13. The following items relate to the preparation of a statement of cash flows:
ID: 2596709 • Letter: 1
Question
13. The following items relate to the preparation of a statement of cash flows:
2009
2008
2009
Cash
$150,000
$100,000
Net sales
$3,200,000
Dividends payable
35,000
0
CGS
(2,500,000)
Common stock
600,000
450,000
Expenses
(500,000)
Retained earnings
280,000
165,000
Net income
$ 200,000
Capital stock was sold to provide additional working capital. Under financing activities, cash dividend payments during 2009 amounted to
A: $115,000
B: $ 85,000
C: $ 50,000
D: $ 35,000
14. Which of the following cash flows per share should be reported in a statement of cash flows?
A: Basic cash flows per share only.
B: Diluted cash flows per share only.
C: Both basic and diluted cash flows per share.
D: Cash flows per share should not be reported.
15. On February 1, 2010, Kew Corp., a newly formed company, had the following stock issued and outstanding:
Common stock, no par, $1 stated value, 10,000 shares originally issued for $15 per share.
Preferred stock, $10 par value, 3,000 shares originally issued for $25 per share.
Kew’s February 1, 2010 statement of stockholders’ equity should report
Common stock
Preferred stock
Additional
paid-in capital
A.
$150,000
$30,000
$ 45,000
B.
$150,000
$75,000
$0
C.
$ 10,000
$75,000
$140,000
D.
$ 10,000
$30,000
$185,000
A: A.
B: B.
C: C.
D: D.
2009
2008
2009
Cash
$150,000
$100,000
Net sales
$3,200,000
Dividends payable
35,000
0
CGS
(2,500,000)
Common stock
600,000
450,000
Expenses
(500,000)
Retained earnings
280,000
165,000
Net income
$ 200,000
Explanation / Answer
13 Cash dividend payments during 2009 = (165000+200000)-280000-35000= 50000 Option C is correct 14 Cash flows per share should not be reported. 15 Common stock 10000 Preferred stock 30000 Additional paid-in capital 185000 Option D is correct
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