PLEASE HELP!! ASAP!! THANK YOU IN ADVANCE 1. Lenovo has provided the following i

Question

PLEASE HELP!! ASAP!! THANK YOU IN ADVANCE

1. Lenovo has provided the following information pertaining to its recent year of operation:

Net income, $63,000

Accounts receivable increased by $7,000

Unearned Revenue increased by $4,000

Gain on sale of a factory was $8,000

Salaries payable increased by $3,000

Paid $10,000 in dividends to shareholders

Using the indirect method, what was Lenovo’s net cash provided by operating activities?

A) 71,000

B) 55,000

C) 45,000

D) 69,000

2. Aperture Sciences recently scrapped an old robot. The robot’s original cost was $52,000, and its accumulated depreciation was $45,000. The robot was recorded under PP&E. The junkyard paid $8,000 for the robot. How would this transaction affect Aperture Science’s statement of cash flows?

A) Increase net cash from investing activities by $7,000

B) Increase net cash from investing activities by $8,000

C) Decrease net cash from operating activities by $1,000 and Increase net cash from investing activities by $8,000

D) Increase net cash from operating activities by $1,000 and Increase net cash from investing activities by $8,000

3. On December 1st 2015, CBOE holdings declared $1.5M and paid $900,000 worth of dividends. The remaining balance was recorded as a dividend payable. How would this transaction affect CBOE’s statement of cash flows? Assume the beginning balance of dividends payable was 0, and that there were no other declaration and distribution of dividends that year.

A) Decrease net cash from financing activities by 900,000 and increase net cash from operating activities by 600,000

B) Decrease net cash from financing activities by 1,500,000

C) Decrease net cash from operating activities by 600,000 and decrease net cash from financing activities by 900,000

D) Decrease net cash from financing activities by $900,000 and record the remaining balance under the schedule of non-cash activities

E) None of the above

Explanation / Answer

1) Using the indirect method, what was Lenovo’s net cash provided by operating activities

= 63000-7000+4000-8000+3000 = 55000

2) B) Increase net cash from investing activities by $8,000

3) A) Decrease net cash from financing activities by 900,000 and increase net cash from operating activities by 600,000

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