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sure in Financial Reporting - Quiz Time Remaining: 1. (TCO F) Which of the following would not be disclosed within a statement of cash flow? (Points

sure in Financial Reporting - Quiz


Time Remaining:


1. (TCO F) Which of the following would not be disclosed within a statement of cash flow? (Points : 5)
Stock dividends declared
Cash dividends paid
Capital stock issued greater than par value
Purchase and retirement of treasury stock on same day


2. (TCO F) Which of the following is not true? (Points : 5)
The statement of cash flow provides information to help investors and creditors assess the cash and noncash investing and financing transactions during the period.
A company can convert net income to net cash flow utilizing either the direct or indirect method.
When prepaid expenses decrease during a period, expenses on the accrual basis are lower than on the cash basis.
When the accounts receivable balance decreases, cash basis revenues are higher than accrual basis revenues.


3. (TCO F) Glitter Girl, Inc. recognized net income of $136,000 including $24,000 in depreciation expense.
Additional changes from the balance sheet are as follows.
Accounts Receivable $3,000 decrease
Prepaid Expenses $14,500 decrease
Inventory $9,000 increase
Accrued Liabilities $10,000 decrease
Accounts Payable $19,500 increase
Compute the net cash from operating activities based on the above information. (Points : 5)
$178,000
$164,500
$96,500
$94,500


4. (TCO F) Big Dog Builder's, Inc. shows the following as of December 31, 2012.
Acquired 50% of Kitty Corp's common stock for $225,000 cash which was borrowed from Mouse's Bank.
Sold available for sales securities for $852,000
Issued 1,000 of its 12% debenture bonds, due 2017, for $350,000 cash
Paid $160,000 toward bank loan.
Recognized $66,000 net increase in returnable long term customer deposits
Issued 2,000 shares of its preferred stock for land having a fair value of $500,000
Purchased a patent for $140,000 cash
Big Dog's net cash provided by investing activities for 2012 is (Points : 5)
$487,000.
$127,000.
$627,000.
$352,000.


5. (TCO F) Big Dog Builder's, Inc. shows the following as of December 31, 2012.
Acquired 50% of Kitty Corp's common stock for $225,000 cash which was borrowed from Mouse's Bank.
Sold available for sales securities for $852,000
Issued 1,000 of its 12% debenture bonds, due 2017, for $350,000 cash
Paid $160,000 toward bank loan.
Recognized $66,000 net increase in returnable long term customer deposits
Issued 2,000 shares of its preferred stock for land having a fair value of $500,000
Purchased a patent for $140,000 cash
Big Dog's net cash provided by financing activities for 2012 is (Points : 5)
$481,000.
$415,000.
$641,000.
$575,000.


6. (TCO F) Cash flows from operating activities (indirect and direct methods).
Presented below is the income statement of Smiling Tiger, Inc.

Sales $1,020,000
Cost of goods sold 640,000
Gross profit $380,000
Operating expenses 230,000
Income before income taxes 150,000
Income taxes 60,000
Net income $90,000

In addition, the following information related to net changes in working capital is presented.
Debit Credit
Cash $50,000
Accounts receivable 34,500
Inventories $25,000
Salaries payable (operating expenses) 60,000
Accounts payable 450,000
Income taxes payable 12,000

Depreciation expense for the year was $54,000
Deferred tax liability account increased $6,500

Required:
Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows:
(a) using the indirect method.
(b) using the direct method.

(Points : 15)


sure in Financial Reporting - Quiz Time Remaining: 1. (TCO F) Which of the following would not be disclosed within a statement of cash flow? (Points : 5) Stock dividends declared Cash dividends paid Capital stock issued greater than par value Purchase and retirement of treasury stock on same day 2. (TCO F) Which of the following is not true? (Points : 5) The statement of cash flow provides information to help investors and creditors assess the cash and noncash investing and financing transactions during the period. A company can convert net income to net cash flow utilizing either the direct or indirect method. When prepaid expenses decrease during a period, expenses on the accrual basis are lower than on the cash basis. When the accounts receivable balance decreases, cash basis revenues are higher than accrual basis revenues. 3. (TCO F) Glitter Girl, Inc. recognized net income of $136,000 including $24,000 in depreciation expense. Additional changes from the balance sheet are as follows. Accounts Receivable $3,000 decrease Prepaid Expenses $14,500 decrease Inventory $9,000 increase Accrued Liabilities $10,000 decrease Accounts Payable $19,500 increase Compute the net cash from operating activities based on the above information. (Points : 5) $178,000 $164,500 $96,500 $94,500 4. (TCO F) Big Dog Builder's, Inc. shows the following as of December 31, 2012. €€€-€ Acquired 50% of Kitty Corp's common stock for $225,000 cash which was borrowed from Mouse's Bank. €€€-€ Sold available for sales securities for $852,000 €€€-€ Issued 1,000 of its 12% debenture bonds, due 2017, for $350,000 cash €€€-€ Paid $160,000 toward bank loan. €€€-€ Recognized $66,000 net increase in returnable long term customer deposits €€€-€ Issued 2,000 shares of its preferred stock for land having a fair value of $500,000 €€€-€ Purchased a patent for $140,000 cash Big Dog's net cash provided by investing activities for 2012 is (Points : 5) $487,000. $127,000. $627,000. $352,000.
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5. (TCO F) Big Dog Builder's, Inc. shows the following as of December 31, 2012. €€€-€ Acquired 50% of Kitty Corp's common stock for $225,000 cash which was borrowed from Mouse's Bank. €€€-€ Sold available for sales securities for $852,000 €€€-€ Issued 1,000 of its 12% debenture bonds, due 2017, for $350,000 cash €€€-€ Paid $160,000 toward bank loan. €€€-€ Recognized $66,000 net increase in returnable long term customer deposits €€€-€ Issued 2,000 shares of its preferred stock for land having a fair value of $500,000 €€€-€ Purchased a patent for $140,000 cash Big Dog's net cash provided by financing activities for 2012 is (Points : 5) $481,000. $415,000. $641,000. $575,000. 6. (TCO F) Cash flows from operating activities (indirect and direct methods). Presented below is the income statement of Smiling Tiger, Inc. Sales $1,020,000 Cost of goods sold 640,000 Gross profit $380,000 Operating expenses 230,000 Income before income taxes 150,000 Income taxes 60,000 Net income $90,000 In addition, the following information related to net changes in working capital is presented. Debit Cash $50,000 Accounts receivable 34,500 Inventories Salaries payable (operating expenses) 60,000 Accounts payable Income taxes payable 12,000 Depreciation expense for the year was $54,000 Deferred tax liability account increased $6,500 Required:
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1. (TCO F) Which of the following would not be disclosed within a statement of cash flow? (Points : 5)
Stock dividends declared
Cash dividends paid
Capital stock issued greater than par value...

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