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i. Millar Ltds net profit after tax was $100,000. The depreciation expense was $25,000. During the year, selected accounts changed as follows: Accounts payable increased

i.

Millar Ltds net profit after tax was $100,000. The depreciation expense was $25,000. During the year, selected accounts changed as follows: Accounts payable increased by $4,000; accounts receivable decreased by $5,000; inventories decreased by $15,000; prepaid expenses increased by $500; and revaluation surplus increased by $21,000. How much cash was provided by operating activities (i.e. net cash inflow)?

a. $130,500

b. $148,500

c. $125,000

d. $141,500

e. $98,500

ii. Of the items below, the one that usually appears first on the statement of cash flows is:

a. net increase (decrease) in cash.

b. cash at the end of the period.

c. non-cash financing activities.

d. cash at the beginning of the period.

e. non-cash investing activities.

iii. Tisdale Ltd is a service provider and reported net profit after tax of $30,000. This included a depreciation expense of $3,000 and a loss on sale of equipment of $2,000. During the year, working capital accounts changed as follows: Accounts receivable increased by $7,000 and accounts payable decreased by $3,000. How much cash was provided by operating activities (i.e. net cash inflow)?

a. $45,000

b. $29,000

c. $25,000

d. $35,000

e. $30,000

iv. In calculating net cash provided by operating activities using the indirect method, an increase in prepaid expenses during a period is:

a. added to net income.

b. ignored because it does not affect income.

c. ignored because it does not affect expenses.

d. deducted from net income.

e. not reported on a statement of cash flows.

v. Which combination is the appropriate operation to perform to the following accounts to reconcile net profit with net cash flows from operating activities?

a. Add an increase in inventory and subtract a decrease in accounts payable

b. Add a decrease in inventory and add an increase in accounts payable

c. Add an increase in inventory and add a decrease in accounts payable

d. Subtract an increase in inventory and add a decrease in accounts payable

e. Subtract a decrease in inventory and add an increase in accounts payable

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