ACG6027 - Quiz 4
A company reported cost of goods sold of $1,520,000 for the year. During the year, inventory decreased from a $92,000 beginning balance to a $75,000 ending balance, and accounts payable decreased from a $48,000 beginning balance to a $38,000 ending balance. How much is the cash paid for merchandise purchased during the year? Select one: A. $1,513,000 B. $1,527,000 C. $1,503,000 D. $1,547,000
A. $1,513,000
The following amounts have been taken from the recent financial statements for Waron Industries: Current liabilities ($1,210,000) Cash from operations ($3,650,000) Expenditures on PPE ($2,940,000) Dividends (cash) ($150,000) Which of the following amounts is the free cash flow for Waron Industries? Select one: A. $2,440,000 B. $710,000 C. $560,000 D. $(650,000)
B. $710,000
Which of the following is a cash equivalent for purposes of preparing a statement of cash flows? Select one: A. Inventory B. Investment in a money market fund C. Accounts receivable D. Investment in subsidiary company common stock
B. Investment in a money market fund
In a statement of cash flows, interest paid to creditors is classified as a cash flow from: Select one: A. Investing activities B. Operating activities C. Trading activities D. Financing activities
B. Operating activities
Nacho Company has an accrual basis net income of $175,000 and the following related items: Depreciation expense $85,000 Accounts receivable decrease 15,000 Inventory increase 24,000 Accounts payable increase 18,000 How much is Nacho's net cash flow from operating activities? Select one: A. $269,000 B. $317,000 C. $251,000 D. $260,000
A. $269,000
A firm's cash flow from financing activities includes: Select one: A. Cash paid to reacquire treasury stock B. Cash received as interest income C. Cash paid for merchandise purchased D. Cash received from sale of investment in bond
A. Cash paid to reacquire treasury stock
The statement of cash flows explains changes in a firm's: Select one: A. Cash, cash equivalents, and accounts receivable B. Cash on hand and cash in the bank C. Cash and cash equivalents D. Working capital
C. Cash and cash equivalents
A company reported annual sales revenue of $950,000. During the year accounts receivable increased from a $56,000 beginning balance to a $64,000 ending balance. Accounts payable increased from a $44,000 beginning balance to a $46,000 ending balance. How much is cash received from customers for the year? Select one: A. $960,000 B. $940,000 C. $958,000 D. $942,000
D. $942,000
A firm's net cash flow from operating activities includes: Select one: A. Cash received from sale of equipment B. Cash received from issuance of common stock C. Cash received as payment of loan from a borrower D. Cash received from sale of merchandise
D. Cash received from sale of merchandise
A firm's cash flows from investing activities include: Select one: A. Cash paid to retire bonds payable B. Cash paid as dividends C. Cash received from the rendering of services to customers D. Cash received from the sale of a plant asset
D. Cash received from the sale of a plant asset