QUESTION 25 It the income tan-L rate is 39%. the Before-Tax protit equal to an After-tax prot of 5553.030 is:ito- the nearest dollar] I.':_':- a. 5143313 r__'_'; b.8125.934 Gamma 5;: d.ST?.421 r:_':- e. None of the above. QUESTION 25 The correct amount of depreciation expense to add back in a Cash Finnr Statementis always: r\"; a. the amount shown in the income statement. ._ |:u.the amount of change seen in the Accumulated Depreciation account. 5;: c. the amount of change seen in the Equipment account. C:- -:i.the amount of change seen in the Cash account. ._ e. None of the above. QU ESTIDN E In a lCash Flow Statement: the balance that you are trying to reach at the very end is: C:- a. the Net Income for the period. If: b.the amount of dividends that were paid out during the period. if; c. the amount by which the cash changed during the period. C3 d. the cash balance at the end of the period. C- e. none of the above. QU ESTIDN T The Cash Flovir Statement goes I.vay back in history; ancient cavemen and cavewornen produced cash flow statements that are available for us to see today. C) True If.) False QUESTIONS Suggesting possible changes to your Revenue or Costs is referred to as Sensilivity Analysis. I1} True C) False QUESTION 9 On a Cash Flow Statement: it Operating Activities show a positive total of 810.000, and Investing Activities show a negative total of {835.000}, and the overall change in cash was a positive value of 020.000, then Financing Activities must have had: 3- a. a positive total of 545.0130. C; b.a negative total of {340.000}. If:- c. a positive total of 530,000. (I: cl. a negative total of {810.000}. 53' e. none of the above. QUESTIDN1D The higher your target prot goal becomes: and noliiing else changes in your costs and revenue relalionshios. the more units ofvour product must be sold. C: True C.- False QUESTION 11 It Accounts Receivable has increased from one year to lite next: you I.lrill show the change on your Cash Flow Statement as an addition to your Operating Activities total. i'__','- True Cf.- False Financial statement data for Gibbons Electronics Company for 2008 are as follows: GIBBONS ELECTRONICS COMPANY Comparative Balance Sheets Dec. 31, 2008 Dec. 31, 2007 Assets Cash $ 285,000 $ 305,000 Accounts receivable 334,000 384,000 Inventory 306,000 256,000 Prepaid insurance 55,000 35,000 Total current assets 980,000 ' 980,000 Capital assets 650,000 590,000 Accumulated amortization (165,000) _ (130,000) Net capital assets 485,000 460,000 _ Total assets $1,455,000 $1,440,000 " liabilities and shareholder-8' equity Accounts payable $ 60,000 _ $ 50,000 Wages payable _ 15,000 20,000 Unearned revenue 50,000 25,000 Income taxes payable 55,000 45,000 Total current liabilities 180,000 140,000 Bond payable 490,000 575,000 Total liabilities 670,000 715,000 Common shares 365,000 W Retained earnings 430,000 440,000 Total shareholders' equity 795,000 725,000 Total liabilities and shareholders' equity $ 1,465,000 $ 1,440,000 GIBBONS ELECTRONICS COMPANY Income statement For the Year Ended December 31, 2008 Sales revenue $3,855,000 Gain on sale of capital assets 10,000 3,865,000 Expenses Cost of goods sold $1,905,000 Wages expense 323,000 Amortization expense 95,000 Other operating expenses 525,000 interest expense 150,000 Income taxes 345,000 Total expenses M Net income HEM. Additional information: 1. Old capital assets originally costing $120,000 were sold for $70,000. 2. New capital assets were purchased for cash during the year. 3. Some of the bonds were repaid during the year. 4. New shares were issued for cash during the year. 5. Dividends were declared and paid during the year. Required: Prepare a cash ow statement for Gihbons Electronic Company for the year ended December 31, 2008.] \fLIUEB'I'IUN'T! We have studied two major accounting topics in ACCT 201? so far. II} True C- False QUESTIGN1E The Contribution Margin per unit I.vill be smaller than the revenue per unit. if mere are variable costs involved. C," True f__':- False QUESTIDN1T If a longterrn asset had an original cost of 840.000: and accumulated deprecialion of $35000. but I.vas sold for double its book value. there was: If; a. a gain on sale of$10,000. C? be loss on sale of 810000. If) c. a loss on sale of $5,000 if; d.a gain on sale of 55000. If]: E- None of the above.