It also reports $40,000 depreciation expense, $22,500 amortization expense and a $15,000loss on the sale of machinery. Its comparative balance sheets reveal a $225,700 increase inaccounts receivable, $31,600 decrease in accounts payable, $15,000 decrease in prepaidexpenses, and $48,100 decrease in wages payable.What is the net cash flows provided (used)by operating activities using the indirect method?A. ($12,900)B. $57,900C. $50,400D. ($57,900)E. ($50,400)Answer:ABloom’s Taxonomy: AnalyzeAACSB: AnalyticAACSB: CommunicationAICPA BB: Critical ThinkingAICPA BB: IndustryAICPA FN: MeasurementAICPA FN: ReportingDifficulty: MediumLearning Objective: 12-P112-69
Chapter 12 – Reporting and Analyzing Cash Flows[Question]120. Selected information from Doodle Company’s for 2010 is below (in millions):Inventory decreased $6.0Accounts Payable increased by $7.0Cost of goods sold $36.50Salaries Expense $24.0Salaries Payable decreased $6.0Accounts Receivable increased by $10.0Sales $56.4What is the amount of cash received from Doodle’s customers during 2010?A. $66.4B. $10.0C. $46.4D. $19.9E. $56.4Answer:CFeedback: 56.4-10.0 = 46.4Bloom’s Taxonomy: AnalyzeAACSB: AnalyticAACSB: CommunicationAICPA BB: Critical ThinkingAICPA BB: IndustryAICPA FN: MeasurementAICPA FN: ReportingDifficulty: MediumLearning Objective: 12-P5[Question]121. Selected information from Doodle Company’s for 2010 is below (in millions):Inventory decreased $6.0Accounts Payable increased by $7.0Cost of goods sold $36.50Salaries Expense $24.0Salaries Payable decreased $6.0Accounts Receivable increased by $10.0Sales $56.4What is the amount of cash paid for purchases by Doodle during 2010?12-70
Chapter 12 – Reporting and Analyzing Cash FlowsA. $36.5B. $47.5C. $37.5D. $35.5E. $23.5Answer:EFeedback: 36.5-6-7 = 23.5Bloom’s Taxonomy: AnalyzeAACSB: AnalyticAACSB: CommunicationAICPA BB: Critical ThinkingAICPA BB: IndustryAICPA FN: MeasurementAICPA FN: ReportingDifficulty: MediumLearning Objective: 12-P5[Question]122. Selected information from Doodle Company’s for 2010 is below (in millions):Inventory decreased $6.0Accounts Payable increased by $7.0Cost of goods sold $36.50Salaries Expense $24.0Salaries Payable decreased $6.0Accounts Receivable increased by $10.0Sales $56.4What is the amount of cash paid for salaries by Doodle during 2010?A. $4.0B. $6.0C. $24.0D. $30.0E. $18.0Answer:DFeedback: 24+6 = 30Bloom’s Taxonomy: AnalyzeAACSB: AnalyticAACSB: CommunicationAICPA BB: Critical ThinkingAICPA BB: IndustryAICPA FN: MeasurementAICPA FN: ReportingDifficulty: MediumLearning Objective: 12-P512-71
Chapter 12 – Reporting and Analyzing Cash Flows[Question]123. Holly Company’s accounts receivable increased during the year by $8.5 million. It had abad debt expense of $3.0 million, and its allowance for uncollectible accounts increased by$1.5 million.What is the amount of cash received from customers if Holly’s sales were $50.2million?A. $40.2B. $63.5C. $60.2D. $37.2E. $54.2Answer:AFeedback: 50.2-8.5+1.5-3.0 = 40.2Bloom’s Taxonomy: AnalyzeAACSB: AnalyticAACSB: CommunicationAICPA BB: Critical ThinkingAICPA BB: IndustryAICPA FN: MeasurementAICPA FN: ReportingDifficulty: MediumLearning Objective: 12-P512-72
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