statements Q.4. Circle the right answer. Show the necessary working to support your answer. (10 Marks) 1. ADI Company's ledger shows the following balances on December 31, 2016: Sales S365,000, Accounts Receivable S146,000, Allowance for Doubtful Accounts $7,300, Sales Returns $3,650, Sales discounts $5,475 and Credit card expense $4,380. Calculate the amount of net sales reported on the Income Statement. Show the working. a. $355,876 b. S351,495 c. $348,575 d. S211,700 1. Which type of sales will not increase the company's operating expenses? a. Cash sales b. Debit card sales c. Credit card sales d. Sales on account 2. Uncollectable accounts are the same as a. Bad debts. b. Notes receivables. c. Both a and b. d. None of the above. 3. Which of the following would you include in the cost of machinery? a. Installation charges. b. Testing of the machine c. Repair to machinery necessitated by installer's . . d. First-year maintenance cost. 4. The purpose of the statement of the cash flows is to a. Predict future cash flows. b. Evaluate management decisions c. Predict ability to make payments to lenders d. All of the above 5. Financing activities are most closely related to a. Current assets to current liabilities b. Long-term assets. c. Long-term liabilities and shareholder's equity d. Net income and dividend. 6. Which item does not appear on a statement of cash flows prepared by the indirect method? a. Collections from customers. b. Net income c. Depreciation d. Gain on sale of land 7. Robotics Inc. IC TICE COMO S60,000 after Of the a. Predict future cash flows. b. Evaluate management decisions c. Predict ability to make payments to lenders d. All of the above. 5. Financing activities are most closely related to a. Current assets to current liabilities b. Long-term assets. c. Long-term liabilities and shareholder's equity d. Net income and dividend. 6. Which item does not appear on a statement of cash flows prepared by the indirect method? a. Collections from customers. b. Net income c. Depreciation d. Gain on sale of land 7. Robotics Inc. Eamed net income of $60,000 after deducting amortization of S4,000 and all other expenses. Current assets increased by $3,000 and current liabilities decreased by $5,000. Using the indirect method, how much was Robotics cash flows from operating activities. Show the Woking. a. $48,000 b. $50,000 c. $52,000 d. $56,000 8. ABC Corporation borrowed $15,000, issued common shares of S10,000, and paid dividends of S25,000. What was ABC Corporation's net cash provided or used by financing activities? a. SO b. S25,000 c. S25,000 d. $50,000 9. Robotics Inc. Earned net income of $60,000 after deducting depreciation of $4,000 and all other expenses. Current assets increased by $3,000 and current liabilities decreased by $5,000. Using the indirect method, how much was Robotics cash flows from operating activities. Show the Woking. c. $48,000 f. 550,000 g S52,000 h. 556,000 10. ABC Corporation borrowed $15,000, issued common shares of $10,000, and paid dividends of $25,000. What was ABC Corporation's net cash provided or used by financing activities? b. $25,000 c. S25,000 d. S50,000 b. SO