2. Accounts receivable arising from sales to customers amounted to $40,000 and $35,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $110,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is
3. Outstanding stock of the Apex Corporation included 20,000 shares of $5 par common stock and 5,000 shares of 6%, $10 par non-cumulative preferred stock. In 2006, Apex declared and paid dividends of $2,000. In 2007, Apex declared and paid dividends of $6,000. How much of the 2007 dividend was distributed to preferred shareholders?
4. These financial statement items are for Snyder Corporation at year-end, July 31, 2010.
Salaries payable $ 2,580
Salaries expense 48,700
Utilities expense 22,600
Accounts payable 4,100
Commission revenue 61,100
Rent revenue 8,500
Long-term note payable 1,800
Common stock 16,000
Accounts receivable 9,780
Accumulated depreciation 6,000
Depreciation expense 4,000
Retained earnings (beginning of the year) 35,200
Prepare an income statement and a retained earnings statement for the year
5. The following data are taken from the financial statements of Prone, Inc. as of the end of the year 2007. The data are in alphabetical order.
Other current liabilities
Income before income taxes
Additional information: The number of average common shares outstanding during the year was 40,000.
Instructions: Compute the following:
(a) Current ratio.
(b) Working capital.
(c) Earnings per share.
(d) Debts to total assets ratio.
6. Menschken Company reported net income of $150,000 for the current year. Depreciation recorded on buildings and equipment amounted to $65,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
End of Year
Beginning of Year
Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.
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