1.Omar Company reported net income of 150,000 JD for the current year. Depreciation recorded on buildings and equipment amounted to 80,000 JD for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follow. Beginning of the year: Cash = 15,000 JD Account receivable 30,000 JD Inventories = 65,000 JD Prepaid expenses = 5000 JD Accounts payable = 16,000 JD Income taxes payable = 1300 JD End of the year: Cash = 20,000 JD Accounts receivable = 19,000 JD Inventories = 55,000 JD Prepaid expenses = 7500 JD Accounts payable = 12,000 JD Income taxes payable = 1600 JD Cash flows from the operating activities using the indirect method equals:Single choice.

(4 Points)

164,800

234,800

244,800

207,800

2.A company had net income of 230,000 JD. Depreciation expense is 26,000 JD. During the year, accounts receivables and inventory increased 15,000 JD and 40,000 JD respectively. Prepaid expenses and accounts payable decreased 2000 JD and 4000 JD respectively. There was also a loss on the sale of equipment of 3000 JD. How much cash was provided by operating activities ?Single choice.

(2 Points)

196,000

202,000

276,000

288,000

3.(X) company reports a 15,000 JD increase in inventory and 5000 JD increase in accounts payable during the year. Costs of goods sold for the year was 150,000 JD. The cash payment made to suppliers were ?Single choice.

(2 Points)

150,000

160,000

130,000

145,000

4.Use the following information to compute the cost of goods sold of a firm Current ratio 1.5 : 1 Acid test ratio 1.2 : 1 Current liabilities = 500,000 JD Inventory turn over 4 times Cost of goods sold =Single choice.

(2 Points)

750,000

550,000

600,000

150,000