48. As of lanuary 1 of the current year, the Gunner Company had accounts receiva

Question

48. As of lanuary 1 of the current year, the Gunner Company had accounts receivables of $50,000. The sales for Januan February, and March were as follows: $120,000, $140,000, and $150,000, respectively. Of each month's sales, 20% are for cash. Of the remaining 80% (the credit sales), 60% are collected in the month of sale, with the remaining 40% collected in the following month. What is the accounts receivable balance as of March 31? a. $72,000 b. $48,000 c. $58,720 d. $60,000 49. Given the following data: Work in process beginning Work in process, ending Direct labor costs Cost of goods manufactured 4,000 8,000 actory overhead Direct materials used is a. $2,000 b. $4,000 c.$8,000 d. $14,000 50. The following information is available from the current period financial statements Net income Depreciation expense Increase in accounts receivable Decrease in accounts payable $165,000 28,000 16,000 21,000 The net cash flow from operating activities using the indirect method is a. $230,000 b. $188,000 c. $198,000 d. $156,000 51. Parker Company owns 83% of the outstanding stock of Tadeo Company. Parker Company is referred to as the a. parent b. minority interest c. affiliate d. subsidiary 52. Net income for the year was $45,500. Accounts receivable increased by $5,500 and account payable increased by $11,200. Under the indirect method, the cash flow from operations is a. $51,200 b. $45,500 c. $62,200 d. $28,800

Explanation / Answer

48) Accounts receivable as on March 31 150,000*80% is credit sales out of which 40% will be collected next month 150,000*80%*40% 48000 answer option b ) $ 48,000 49) cost of goods manufactured 8000 Add :work in process , ending 20,000 less:work in process,beginning -14,000 manufacturing cost 14000 less:direct labor costs -4,000 Factory overhead -8,000 Direct materials 2000 option a ) $2,000 answer 50) Net cash flow from operating activities net income for the year 165,000 Add :depreciation expense 28,000 increase in accounts receivable -16,000 decrease in accounts payable -21,000 Net cash flow from operating activities 156,000 option d ) $156000 answer 51) option a ) parent 52) Net cash flow from operating activities net income for the year 45,500 increase in accounts receivable -5,500 increase in accounts payable 11,200 Net cash flow from operating activities 51,200 option a ) $ $51,200 answer

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