accounting question

activities in a statement of cash flows relate to the acquisition and disposal of long-term assets. 5. Hocking Duck reports for 2014: Beginning inver $30 000 Ending inventory 40 000 Cost of sales 90 000 Determine credit purchases for the year. Select one: O a. $100 000 b. $90 ood c. $110 000 6. d. $140 000 During the year a firm reported that accounts receivable had increased by $35 000. If accrual basis sales were $200 000 the amount of cash received from customers during the year must have been: Select one: a. $165 000 b. $190 000 O c. $210 OOO 7. O d. $235 000 The balance sheets of Green Ltd show: 31 December 2013 2014 Current tax liability $30 000 $45 000 The income statement for the year ended 31 December 2014 shows: Income tax expense $45 000 What amount in respect of income tax will appear in the statement of cash flows for the year ended 31 December 2014, assuming tax is paid annually in arrears and there are no over or under provisions of tax. Select one: a. Nil b. $30 000 O C. $42 000 8. O d. $45 000How many of these would be classified as investing activities on a statement of cash flows? purchase of a computer . issue of debentures . purchase of inventory . payment of dividends Select one: O a. One O b. Two c. Three O d. Four Which statement concerning the interpretation of a statement of cash flows is untrue? Select one: O a. The statement of cash flows as required under IAS 7/AASB 107 only goes some of the way in enabling users to establish the liquidity/solvency position of an entity b. Ways in which cash flows can be manipulated include delaying cash payments and employing finance leases c. It is the indirect method rather than the direct method of preparation that is preferred by the standard setters 2. d. The notes to the statement of cash flows are important in interpreting the firm's cash position 3. activities in a statement of cash flows are those activities which relate to the main revenue-producing activities of the entity. The records of Count Bases Pizza's showed the following: 30 June 2013 30 June 2014 Pizza ovens and equipment $49 000 $53 000 Accumulated depreciation ovens and equipment $10 000 $12 000 Cost of equipment sold $5 000 Carrying value of equipment sold $3 000 Proceeds of sale of equipment sold $4 500 What is the investing cash inflow for equipment sold during 2013/14? Select one: O a. Carrying value of equipment sold $3 000 O b. Equipment sold $4 000 c. Proceeds of sale of equipment $4 500 d. Cost of equipment sold $5 0001. These are extracts from the balance sheets of Mitchell Ltd: 30 June 2013 2014 Plant $10 000 $15 000 Accumulated depreciation - plant 4 000 5 000 The income statement for the year ended 30 June 2014 shows: Depreciation expense - plant 1500 Proceeds from the sale of pla 1600 Carrying value of plant sold 2500 During the year Mitchell Ltd sold plant that had cost $3000. The investing cash outflows for the purchase of plant during the year are: Select one: a. $2000 O b. $5000 O c. $8000 O d. $15 000