Wilmas Vegetable Market had the following transactions during 2017:

1. Issued $25,000 of par value common stock for cash.

2. Recorded and paid wages expense of $10,000.

3. Acquired land by issuing common stock of par value $50,000.

4. Declared and paid a cash dividend of $1,000.

5. Sold a long-term investment (cost $3,000) for cash of $3,000.

6. Recorded cash sales of $20,000.

7. Bought inventory for cash of $2,000.

8. Acquired an investment in IBM stock for cash of $6,000.

9. Converted bonds payable to common stock in the amount of $10,000.

10. Repaid a 6 year note payable in the amount of $11,000.

What is the net cash provided by operating activities?

a. $20,000.

b. $18,000.

c. $10,000.

d. $8,000.

5. Wilmas Vegetable Market had the following transactions during 2017:

1. Issued $25,000 of par value common stock for cash.

2. Recorded and paid wages expense of $10,000.

3. Acquired land by issuing common stock of par value $50,000.

4. Declared and paid a cash dividend of $1,000.

5. Sold a long-term investment (cost $3,000) for cash of $3,000.

6. Recorded cash sales of $20,000.

7. Bought inventory for cash of $2,000.

8. Acquired an investment in IBM stock for cash of $6,000.

9. Converted bonds payable to common stock in the amount of $10,000.

10. Repaid a 6 year note payable in the amount of $11,000.

What is the net cash provided by financing activities?

a. $13,000. c. $14,000

b. $25,000. d. $ 9,000

6. Wilmas Vegetable Market had the following transactions during 2017:

1. Issued $25,000 of par value common stock for cash.

2. Recorded and paid wages expense of $10,000.

3. Acquired land by issuing common stock of par value $50,000.

4. Declared and paid a cash dividend of $1,000.

5. Sold a long-term investment (cost $3,000) for cash of $3,000.

6. Recorded cash sales of $20,000.

7. Bought inventory for cash of $2,000.

8. Acquired an investment in IBM stock for cash of $6,000.

9. Converted bonds payable to common stock in the amount of $10,000.

10. Repaid a 6 year note payable in the amount of $11,000.

What is the net cash provided by investing activities?

a. $6,000.

b. $16,000

c. ($3,000).

d. $3,000.

7. During 2017, Bale Company sold equipment with a book value of $90,000 for proceeds of $104,000. The company purchased new equipment for $240,000 by signing a long-term note payable. No other transactions impacted long-term asset accounts during 2017. The investing section of the statement of cash flows will report

a. net cash outflows of $226,000.

b. net cash outflows of $136,000.

c. net cash inflows of $104,000.

d. net cash inflows of $14,000.

8. In Conley Company, land decreased $180,000 because of a cash sale for $180,000, the equipment account increased $60,000 as a result of a cash purchase, and Bonds Payable increased $195,000 from issuance for cash at face value. The net cash provided by investing activities is

a. $180,000.

b. $315,000.

c. $120,000.

d. $135,000.

9. Accounts receivable arising from sales to customers amounted to $120,000 and $105,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $360,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

a. $360,000.

b. $375,000.

c. $465,000.

d. $345,000.

12. Ballester Company reported net income of $150,000 for the current year. Depreciation recorded on buildings and equipment amounted to $75,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

End of Year Beginning of Year

Cash $20,000 $15,000

Accounts receivable 19,000 32,000

Inventories 50,000 60,000

Accounts payable 12,000 18,000

Instructions

Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.

13. The following information is available for Collins Corporation for the year ended December 31, 2017:

Collection of principal on long-term loan to a supplier $35,000

Acquisition of equipment for cash 10,000

Proceeds from the sale of long-term investment at book value 22,000

Issuance of common stock for cash 20,000

Depreciation expense 25,000

Redemption of bonds payable at carrying (book) value 34,000

Payment of cash dividends 14,000

Net income 30,000

Purchase of land by issuing bonds payable 40,000

In addition, the following information is available from the comparative balance sheet for Collins at the end of 2017 and 2016:

2017 2016

Cash $102,000 $34,000

Accounts receivable (net) 25,000 15,000

Prepaid insurance 19,000 13,000

Total current assets $146,000 $62,000

Accounts payable $ 30,000 $19,000

Salaries payable 6,000 7,000

Total current liabilities $ 36,000 $26,000

Instructions

Prepare Collins's statement of cash flows for the year ended December 31, 2017, using the indirect method.