Reference no: EM131814315
1. A company delivered $10,000 of goods to a customer that agreed to pay cash within 30 days. The goods had cost $8,000 to manufacture.
Which of the following items would be increased by this sales transaction? (check all that apply)
Cash from Operations
Revenue
Cost of Goods Sold
Current Assets
Accounts Payable
2. A company took delivery of $50,000 of new inventory and agreed to pay cash to the supplier within 30 days.
Which of the following items would be increased by this inventory purchase transaction? (check all that apply)
Accounts Receivable
Cost of Goods Sold
Accounts Payable
Total Assets
Retained Earnings
3. A company collected $100,000 cash from a customer who both received and was billed for the goods last quarter.
Which of the following items would be increased by this cash collection transaction? (check all that apply)
Cash from Operations
Current Assets
Accounts Receivable
Cash
Revenue
4. A company collected $10,000 cash from a customer as a deposit for goods that will be shipped next quarter.
Which of the following items would be increased by this cash collection transaction? (check all that apply)
Revenue
Total Liabilities
Accounts Receivable
Total Assets
Cash from Operations
5. A company received $100,000 cash from issuing 10,000 shares of $4 par value stock.
Which of the following items would be increased by this stock issuance transaction? (check all that apply)
Cash from Operations
Revenue
Total Liabilities
Total Assets
Additional Paid in Capital
6. A company received $75,000 cash from a bank loan that must be repaid in three years.
Which of the following items would be increased by this bank loan transaction? (check all that apply)
Interest Payable
Current Assets
Notes Payable
Cash from Investing
Revenue
7. A company declared $500,000 of dividends that will be paid two months from now.
Which of the following items would be increased by this dividend declaration transaction? (check all that apply)
Current Assets
Net Income
Dividend Expenses
Cash from Operations
Dividends Payable
8. A company paid $50,000 to its insurance company for fire insurance coverage over the next year.
Which of the following items would be increased by this insurance prepayment transaction? (check all that apply)
Current Liabilities
Prepaid Insurance
Net Income
Total Assets
Insurance Expense
9. At the end of the quarter, a company did an adjusting entry to record the fact that $1,000 of Prepaid Advertising had been used up during the quarter.
Which of the following items would be increased by this advertising adjusting entry? (check all that apply)
Cash from Operations
Prepaid Advertising
Cost of Goods Sold
Advertising Expense
Total Liabilities
10. A company borrowed $500,000 cash from a bank and used it to purchase $500,000 of new manufacturing equipment.
Which of the following items would be increased by the bank loan and equipment purchase transactions? (check all that apply)
Notes Payable
Total Assets
Inventory
Cash from Investing
Cash from Financing
11. At the end of the quarter, a company did an adjusting entry to record $5,000 of depreciation on the fleet of automobiles used by the sales force.
Which of the following items would be increased by this depreciation adjusting entry? (check all that apply)
Cost of Goods Sold
Total Assets
Depreciation Expense
Cash from Operations
Retained Earnings
12. A company sold a piece of manufacturing equipment for $30,000 cash. The equipment had been listed on the balance sheet at a net book value of $25,000, so the company recorded a gain on sale of equipment of $5,000.
Which of the following items would be increased by this equipment sale transaction? (check all that apply)
Net Income
Cash from Operations
Total Assets
Cash from Investing
Equipment
During the quarter ended 3/31/2015, Clarke Biscuits Inc. collected $100 of cash from customers, paid $60 of cash to suppliers, paid $30 of cash to employees and other creditors, and recorded a $5 loss on sale of equipment. There were no other cash flows related to operating activities.
What was Clarke's Cash Flow from Operations during the quarter ended 3/31/2015?
$15
$10
$20
$5
$25
13. During the quarter ended 3/31/2015, Clarke Biscuits Inc. collected $100 of cash from customers, paid $60 of cash to suppliers, paid $30 of cash to employees and other creditors, and recorded a $5 loss on sale of equipment. There were no other cash flows related to operating activities.
What was Clarke's Cash Flow from Operations during the quarter ended 3/31/2015?
$15
$10
$20
$5
$25
14. During 2015, Rindal Vinyards Inc. had Revenue of $1000, Depreciation and Amortization Expense of $100, Interest Expense of $100, and Tax Expense of $50. All other Expenses were $400. What was Rindal Vinyards' EBITDA for 2015?
$250
$600
$400
$500
$1000
15. Geller Florist Inc. had the following transactions during 2015:
Purchased a $200,000 warehouse with $50,000 cash and a $150,000 mortgage from a bank.
Raised $100,000 from selling new shares of stock to investors. The cash was used to buy land to grow tulips.
Sold an old building for $50,000 (and suffered a loss on sale of $5,000) and used the cash to buy a new truck.
What is the net impact of these transactions on Geller's Cash from Investing Activities during 2015?
$(50,000)
$(150,000)
$(300,000)
$(295,000)
$(145,000)
16. Stewart Export Co. had the following Statement of Cash Flows for the year ended 03/31/15:
($ millions)
Year ended 3/31/15
Net Income
1100
Depreciation
200
Loss on sale of equipment
400
Chg in Accounts Receivable
350
Chg in Inventory
(200)
Chg in Other Assets
100
Chg in Accounts Payable
(50)
Chg in Other Payables
150
Net Cash from Operations
2050
Capital Expenditures
(1200)
Sale of Equipment
700
Net Cash from Investing
(500)
What was the book value of the equipment Stewart sold during the year ended 03/31/15?
$1,100
$100
$1,300
$300
$700
5.
Little Scuba Pty had the following line item on its 12/31/2014 Balance Sheet:
12/31/2014
Inventory
$20,000
Little Scuba's Statement of Cash Flows had the following line item:
2014
Change in Inventory
$6,000
Assume that the company made no acquisitions or divestitures and that all operations are in Australia. How much Inventory did Little Scuba have on 12/31/2013?
$26,000
$14,000
$0
$6,000
$20,000
17. A new accountant, Tia Count, put together a preliminary version of Medina Co.'s financial statements. Medina's Net Income was $500, its Depreciation Expense was $100, and its Cash Flow from Operations was $70. The CEO found an error that Tia made in computing straight-line Depreciation Expense, which should have been $150. What is Medina's Cash Flow from Operations after fixing this mistake? (you can ignore taxes)
$70
$220
$120
$50
$350
18. Josey Doakes was reading the balance sheet of Gogoldze Inc. when she spilled grape juice on it. After the juice spill, the balance sheet looked like this:
($ millions)
12/31/2015
Cash
90
Accounts Receivable
210
Inventory
410
Other Current Assets
grape
Current Assets
juice
Net Property, Plant, & Equipment
1,080
Total Assets
grape
juice
Accounts Payable
115
Other Current Liabilities
260
Current Liabilities
375
Long-term Liabilities
860
Common Stock
50
Additional Paid-in-Capital
300
Retained Earnings
285
Total Liabilities and SE
1,870
What was Gogoldze Inc.'s Other Current Assets at 12/31/2015?
$80
$710
$790
$120
$370
19. Alejandro Alvera of Alvear Corp was reading the financial statements of Olivas Medical Supply Company to decide whether he wanted to try to acquire the company. He noticed some mistakes in the Olivas Income Statement:
($ millions)
Year ended 12/31/2015
Sales revenue
$1600
Interest Revenue
50
Total Revenue
1650
Cost of Goods Sold
(800)
Gross Profit
850
SG&A Expense
(400)
Interest Expense
(50)
Operating Income
400
Gain on sale of equipment
200
Pre-tax income
600
Income Tax Expense
(216)
Net Income
384
What is Olivas' Operating Income for the year ended 12/31/2015 after correcting the mistakes?
$450
$600
$350
$400
$550