CH15 - 1. The most recent comparative balance sheet of...

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1. The most recent comparative balance sheet of Benefield Corporation appears below: Which of the following classifications of changes in balance sheet accounts as sources and uses is correct? A) The change in Property, Plant, and Equipment is a source; The change in Long-Term Debt is a use B) The change in Property, Plant, and Equipment is a use; The change in Long-Term Debt is a source C) The change in Property, Plant, and Equipment is a source; The change in Long-Term Debt is a source D) The change in Property, Plant, and Equipment is a use; The change in Long-Term Debt is a use 2. Demagistris Corporation's balance sheet and income statement appear below:
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Cash dividends were $22. The company sold equipment for $14 that was originally purchased for $6 and that had accumulated depreciation of $4. The net cash provided by (used by) financing activities for the year was: A) ($21) B) ($22) C) $5 D) ($38) Feedback: -$22 (cash dividends) - $21 (decrease in bonds payable) + $5 (increase in common stock) = - $38 (cash used by financing activities) 3. Kassebaum Corporation's comparative balance sheet appears below:
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The company's net income (loss) for the year was $13,000 and its cash dividends were $1,000. The total dollar amount of all of the items that would be classified as sources when compiling a simplified statement of cash flows is: A) $6,000 B) $35,000 C) $36,000 D) $42,000 Feedback: $13,000 (net income) + $23,000 (increase in accumulated depreciation) + $1,000 (increase in accounts payable) + $3,000 (increase in notes payable) + $2,000 (increase in common stock) = $42,000 (sources of cash) 4. Ferron Corporation's net cash provided by operating activities was $81; its income taxes were $36; its capital expenditures were $34; and its cash dividends were $15. The company's free cash flow was: A) $68 B) $32 C) -$13 D) $166 Feedback: $81 (net cash provided by operating activities) - $34 (cash used for capital expenditures) - $15 (cash dividends) = $32 (free cash flow) 5. Burgett Corporation's balance sheet and income statement appear below:
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Cash dividends were $41. The company sold equipment for $15 that was originally purchased for $4 and that had accumulated depreciation of $4. The net cash provided by (used by) financing activities for the year was: A) ($1) B) ($41) C) $2 D) ($40) Feedback: -$1 (decrease in bonds payable) - $41 (cash dividends) + $2 (increase in common stock) = -$40 (net cash used by financing activities) 6. Spanner Company recorded the following events last year: On the statement of cash flows, some of these events are classified as operating activities, some are
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classified as investing activities, and some are classified as financing activities. Based solely on the information above, the net cash provided by (used in) investing activities on the
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This note was uploaded on 07/13/2010 for the course ACCT 222 taught by Professor Jones during the Spring '08 term at Johnson County Community College.

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CH15 - 1. The most recent comparative balance sheet of...

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