Please help me with these questions ACC 291 Week 5 University Of Phoenix

1.Which of the following is an operating activity?

oSale of equipment

oPayment of interest

oPayment of a cash dividend

oMaking a loan to another entity

2.Which is an example of a cash flow from an investing activity?

oPayment of cash to repurchase outstanding capital stock

oReceipt of cash from the sale of equipment

oPayment of cash to suppliers for inventory

oReceipt of cash from the issuance of bonds payable

3.Hanover, Inc. purchased land through the issuance of long-term bonds. How is this reported on the statement of cash flows?

oInvesting inflow

oOperating activity

oFinancing outflow

oSignificant noncash investing and financing activity that merits disclosure

4.Under the indirect method of preparing the statement of cash flows, which of the following is added to net income in the operating activities section?

oGain on sale of equipment

oDecrease in accounts payable

oIncrease in accounts receivable

oDepreciation expense

5.In what section of the statement of cash flows will the issuance of bonds payable to acquire a building be reported?

oCash flows from financing activities

oCash flows from operating activities

oCash flows from investing activities

oNoncash investing and financing activities

6. Which of the following items is reported in the operating activities section of a statement of cash flows prepared using the direct method?

oDepreciation expense

oIncrease in accounts receivable

oLoss on sale of building

oCash payments to suppliers

7. In horizontal analysis of a balance sheet, of what amount is each item expressed as a percentage?

oCurrent year net income amount

oCurrent year stockholders' equity amount

oCurrent year total assets amount

oBase-year amount

8. The following schedule is a display of what type of analysis?

AmountPercent

Current assets$200,00025%

Property, plant, and equipment600,00075%

Total assets$800,000100%

oTrend analysis

oVertical analysis

oHorizontal analysis

oRatio analysis

9. Ceradyne, Inc. presented the following data for a company:

Current liabilities$360

Long-term debt480

Common stock640

Retained earnings520

Total liabilities & stockholders' equity$2,000

10. How would common stock appear on a common size balance sheet using vertical analysis?

o32.0%

o75.0%

oCannot be determined from the data given

o55.1%

11.Use the following financial statement information as of the end of each year to answer this question.

20172016

Inventory$54,000 $48,000

Current assets81,000106,000

Total assets392,000 336,000

Current liabilities27,00036,000

Total liabilities 102,000 88,000

Total stockholders' equity290,000 248,000

Preferred stock 10,00010,000

Net sales784,000 697,000

Cost of goods sold306,000 277,000

Net income34,00090,000

Tax expense22,00018,000

Interest expense12,00012,000

Dividends paid to preferred stockholders2,0002,000

Dividends paid to common shareholders1,0001,000

Compute the profit margin for 2017.

o8.9%

o4.3%

o8.4%

o11.7%