A03K -Principles of Accounting 2. I need answers for 13 question 28 thru 40

LaSSIJlI 27. Operating expenses other than depreciation 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 would be: a. $335,000. b. $342,000. $328,000. ~ d. 28. 29. 5 $7,000. When using the direct method to determine the net cash flows from . operating activities, major categories would NOT include: a. cash received from customers. b. cash paid for salaries. c. cash paid for dividends. d. cash paid for inventory. Many accountants prefer which method of computing cash flow from operating activities? a. Combination method b. Direct method .', c. Indirect method d. Adjusting method A03K Principles of Accounting t II - Page 523 Lasson 5 30. 31. 32. The method of reporting cash flows from operating activities under which revenues and expenses on the income statement are adjusted to reflect the amount of cash received or expended for each item is the: -- a. direct method. -- b. indirect method. -- c. combination method. d. adjustment method. When preparing the statement of cash flows by the indirect method, if current liabilities increase the difference is: __ a. added to net incom.e. __ b. added to investments. __ c. deducted from net income. __ d. subtracted from investments. When preparing the statement of cash flows by the indirect method, if accumulated depreciation increases the differenceis: a. added to net income. -- b. added to investments. -- c. deducted from net income. -- d. not considered in the statement of cash flows using the, indirect method. -- A03K Principles of Accounting II - Page 524 33. 34. When using the indirect method, which of the followingwould be included in the net cash flows from operating activitiessection of a cash flow statement? a. Sales of plant, property and equipment b. Making loans and paying out interest c. Payment of interest and expenses d. Issuing bonds and notes Rick Corporation's Accounts Receivable decreasedby $25,000during the year. What is the adjustment to the cash flow statement when it is prepared by the indirect method? a. Subtract the decrease from the net income in operating activities. b. Add the decrease to the net incomein operating activities. c. Add the decrease in the investing activitiessection. d. Subtract the decrease in the financingactivities. I'I A03K Principles of Accounting II - Page 525 Ii Ii II I; I~' Losson 5 35. 36. Collins Corporation reported a net income of $35,000, depreciation expenses of $20,000, an increase in Accounts Payable of $2,000, and an increase in Accounts Receivable of $3,000. Net cash flow from operating activities using the indirect method is: a. $55,000. b. $54,000. ~" c. $50,000. d. $56,000. Trundle expenses decrease activities Corporation reported a net income of $40,000, depreciation. of $1,000, sales of additional common shares of $25,000, and a in Accounts Payable of $8,000. Net cash flow from operating using the indirect method is: a. $41,000. b. $32,000. c. $33,000. d. $58,000. " ti A03K principles of Accounting II - Page 526 -- 37. 38. Smith Corporation reported a net income of $54,000, depreciation expenses of $10,000, an increase in Accounts Payable of $3,000,and an increase in Accounts Receivable of $1,500. Under the indirect method, net cash flow from operating activities is: a. $62,500. b. $59,500. c. $48,500. d. $65,500. Big Toy Corporation's records show a profit of $30,000, depreciation expenses of $10,000, and cash dividends declared and paid of $5,000. The amount of cash used in operating activities using the indirect method IS: a. $40,000. h. $30,000. c. $20,000. d. $10,000. A03K Principles of Accounting II - Page 527 losson 5 39. 40. Carmen's Candies=net income was $40,000. Accounts Receivable decreased by $30,000, Merchandise Inventory increased by $20,000, Accounts Payable decreased by $4,000, and Salaries Payable increased by $1,000. The net cash flow from operating activities using the indirect method is: a. $33,000. b. $47,000. c. $53,000. d. $61,000. Fidelity Furniture'S net income was $25,000. Accounts Receivable decreased by $18,000, Merchandise Inventory increased by $7,000, Accounts Payable increased by $4,000, and Salaries Payable decreased by $3,000. The net cash flow from operating activities using the indirect method is: a. $57,000. b. $43,000. c. $37,000. d. $15,000. A03K Principles of Accounting II - Page 5,28