Table 5-3

Fergie Inc. had the following account balances on its balance sheet at December 31, 20X9 and 20X8, respectively:

12/31/X9 12/31/X8

Long-term Bonds Payable $39,000 $36,000

The company extinguished $7,000 face value of long-term bonds, incurring a $3,000 gain

5) Referring to Table 5-3, what was the positive cash flow associated with long-term debt for Fergie, Inc. in 20X9?

A) $10,000

B) $3,000

C) $13,000

D) $4,000

E) $7,000

6) Referring to Table 5-3, what was the negative cash flow associated with long-term debt for Fergie, Inc. in 20X9?

A) $10,000

B) $4,000

C) $7,000

D) $0

E) $3,000

Table 5-1

Kasian Catering

Balance Sheet

December 31, 20X9 and 20X8

12/31/X9 12/31/X8

Current Assets:

Cash $ 4,600 $ 3,100

Accounts Receivable 9,600 7,900

Inventory 17,500 18,600

Supplies 1,200 2,100

Prepaid Insurance 1,400 1,000

Total Current Assets 34,300 32,700

Long-term Assets:

Fixed Assets 71,000 58,000

Accumulated Depreciation (30,400) (26,500)

Patent 6,000 7,100

Total Long-term Assets 46,600 38,600

Total Assets $ 80,900 $ 71,300

Current Liabilities:

Accounts Payable $ 6,100 $ 4,900

Wages Payable 2,200 2,600

Interest Payable 800 1,000

Taxes Payable 2,300 1,600

Total Current Liabilities 11,400 10,100

Long-term Liabilities: Bonds Payable 20,300 24,000

Total Liabilities 31,700 34,100

Stockholders' Equity:

Common Stock 22,700 20,000

Retained Earnings 26,500 17,200

Total Stockholders' Equity 49,200 37,200

Total Liabilities and Stockholders' Equity $ 80,900 $ 71,300

Kasian Catering

Income Statement

For the Year Ended December 31, 20X9

Sales $147,600

Cost of Goods Sold (63,800)

Gross Profit 83,800

Less Operating Expenses:

Wage Expense $ 40,100

Supply Expense 3,600

Insurance Expense 3,000

Depreciation Expense 3,900

Amortization Expense 1,100

Rent Expense 5,400 57,100

Operating Income 26,700

Interest Expense (2,600)

Income before Taxes 24,100

Income Tax Expense (10,800)

Net Income $ 13,300

7) Referring to Table 5-1, what was the cash collected from customers by Kasian Catering in 20X9?

A) $138,000

B) $145,900

C) $147,600

D) $149,200

E) $157,200

8) Referring to Table 5-1, how much inventory did Kasian Catering purchase in 20X9?

A) $81,300

B) $63,800

C) $64,900

D) $46,300

E) $62,700

9) Referring to Table 5-1, what was the cash paid to suppliers of inventory by Kasian Catering in 20X9?

A) $63,800

B) $61,500

C) $63,700

D) $63,900

E) $66,100

10) Referring to Table 5-1, what was the cash paid to employees by Kasian Catering in 20X9?

A) $40,500

B) $39,700

C) $40,100

D) $38,000

E) $42,300

11) Referring to Table 5-1, what was the cash paid for supplies by Kasian Catering in 20X9? (Assume all purchases of supplies were for cash.)

A) $3,600

B) $4,500

C) $2,400

D) $2,700

E) $4,800

12) Referring to Table 5-1, what was the cash paid for income taxes by Kasian Catering in 20X9?

A) $7,100

B) $11,700

C) $10,100

D) $10,900

E) $8,600

13) Referring to Table 5-1, what was the cash flow from operations for Kasian Catering in 20X9?

A) $18,300

B) $19,500

C) $8,200

D) $14,500

E) $13,000

14) Referring to Table 5-1, what was the cash (paid or received) from the purchase and/or sale of fixed assets by Kasian Catering in 20X9?

A) $(13,000)

B) $(9,100)

C) $(16,900)

D) $9,100

E) Cannot be determined from the information given

15) Referring to Table 5-1, what was the cash flow from investing activities for Kasian Catering in 20X9?

A) $(9,100)

B) $9,100

C) $(13,000)

D) $(12,000)

E) $2,000

16) Referring to Table 5-1, what were the dividends paid by Kasian Catering in 20X9?

A) $11,900

B) $0

C) $22,600

D) $4,000

E) $9,300