A2301-Sp10-FinalExam-FormASolutions (1)

A2301-Sp10-FinalExam-FormASolutions (1) - Name: _ Acct 2301...

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Name: _____________________________ Acct 2301 Spring 2010 FINAL EXAM – FORM A Instructions – Please read carefully. This exam contains 36 multiple-choice questions. Please select the best answer for each question and record your selection in the appropriate space on your scantron. Please circle the answer on your exam because you will not receive a copy of your scantron. Please indicate your exam form by writing “A” in the top right hand corner of your scantron. Minor rounding ( $5) is acceptable for PV problems. 1. Richmoon Corporation provided the following account balance information for years ended 2008 and 2009: Account Title 12/31/08 12/31/09 Cash $5,500 $9,000 Accounts Receivable 15,000 12,000 Inventory 3,000 7,000 20,000 25,000 Accounts Payable 6,400 2,000 Net income for 2009 was $15,000, which included $3,000 of depreciation expense and a loss of $1,200 from the sale of fixed assets. What is the company’s net cash flows from operating activities for 2009 a. $13,800 b. $18,200 c. $22,600 d. $15,800 e. None of the above 2. Boothe Manufacturing paid the following during 2009: Cash to suppliers / vendors - $50,000 Cash for new equipment - $125,000 Cash to pay long-term debt - $30,000 Cash paid for dividends - $10,000 Cash paid for manufacturing facility rent - $36,000 What is the amount of cash used by investing activities for 2009? a. $50,000 b. $86,000 c. $96,000 d. $125,000 e. None of the above 3. Rosie-Lee Company provided the following account balance information for the years 2008 and 2009:
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Account Title 12/31/08 12/31/09 Accounts Payable $72,000 $90,000 Long-term Debt Payable $108,000 $90,000 Common Stock $180,000 $288,000 Retained Earnings $162,000 $248,400 The company reported net income of $122,400 for 2009. What is the amount of cash flow from financing activities for 2009? a. $54,000 b. $90,000 c. $176,400 d. ($18,000) e. None of the above 4. Cash outflows from operating activities come from a. Payment of raw materials b. Collection of sales revenue c. Gains on the sale of operating equipment d. Issuing capital stock e. Issuing long-term debt 5. Howard Company had a net increase in the cash account balance of $10,000 for 2009. Net cash inflow from investing activities was $20,000 and net cash from financing was an outflow of $35,000. What was the company’s net cash inflow from operating activities for the year? a. $15,000 b. $25,000 c. ($45,000) d. $55,000 e. None of the above 6. Hobart Company experienced the following during 2009: Sold common stock for $50,000 Paid dividends of $20,000 Sold equipment for $35,000 Issued long-term debt of $25,000 What is the net cash flow for financing activities? a.
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A2301-Sp10-FinalExam-FormASolutions (1) - Name: _ Acct 2301...

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