In its income statement, Fox Co. reported cost of goods sold of $450,000. Changes occurred in several balance sheet accounts as follows:

Inventory $160,000 decrease

Accounts payable-suppliers 40,000 decrease

What amount should Fox report as cash paid to suppliers in its cash flow statement, prepared under the direct method?

Group of answer choices

$570,000

$250,000

$330,000

$650,000

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Question 2

1pts

In its cash flow statement for the current year, Fox Co. reported cash paid for interest of $70,000. Fox did not capitalize any interest during the current year. Decreases occurred in several balance sheet accounts as follows:

Accrued interest payable$17,000

Prepaid interest23,000

In its income statement for the current year, what amount should Fox report as interest expense?

Group of answer choices

$76,000

$110,000

$30,000

$64,000

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Question 3

1pts

Which of the following is not disclosed on the statement of cash flows when prepared under the direct method, either on the face of the statement or in a separate schedule?

Group of answer choices

A reconciliation of net income to net cash flow from operations

The amount of income taxes paid

A reconciliation of ending retained earnings to net cash flow from operations

The major classes of gross cash receipts and gross cash payments

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Question 4

1pts

Fox Company's worksheet for the preparation of its current annual statement of cash flows included the following:

January 1December 31

Accounts receivable$25,000$30,000

Allowance for uncollectible accounts3,0002,000

Prepaid rent expense19,00014,750

Accounts payable29,25032,000

Fox's net income is $150,000. What amount should Fox include as net cash provided by operating activities in the statement of cash flows?

Group of answer choices

$151,000

$157,500

$149,000

$153,000

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Question 5

1pts

Fox, Inc. reported net income of $300,000 for the current. Changes occurred in several balance sheet accounts as follows:

Equipment $25,000 increase

Accumulated depreciation 10,000 decrease

Note payable 30,000 increase

Additional current year information:

During the year, Fox received $20,000 for the sale of equipment costing $80,000 that was 80% depreciated.

In December, Fox purchased equipment costing $50,000 with $20,000 cash and a 12% note payable of $30,000.

In Fox's statement of cash flows for the year, net cash provided by operating activities should be:

Group of answer choices

$316,000

$324,000

$350,000

$358,000

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Question 6

1pts

How should a loss from the sale of used equipment for cash be reported in a statement of cash flows using the indirect method?

Group of answer choices

In operating activities as an addition to income

In operating activities as a deduction from income

In investment activities as a reduction of the cash inflow from the sale

Ignored in both the operating and the investment activities

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Question 7

1pts

Fox Co. prepares its statement of cash flows using the indirect method. Fox's unamortized bond discount account decreased by $25,000 during the year. How should Fox report the change in unamortized bond discount in its statement of cash flows?

Group of answer choices

As a financing cash outflow

As a subtraction from net income in the operating activities section

As a financing cash inflow

As an addition to net income in the operating activities section

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Question 8

1pts

Fox Co. had $100,000 in cash-basis pretax income for the current year. At year-end, accounts

receivable had increased by $10,000 and accounts payable had decreased by $6,000 from their beginning yearbalances. Compared to the accrual basis method of accounting, Fox's cashpretax income is:

Group of answer choices

Higher by $4,000

Lower by $4,000

Lower by $16,000

Higher by $16,000

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Question 9

1pts

Fox Co. had net cash used by operating activities of $31,000; net cash provided by investing activities of $120,000; and cash used by financing activities of $95,000.Fox's ending cash balance was $11,000 on December 31. During the year, there was a redemption of Fox bonds that resulted in a loss of $20,000 and payment of $400,000. What was Fox's cash balance at the beginning of the year?

Group of answer choices

$25,000

$5,000

$37,000

$17,000

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Question 10

1pts

The primary purpose of a statement of cash flows is to provide relevant information about:

Group of answer choices

An enterprise's ability to generate future positive net cash flows

An enterprise's ability to meet cash operating needs

The cash receipts and cash disbursements of an enterprise during a period

Differences between net income and associated cash receipts and disbursements

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Question 11

1pts

Fox Co. sold equipment during the current year, recording a gain of $5,000.Fox originally paid $90,000 on purchasing the equipment several year ago, and it was 65% depreciated when Fox sold it.Fox's tax rate for the year of the sale is 40%.What amount should Fox report as the cash inflow from this sale on theirstatement of cash flows?

Group of answer choices

$21,900

$36,500

$18,900

$31,500

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Question 12

1pts

Which of the following items is included in the investing activities section of the statement of cash flows?

Group of answer choices

Cash effects of lending and collecting loan principal

Cash effects of selling treasury stock

Cash effects of issuing and redeeming bonds

Cash effects of making payments to common and preferred shareholders

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Question 13

1pts

In preparing its cash flow statement for the year ended December 31, Fox collected the following data:

Payment on purchase of equipment50,000Proceeds on sale of Owl Inc. bonds (par value $200,000)170,000Loss on sale of bonds20,000Amortization of bond discount5,000Proceeds on sale of MJM Co. stock (carrying amount $68,000)75,000Gain on sale of stock7,000

In its December 31 annual statement of cash flows, what amount should Fox report as net cash provided from investing activities?

Group of answer choices

$170,000

$177,000

$195,000

$182,000

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Question 14

1pts

Fox Co. sold used equipment for a $20,000 cash amount, reporting a $5,000 loss for both book and tax purposes. Later that year, Fox replaced the equipment by paying $30,000 cash and signing a $100,000 note payable for new equipment.In what separate inflow and/or (outflow) amount(s) should these equipment transactions be reported in the investing activities section of Fox's statement of cash flows?

Group of answer choices

($15,000)

($10,000)

$15,000 and ($30,000)

$20,000 and ($30,000)

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Question 15

1pts

In a statement of cash flows, which of the following items is reported as a cash outflow from financing activities?

I.Payments to retire mortgage notes

II.Interest payments on mortgage notes

III. Dividend payments

Group of answer choices

I only

I, II, and III

II and III only

I and III only