Ch. 4 Int. Fin. Acctng. Quiz

Selected information from the 2018 accounting records of Dunn's Auto Dealers is as follows: Cost of furniture purchased for cash $ 8,000 Proceeds from bank loan 100,000 Repayment of bank loan (includes interest of $4,000) 44,000 Proceeds from sale of equipment 5,000 Cash collected from customers 320,000 Purchase of stock of another corporation as an investment 20,000 Common stock issued for cash 200,000 In its 2018 statement of cash flows, Dunn's should report net cash outflows from investing activities of:

$23,000

Selected information from the 2018 accounting records of Dunn's Auto Dealers is as follows: Cost of furniture purchased for cash $ 8,000 Proceeds from bank loan 100,000 Repayment of bank loan (includes interest of $4,000) 44,000 Proceeds from sale of equipment 5,000 Cash collected from customers 320,000 Purchase of stock of another corporation as an investment 20,000 Common stock issued for cash 200,000 In its 2018 statement of cash flows, Dunn's should report net cash inflows from financing activities of:

$260,000

The following items appeared in the 2018 year-end trial balance for the Brown Coffee Company: Debits Credits Revenues $ 600,000 Operating expenses $ 420,000 Income on discontinued operations 200,000 Restructuring costs 100,000 Interest expense 20,000 Gain on sale of investments 30,000 Income tax expense has not yet been accrued. The company's income tax rate is 40%. What amount should be reported in the company's year 2018 income statement as income from continuing operations?

$54,000

Income statement: 2018 Sales $ 2,500,000 Cost of goods sold 1,300,000 Net income 200,000 Balance sheets: 2018 2017 Accounts receivable $ 300,000 $ 200,000 Total assets 2,000,000 1,800,000 Total shareholders' equity 900,000 700,000 The asset turnover for 2018 is:

1.32

Income statement: 2018 Sales $ 2,500,000 Cost of goods sold 1,300,000 Net income 200,000 Balance sheets: 2018 2017 Accounts receivable $ 300,000 $ 200,000 Total assets 2,000,000 1,800,000 Total shareholders' equity 900,000 700,000 The accounts receivable turnover for 2018 is:

10.0

The Esquire Company reported sales of $1,600,000 and cost of goods sold of $1,122,000 for the year ended December 31, 2018. Ending inventory for 2017 and 2018 was $420,000 and $460,000, respectively. Esquire's inventory turnover for 2018 is:

2.55

Income statement: 2018 Sales $ 2,500,000 Cost of goods sold 1,300,000 Net income 200,000 Balance sheets: 2018 2017 Accounts receivable $ 300,000 $ 200,000 Total assets 2,000,000 1,800,000 Total shareholders' equity 900,000 700,000 The return on shareholders' equity for 2018 is:

25%

The Stibbe Construction Company switched from the completed contract method to the percentage-of-completion method of accounting for its long-term construction contracts. This is an example of

A change in accounting principle.

For a manufacturing company, each of the following items would be considered nonoperating income for income statement purposes except:

Cost of goods sold.

Earnings per share should be reported for each of the following income statement captions except:

Operating income.

The application of intraperiod income taxes requires that income taxes be apportioned to each of the following items except:

Operating income.

Which of the following captions would more likely be found in a multiple-step income statement?

Operating income.

Which of the following items would not be included as a cash flow from operating activities in a statement of cash flows?

Purchase of equipment.

Access the FASB Accounting Standards Codification at the FASB website (asc.fasb.org). Determine the specific citation for each of the following items: Required: 1. The calculation of the weighted average number of shares for basic earnings per share purposes. 2. The alternative formats permissible for reporting comprehensive income. 3. The classifications of cash flows required in the statement of cash flows.

Requirement 1: 260-10-55-2 Requirement 2: 220-10-45-1 Requirement 3: 230-10-45-1

An item typically included in the income from continuing operations section of the income statement is:

Restructuring costs.