Chapter 13 Accounting

Jean's Vegetable Market had the following transactions during 2014: Issued $50,000 of par value common stock for cash. Repaid a 6 year note payable in the amount of $22,000. Acquired land by issuing common stock of par value $50,000. Declared and paid a cash dividend of $7,000. Sold a long-term investment (cost $3,000) for cash of $6,000. Acquired an investment in IBM stock for cash of $10,000 What is the net cash provided by financing activities?

=$21,000

Indicate where the payment of income taxes would appear, if at all, on the statement of cash flows. A. Operating activities section B. Investing activities section C. Financing activities section D. Does not represent a cash flow

A. Operating activities section

Cash receipts from interest and dividend income are classified as A. operating activities B. financing activities C. investing activities D. either financing or investing activities

A. operating activities

Using the indirect method, if equipment is sold at a gain, the A. the amount of the gain is added in the operating activities section B. the amount of the gain is deducted in the operating activities section C. the sale proceeds received are added in the operating activities section D. the sale proceeds received are deducted in the operating activities section

B. the amount of the gain is deducted in the operating activities section

The net income reported on the income statement for the current year was $245,000. Depreciation was $40,000. Accounts Receivable and Inventories decreased by $12,000 and $35,000, respectively. Prepaid Expenses and Accounts Payable increased, respectively, by $1,000 and $8,000. How much cash was provided by operating activities? A. $296,000 B. $323,000 C. $339,000 D. $311,000

C. $339,000

Bush Company reported net income of $60,000 for the year. During the year, accounts receivable decreased by $8,000; accounts payable increased by $4,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is A. $48,000 B. $55,000 C. $77,000 D. $59,000

C. $77,000

Jean's Vegetable Market had the following transactions during 2014: Issued $50,000 of par value common stock for cash. Repaid a 6 year note payable in the amount of $22,000. Acquired land by issuing common stock of par value $100,000. Declared and paid a cash dividend of $2,000. Sold a long-term investment (cost $3,000) for cash of $8,000. Acquired an investment in IBM stock for cash of $15,000 What is the net cash provided (used) by investing activities? A. $33,000 B. $15,000 C. ($7,000) D. $8,000

C. ($7,000)

Indicate where the issuance of common stock for cash would appear, if at all, on the indirect statement of cash flows. A. Does not represent a cash flow B. Investing activities section C. Financing activities section D. Operating activities section

C. Financing activities section

Indicate where the purchase of land for cash would appear, if at all, on the indirect statement of cash flows. A. Financing activities section B. Does not represent a cash flow C. Investing activities section D. Operating activities section

C. Investing activities section

Financing activities involve A. acquiring investments B. acquiring property, plant & equipment C. issuing debt D. lending money

C. issuing debt