Chap 12

1.ABC company's Inventory balance at 12/31 of the current year was $199,485 and was $199,085 at 12/31 of the previous year. Its Accounts Payable balance at 12/31/current year was $79,752 and was $79,154 at 12/31/previous year, and its cost of goods sold for the current year was $719,147. The company's total amount of cash payments for merchandise in the current year equals:Answer to nearest whole dollarwithout any commas, decimal points, or words (e.g. 1000 not 1,000.00 or increase 1000).Enter a negative number as -10 not (10).

2.A company's income statement showed the following: net income, $307,215; depreciation expense, $30,530; and gain on sale of plant assets, $19,250. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $8,806; merchandise inventory increased $19,487; prepaid expenses decreased $9,040; accounts payable increased $3,452. Calculate the net cash provided or used by operating activities.Answer to nearest whole dollarwithout any commas, decimal points, or words (e.g. 1000 not 1,000.00 or increase 1000).Enter a negative number as -10 not (10).

3.A machine with a cost of $198,748 and accumulated depreciation of $102,520 is sold for $92,649 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

Answer to nearest whole dollarwithout any commas, decimal points, or words (e.g. 1000 not 1,000.00 or increase 1000).Enter a negative number as -10 not (10).

4.EagleCorporation had a net decrease in cash of $6,807 for the current year. Net cash used in investing activities was $39,464 and net cash used in financing activities was $49,875. What amount of cash was provided (used) in operating activities?Answer to nearest whole dollarwithout any commas, decimal points, or words (e.g. 1000 not 1,000.00 or increase 1000).Enter a negative number as -10 not (10).

5.In preparing a company's statement of cash flows for the most recent year, the following information is available: loss on sale of equipment30,702, purchase of machinery 111,007, proceeds from sale of equipment 88,976, repayment of outstanding bonds 97,412, purchase treasury stock 11,473, issue common stock 99,789, purchase land 97,797, increase in accounts receivable during the year 23,169, decrease in accounts payable for the year 67,921, payment of cash dividend 31,323. What is the net cash flows from investing activities for the year?Answer to nearest whole dollarwithout any commas, decimal points, or words (e.g. 1000 not 1,000.00 or increase 1000).Enter a negative number as -10 not (10).Indicate a netsource of cashas a positive number and a netuse of cashas a negative number.

6.In preparing a company's statement of cash flows for the most recent year, the following information is available: loss on sale of equipment35,661, purchase of machinery 114,238, proceeds from sale of equipment 115,640, repayment of outstanding bonds 85,885, purchase treasury stock 51,024, issue common stock 109,808, purchase land 82,502, increase in accounts receivable during the year 15,378, decrease in accounts payable for the year 80,988, payment of cash dividend 32,175. What is the net cash flows from financing activities for the year?Answer to nearest whole dollarwithout any commas, decimal points, or words (e.g. 1000 not 1,000.00 or increase 1000).Enter a negative number as -10 not (10).Indicate a netsource of cashas a positive number and a netuse of cashas a negative number.

7.The full disclosure principle requires that noncash investing and financing activities be disclosed as part of the statement of cash flows.

True

False

8.A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

True

False

9.Cash payments to reduce long-term debt are included in the operating activities section of the statement of cash flows.

True

False

10.The issuance of common stock would be included in the financing activities section when preparing a statement of cash flows.

True

False

Note: "Would like Microsoft Excel to be used to show how to work the problems"