense . . . . . . . . . . . . . . . . . .
9,000
Acquisition of equipment
Payment of dividends . . . . . . . . . . . . . . . . . . .
3,000
with cash . . . . . . . . . . . . . . . . . . . .
27,000
Increase in accounts receivable . . . . . . . . . .
5,000
Sale of treasury stock . . . . . . . . . .
1,000
Collection of long-term notes receivable . . . .
6,000
Payment of long-term debt . . . . . .
15,000
Loss on sale of land . . . . . . . . . . . . . . . . . . . .
13,000
Proceeds from sale of land . . . . .
33,000
Decrease in inventories . . . . . . . .
6,000
Net cash provided by (used for) investing activities would be
A.
$12,000.
B.
$89,000.
C.
$81,000.
D.
$(78,000).
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Accounting Information Systems
Authors: James Hall
9th Edition
1305465113, 9781305465114
