38. Mavis Company's statement of cash flows showed net cash provided by operating activities of $47,000 in 2014. Mavis reported an increase in accounts payable of $6,000, an increase in inventory of $2,000, depreciation expense of $3,000, and dividends paid of $8,000. Mavis's net income for 2014 was A.$48,000B.$40,000C.$39,000D.$32,000DDBBInventory |25,00020,000145,000A_________A/P|_________A19,00025,000BSolve for A first, then B. If your confused about the setup think about the entries.
____ 39. When reading the Cash Inflows from Operating Activities portion of the statement of cash flows using the direct method, you would expect to find which of the following? I.Dividends from Available for Sale SecuritiesII.Collection of Principal of loans made to suppliersIII.Interest on held to maturity bondsIV.Cash investments by stockholders____ 40. Cho Company sold equipment for $5,000. The equipment originally cost $16,000 and had accumulated depreciation of $12,000. Which of the following statements is correct regarding the statement of cash flows prepared using the indirect method? ____ 41. The following information is available for Allsport Company. What amount was paid for merchandise during the year 2014? Cost of goods sold $545,000 Merchandise inventory, 12/31/13 105,000 Merchandise inventory, 12/31/14 112,000 Accounts Payable 12/31/13 98,500 Accounts Payable 12/31/14 101,300 ____ 42. Turtleback, a campus newspaper, generates revenue from advertisements, which are always received in advance. The company’s Unearned Advertising Revenue changed from $14,600 on January 1, 2014 to $11,300 on December 31, 2014. The company reported Advertising Revenue of $187,000 in its 2014 income statement. Determine the cash flow from advertisers during 2014. A.$183,700B.$161,100C.$190,300D.$212,900____ 43. The net cash provided by operating activities in Soho Company's statement of cash flows for 2015 was $115,000. For 2015, depreciation on plant assets was $45,000, amortization of patent was $8,000, and cash dividends paid on common stock was $54,000. Based only on the information given above, Soho’s net income for 2015 was BDDABCarry Value = Original Cost - Accumulated DepreciationGain/(Loss) = Cash Received - Carry ValueEntry 1:CashUnearned Ad RevEntry 2:Unearned RevRevenue Use entries to set up T-charts, solve for cash
____ 44. The following information was taken from the 2015 financial statements of Jenny Corporation: Inventory, January 1, 2015 $ 90,000 Inventory, December 31, 2015 120,000 Accounts payable, January 1, 2015 75,000 Accounts payable, December 31, 2015 120,000 Sales Revenue 600,000 Cost of goods sold 450,000 Assuming all inventory is purchased on credit, what amount should Jenny report as cash payments to suppliers for 2015 using the direct method of cash flows? ____
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