14. Accounts receivable (A/R) arising from sales to customers amounted to S35,00
ID: 2600492 • Letter: 1
Question
14. Accounts receivable (A/R) arising from sales to customers amounted to S35,000 (BI) and S40,000 (EID at the beginning and end of the year, respectively. Net income (NI) reported on the income statement for the year was $150,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is (Cash Flow-OPS) A) $150,000. B) $155,000. C) $185,000. D) $145,000. 15. If a Gain of $15,000 is incurred in selling (for cash) Office Equipment having a Net Book Value of $100,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is (Cash Flow - INV) A) $95,000. B) $115,000. C) $100,000. D) $15,000. 16. The following data are available for Nichols Corporation. Sale of Land Sale of Equipment Issuance of Common Stock Purchase of Equipment Payment of Cash Dividends $200,000 100,000 140,000 60,000 120,000 Net cash provided by investing activities is: (Cash Flow-INV A) $240,000. B) $260,000. C) S300,000. D) $380,000. 17. The following data are available for Cole Company. Increase in Accounts Payable Increase in Bonds Payable Sale of Long Term Investments $120,000 300,000 150,000 180,000 90,000 Issuance of Common Stock Payment of Cash Dividends Net cash provided by financing activities is: (Cash Flow - FIN) A) $270,000. B) $390,000. C) $480,000. D) $510,000.Explanation / Answer
14) Option D
Cash-OPS = Net Income - Increase in Current Assets = $150,000 - (40,000 -35000) = $145,000
15) Option B
Cash-INV = Selling Price = Book Value + Gain = $100,000 + $15,000 = $115,000
16) Option A
Cash- INV = $200,000 (Land) + $100,000(Equipment ) - $60,000 (Purchase of Equipment) = $240,000
17) Option B
CashFlow - FIN = $300,000 + $180,000 - $90,000 = $390,000
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