Question
Big Horn Company reported net income of $3,200 for the current year. The company's income statement shows depreciation expense of $750. Balances for the company's
Big Horn Company reported net income of $3,200 for the current year. The company's income statement shows depreciation expense of $750. Balances for the company's current asset and current liability accounts at the beginning and end of the year are as follows:
End of year | Beginning of year | |
Cash | $220 | $150 |
Accounts receivable | 170 | 320 |
Inventory | 550 | 650 |
Prepaid expenses | 75 | 50 |
Accounts payable | 140 | 180 |
Income taxes payable | 6 | 12 |
When the statement of cash flows is prepared, Big Horn Company will show operating cash flows of
a. | $2,629. | |
b. | $3,379. | |
c. | $4,129. | |
d. | $4,229. | |
e. | none of the above |
Consider the following transactions:
Paid interest with cash $10
Paid cash dividends $45
Sold common stock for cash $1,200
Purchased treasury stock for cash $360
Sold bonds for cash $800
What amount will be reported as the net cash inflow from financing activities?
a. | $850 | |
b. | $1,560 | |
c. | $1,595 | |
d. | $1,685 | |
e. | none of the above |
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