Suppose that Morgan Corporation produced and sold 4800 laptop computers during

Suppose that morgan corporation produced and sold

This preview shows page 34 - 37 out of 63 pages.

112.Suppose that Morgan Corporation produced and sold 4,800 laptop computersduring 2017. It reported $130,000 cash provided by operating activities. In order tomaintain production at 4,800 laptops, Morgan invested in $8,600 in equipment. Morganpaid $1,400 in dividends. What is Morgan’s free cash flow? a.$120,000b.$140,000c.$137,000d.$130,000Ans: A, LO: 2, Bloom: AN, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Measurement, AICPA PC:Problem Solving, IMA: Business EconomicsSolution: $130,000 $8,600 $1,400 =$120,000(Cash fr. oper. act – equip. inv. – div.) 13.The following information is available for Cooke Corporation: FOR INSTRUCTOR USE ONLY
Image of page 34
2-35 A Further Look at Financial Statements (in million) Cash receipts from operating activities $780 Cash payments from operating activities $240 Net cash used by investing $210 Net cash provided by financing $750 Net increase in cash and equivalents ? Cash and equivalents at start of year $550 Cash and equivalents at year-end ? What is the net increase in cash and equivalents? 114.The following information is available for Cooke Corporation:(in million)Cash receipts from operating activities$780Cash payments from operating activities$240Net cash used by investing$210Net cash provided by financing$750Net increase in cash and equivalents?Cash and equivalents at start of year$550Cash and equivalents at year-end?What is the cash and equivalents amount at year-end? 115.If Morris Corporation has a negative $131 million free cash flow, which of thefollowing statements is most likely true? FOR INSTRUCTOR USE ONLY
Image of page 35
2-36 Test Bank for Survey of Accounting , First Edition Answers to Multiple Choice Questions 26. d 48. a 70. a 92. d 114. c 27. c 49. d 71. b 93. a 115. d 28. d 50. a 72. c 94. b 29. d 51. c 73. b 95. c 30. a 52. c 74. a 96. d 31. b 53. b 75. b 97. c 32. a 54. d 76. c 98. c 33. d 55. c 77. a 99. b 34. a 56. c 78. c 100. c 35. d 57. c 79. b 101. a 36. b 58. d 80. b 102. a 37. d 59. c 81. c 103. a 38. b 60. b 82. c 104. a 39. c 61. b 83. b 105. a 40. c 62. c 84. b 106. c 41 d 63. a 85. b 107. d 42. d 64. d 86. a 108. d 43. d 65. b 87. d 109. c 44. b 66. a 88. a 100. a 45. b 67. d 89. c 111. a 46. b 68. d 90. d 112. a 47. c 69. d 91. c 113. b BRIEF EXERCISES BE. 116
Image of page 36
Image of page 37

You've reached the end of your free preview.

Want to read all 63 pages?

  • Fall '20
  • Erin egeland
  • Balance Sheet, Generally Accepted Accounting Principles

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes