Cash Flows Reporting | Test Bank 10th

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TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) The statement of cash flows reports cash receipts (inflows) and cash payments (outflows) during a period.

⊚ true
⊚ false

2) The statement of cash flows reports cash flows from three activities: operating, investing, and financing.

⊚ true
⊚ false

3) To be classified as a cash equivalent, the only criterion an item must meet is that it must be readily convertible to a liquid asset.

⊚ true
⊚ false

4) The statement of cash flows explains the difference between the beginning and ending balances of cash and cash equivalents.

⊚ true
⊚ false

5) Cash flow statements help users decide whether a company has enough cash to pay its debts.

⊚ true
⊚ false

6) A cash equivalent must be readily convertible to a known amount of cash and must be sufficiently close to its maturity so its market value is unaffected by interest rate changes.

⊚ true
⊚ false

7) Cash receipts and cash payments are classified in one of three categories: operating investing, or financing activities.

⊚ true
⊚ false

8) Financing activities include (a) the purchase and sale of long-term assets, (b) the purchase and sale of short-term investments, and (c) lending and collecting money for notes receivable.

⊚ true
⊚ false

9) Investing activities include (a) the purchase and sale of long-term assets, (b) the purchase and sale of short-term investments, and (c) lending and collecting money for notes receivable.

⊚ true
⊚ false

10) Cash paid for inventory is an operating activity.

⊚ true
⊚ false

11) The purchase of plant assets is classified as a financing activity.

⊚ true
⊚ false

12) The purchase of plant assets is classified as an investing activity.

⊚ true
⊚ false

13) Receipts of dividend revenue and interest revenue are classified as investing activities.

⊚ true
⊚ false

14) The payment of cash dividends to shareholders is classified as a financing activity.

⊚ true
⊚ false

15) The purchase of a long-term asset using a long-term note payable is an example of a noncash investing and financing activity, which should be disclosed in a note or separate schedule.

⊚ true
⊚ false

16) Conversion of preferred stock to common stock is disclosed in the financing section of the statement of cash flows.

⊚ true
⊚ false

17) A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

⊚ true
⊚ false

18) A purchase of land in exchange for a long-term note payable must be disclosed as a noncash investing and financing activity.

⊚ true
⊚ false

19) A noncash investing activity should be disclosed in a note to the statement of cash flows or on a separate schedule.

⊚ true
⊚ false

20) A company acquired equipment for $150,000 by signing a $150,000 note payable. The $150,000 is reported as a cash outflow in the financing section of the statement of cash flows.

⊚ true
⊚ false

21) A purchase of land in exchange for shares of stock is disclosed at the bottom of the statement of cash flows or in a note to the statement.

⊚ true
⊚ false

22) Information about cash flows influences decisions and can help users decide whether a company has enough cash to pay its debts.

⊚ true
⊚ false

23) The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period net income.

⊚ true
⊚ false

24) Managers review cash flows when making business decisions.

⊚ true
⊚ false

25) Managers primarily use the statement of cash flows to determine the amount of the company’s assets relative to the amount of its debt.

⊚ true
⊚ false

26) A measure that helps estimate the amount and timing of cash flows from operating activities is the cash flow on total assets ratio.

⊚ true
⊚ false

27) The cash flow on total assets ratio measures actual cash flows and is not affected by accounting recognition and measurement.

⊚ true
⊚ false

28) Cash flow amounts and their timing should be considered when planning and analyzing operating activities.

⊚ true
⊚ false

29) The cash flow on total assets ratio is computed by dividing cash flows from operations by average total assets.

⊚ true
⊚ false

30) The cash flow on total assets ratio is computed by dividing average total assets by operating income.

⊚ true
⊚ false

31) The cash flow on total assets ratio is affected by accounting recognition and measurement.

⊚ true
⊚ false

32) To effectively evaluate cash flows, we separately analyze investing, financing, and operating activities.

⊚ true
⊚ false

33) The cash flows from operating activities section of an indirect method statement of cash flows begins with net income or loss.

⊚ true
⊚ false

34) The net cash amount provided by operating activities is identical under both the direct and indirect methods.

⊚ true
⊚ false

35) The reporting of financing activities is identical under the direct method and indirect method.

⊚ true
⊚ false

36) The reporting of investing activities is identical under the direct method and indirect method.

⊚ true
⊚ false

37) The direct method separately lists operating cash receipts (such as cash received from customers) and operating cash payments (such as cash paid for inventory).

⊚ true
⊚ false

38) Nearly all companies report operating cash flows using the direct method.

⊚ true
⊚ false

39) Information to prepare the statement of cash flows comes from three sources: (1) comparative balance sheets, (2) the current income statement, and (3) additional information.

⊚ true
⊚ false

40) The direct method for computing and reporting net cash flows from operating activities involves adjusting the net income figure to obtain net cash provided or used by operating activities.

⊚ true
⊚ false

41) Because cash and cash equivalents are combined, the statement of cash flows does not report transactions between cash and cash equivalents.

⊚ true
⊚ false

42) The indirect method reports net income and then adjusts it for items that do not affect cash to obtain net cash provided or used by operating activities.

⊚ true
⊚ false

43) The direct method separately lists each major item of operating cash receipts and cash payments.

⊚ true
⊚ false

44) Companies can use either the direct or indirect method to prepare the operating section of the statement of cash flows.

⊚ true
⊚ false

45) Cash flows are essentially the same as net income because they are both measured using accrual accounting principles.

⊚ true
⊚ false

46) When preparing the operating activities section of the statement of cash flows using the indirect method, expenses with no cash outflows are added back to net income.

⊚ true
⊚ false

47) When preparing the operating activities section of the statement of cash flows using the indirect method, revenues and gains with no cash inflows are added back to net income.

⊚ true
⊚ false

48) When preparing the operating activities section of the statement of cash flows using the indirect method, expenses and losses with no cash outflows are added back to net income.

⊚ true
⊚ false

49) When preparing the operating activities section of the statement of cash flows using the direct method, revenues and gains with no cash inflows are added back to net income.

⊚ true
⊚ false

50) When preparing the operating activities section of the statement of cash flows using the direct method, expenses and losses with no cash outflows are added back to net income.

⊚ true
⊚ false

51) When preparing the operating activities section of the statement of cash flows using the indirect method, a decrease in accounts receivable is subtracted from net income.

⊚ true
⊚ false

52) When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in noncash current assets are subtracted from net income.

⊚ true
⊚ false

53) When preparing the operating activities section of the statement of cash flows using the indirect method, decreases innoncash current assets are added back to net income.

⊚ true
⊚ false

54) When preparing the operating activities section of the statement of cash flows using the indirect method, an increase in income taxes payable is added back to net income.

⊚ true
⊚ false

55) When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current liabilities are addedback to net income.

⊚ true
⊚ false

56) When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current liabilities are subtracted from net income.

⊚ true
⊚ false

57) When preparing the operating activities section of the statement of cash flows using the indirect method, depreciation is subtracted from net income.

⊚ true
⊚ false

58) When preparing the operating activities section of the statement of cash flows using the indirect method, depreciation is added back to net income.

⊚ true
⊚ false

59) The gain or loss from retirement of notes payable is reported under cash flows from operating activities on the statement of cash flows using the indirect method.

⊚ true
⊚ false

60) Financing activities include cash inflows from dividend revenue.

⊚ true
⊚ false

61) Investing activities include receiving cash dividends from stock investments.

⊚ true
⊚ false

62) Investing activities include transactions and events that affect long-term liabilities, such as cash received from issuing debt.

⊚ true
⊚ false

63) Financing activities include receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks.

⊚ true
⊚ false

64) Financing activities include receiving cash from issuing debt and paying cash dividends to shareholders.

⊚ true
⊚ false

65) The payment of cash dividends never changes the balance of retained earnings.

⊚ true
⊚ false

66) Equipment costing $100,000 with accumulated depreciation of $40,000 is sold at a loss of $10,000. This implies that $40,000 cash was received from the sale.

⊚ true
⊚ false

67) Equipment costing $200,000 with accumulated depreciation of $160,000 is sold at a loss of $10,000. This implies that $30,000 cash was received from the sale.

⊚ true
⊚ false

68) A spreadsheet, also called a worksheet, can help organize the information needed to prepare a statement of cash flows.

⊚ true
⊚ false

69) On a spreadsheet used to prepare the operating activities section of the statement of cash flows, depreciation expense does not require an entry in the Analysis of Changes columns because it is a noncash item.

⊚ true
⊚ false

70) When using a spreadsheet to prepare the statement of cash flows, a decrease in accounts payable is entered in the Analysis of Changes columns with a debit in the statement of cash flows section and a credit in the balance sheet section.

⊚ true
⊚ false

71) When using a spreadsheet to prepare the statement of cash flows, an increase in accounts payable is entered in the Analysis of Changes columns with a debit in the statement of cash flows section and a credit in the balance sheet section.

⊚ true
⊚ false

72) Depreciation expense is not reported on a statement of cash flows prepared under the direct method.

⊚ true
⊚ false

73) Using the direct method, operating cash receipts includes cash received from customers.

⊚ true
⊚ false

74) Applying the direct method, the gain or loss from retirement of debt is reported under cash flows from operating activities on the statement of cash flows.

⊚ true
⊚ false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.
75) The statement of cash flows reports:

A) Assets, liabilities, and equity.
B) Revenues, gains, expenses, and losses.
C) Cash receipts (inflows) and cash payments (outflows) for an accounting period.
D) Equity, net income, and dividends.
E) Changes in equity.

76) Which of the following is not reported on the statement of cash flows:

A) Cash flows from operating activities.
B) Cash flows from financing activities.
C) Cash flows from investing activities.
D) Net increase or decrease in cash.
E) The financial position of the company at the end of the accounting period.

77) The statement of cash flows is:

A) Another name for the statement of financial position.
B) A financial statement that presents information about changes in equity during a period.
C) A financial statement that reports the cash receipts (inflows) and cash payments (outflows) for an accounting period, and that classifies those cash flows as operating activities, investing activities, or financing activities.
D) A financial statement that lists the types and amounts of assets, liabilities, and equity of a business on a specific date.
E) A financial statement that lists the types and amounts of the revenues and expenses of a business for an accounting period.

78) A cash equivalent is:

A) An investment readily convertible to a known amount of cash.
B) Close to its maturity date but its market value may still be affected by interest rate changes.
C) An account payable due within 5 months.
D) Is not considered highly liquid.
E) Another name for cash.

79) An investment that is readily convertible to a known amount of cash and that is sufficiently close to its maturity date so that its market value is unaffected by interest rate changes is a(n):

A) Equity method investment.
B) Operating activity.
C) Common stock.
D) Cash equivalent.
E) Financing activity.

80) Transactions and events that affect net income such as the production and purchase of inventory, the sale of goods and services to customers, and the expenditures to run a business are classified as:

A) Financing activities.
B) Investing activities.
C) Operating activities.
D) Direct activities.
E) Indirect activities.

81) The section in the statement of cash flows for reporting the purchase of equipment for cash is:

A) Operating activities.
B) Financing activities.
C) Investing activities.
D) Schedule of noncash investing or financing activity.
E) This is not reported on the statement of cash flows.

82) Which of the following items is reported on the statement of cash flows under financing activities?

A) Purchase of equipment for cash.
B) Payment of a cash dividend.
C) Payment for merchandise.
D) Purchase of a short-term investment.
E) Stock split.

83) Investing activities do not include the:

A) Purchase of plant assets.
B) Loaning of money in exchange for notes receivable.
C) Issuance of common stock.
D) Sale of plant assets.
E) Sale of short-term investments.

84) The appropriate section in the statement of cash flows for reporting the cash payment of wages is:

A) Operating activities.
B) Financing activities.
C) Investing activities.
D) Schedule of noncash investing or financing activity.
E) This is not reported on the statement of cash flows.

85) The section in the statement of cash flows for reporting the issuance of common stock for cash is:

A) Operating activities.
B) Financing activities.
C) Investing activities.
D) Schedule of noncash investing or financing activity.
E) This is not reported on the statement of cash flows.

86) A company's transactions with its creditors to borrow money and/or to repay the principal amounts of both short- and long-term debt are reported as cash flows from:

A) Operating activities.
B) Investing activities.
C) Financing activities.
D) Direct activities.
E) Indirect activities.

87) The section in the statement of cash flows for reporting the receipt of cash from dividend revenue is:

A) Operating activities.
B) Financing activities.
C) Investing activities.
D) Schedule of noncash investing or financing activity.
E) This is not reported on the statement of cash flows.

88) Which one of the following is an example of cash flows from operating activities?

A) Proceeds from collecting the principal amounts of loans.
B) Repayment of principals on loans.
C) Proceeds from the issuance of bonds and notes payable.
D) Payments to acquire equity securities of other companies.
E) Receipts of cash from sales.

89) Which of the following is not a cash flow from investing activities?

A) Payments to purchase plant assets.
B) Proceeds from collecting accounts receivable that arise from customer sales.
C) Payments to buy intangible assets.
D) Payments to acquire long-term investments.
E) Proceeds from the sale of equipment.

90) If a company borrows money from a bank, the interest paid on this loan should be reported on the statement of cash flows as a(n):

A) Operating activity.
B) Investing activity.
C) Financing activity.
D) Noncash investing and financing activity.
E) This is not reported in the statement of cash flows.

91) Cash flows from collections on credit sales are usually reported in the statement of cash flows as part of:

A) Operating activities.
B) Financing activities.
C) Investing activities.
D) Noncash activities.
E) This is not reported in the statement of cash flows.

92) Which of the following is included in the cash flows from financing activities section of the statement of cash flows?

A) Interest revenue.
B) Sale of equipment.
C) Interest expense.
D) Purchase of treasury stock.
E) Purchase of long-term investments.

93) Cash flows from the payment of taxes and fines are reported in the statement of cash flows as part of:

A) Operating activities.
B) Financing activities.
C) Investing activities.
D) Noncash activities.
E) This is not reported in the statement of cash flows.

94) Which of the following is not an example of noncash financing and investing?

A) Retirement of debt by issuing equity stock.
B) Purchase of equipment by issuing a note payable.
C) Purchase of inventory using cash.
D) Purchase of a building by issuing equity stock.
E) Conversion of preferred stock to common stock.

95) The appropriate section in the statement of cash flows for reporting the purchase of land in exchange for common stock is:

A) Operating activities.
B) Financing activities.
C) Investing activities.
D) In a note to the statement or in a separate schedule.
E) Reconciliation of cash balance.

96) The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in:

A) Operating activities.
B) Financing activities.
C) Investing activities.
D) A note to the statement or a in a separate schedule.
E) Reconciliation of cash balance.

97) An example of a transaction that must be disclosed as a noncash investing and financing activity includes all but which of the following?

A) The retirement of debt by issuing equity stock.
B) The collection of cash from sales that were made on credit.
C) The leasing of assets in a long-term lease transaction.
D) The purchase of noncash assets in exchange for equity or debt.
E) The purchase of long-term assets financed by issuing a note or bond.

98) Noncash investing and financing activities may be disclosed in:

A) A note in the financial statements or a schedule attached to the statement of cash flows.
B) The operating activities section of the statement of cash flows.
C) The investing activities section of the statement of cash flows.
D) The financing activities section of the statement of cash flows.
E) The reconciliation of cash balance section.

99) Which of the following statements regarding the statement of cash flows is false?

A) Operating activities include transactions and events that affect net income.
B) Financing activities include transactions that affect long-term liabilities and equity.
C) Investing activities include transactions that affect issuance of common stock.
D) Investing activities include transactions and events that come from the purchase and sale of long-term assets.
E) Noncash activities are investing and financing activities that do not affect cash flows.

100) Common uses of the statement of cash flows include all but which of the following?

A) Management review of cash flows for decision making.
B) Investor assessment of cash flows before buying and selling stock.
C) Creditor evaluation of a company's ability to generate cash to cover debt.
D) Auditor assessment of internal controls for plant assets.
E) Management determination of the specific sources and uses of cash.

101) The statement of cash flows helps analysts evaluate all but which of the following?

A) The amount of debt relative to equity.
B) Source of cash used for plant expansion.
C) Differences between net income and net operating cash flow.
D) Source of cash used to finance investing activities.
E) Source of cash used for debt repayments.

102) The statement of cash flows cannot help address questions such as:

A) How is the increase in investments financed?
B) What is the source of cash for new plant assets?
C) How much cash is generated from or used in operations?
D) How much of the company's revenues have been retained as profit?
E) Why is cash flow from operations different from income?

103) The cash flow on total assets ratio:

A) Is the same as return on assets.
B) Is the same as profit margin.
C) Can help measure a company’s ability to meet its obligations.
D) Is highly affected by accounting principles of income recognition and measurement.
E) Is average net assets divided by cash flows from operations.

104) The cash flow on total assets ratio is calculated by:

A) Dividing cash flow from operations by average total assets.
B) Dividing total cash flows by average total assets.
C) Dividing average total assets by cash flow from financing activities.
D) Dividing average total assets by total cash flows.
E) Total cash flows divided by average total assets times 365.

105) A company had net cash flows from operations of $344,100, net income of $286,000 and average total assets of $1,850,000. The cash flow on total assets ratio equals:

A) 83.9%
B) 542.5%
C) 15.5%
D) 18.6%
E) 646.9%

106) A company had net cash flows from operations of $142,000, cash flows from financing of $374,000, total cash flows of $566,000, and average total assets of $3,820,000. The cash flow on total assets ratio equals:

A) 3.7%.
B) 3.9%.
C) 14.8%.
D) 14.5%.
E) 25.1%.

107) A company had net cash flows from operations of $120,000, cash flows from financing of $330,000, total cash flows of $500,000, and average total assets of $2,500,000. The cash flow on total assets ratio equals:

A) 4.8%.
B) 5.0%.
C) 20.0%.
D) 20.8%.
E) 24.0%.

108) A company had average total assets of $3,860,000, total cash flows of $2,640,000, cash flows from operations of $535,000, and cash flows from financing of $1,410,000. The cash flow on total assets ratio equals:

A) 36.50%.
B) 25.02%.
C) 13.16%.
D) 13.86%.
E) 68.39%.

109) A company had average total assets of $1,660,000, total cash flows of $1,320,000, cash flows from operations of $204,180, and cash flows from financing of $750,000. The cash flow on total assets ratio equals:

A) 45.2%.
B) 22.0%.
C) 11.65%.
D) 12.3%.
E) 79.5%.

110) Preparation of the statement of cash flows does not involve:

A) Computing the net increase or decrease in cash.
B) Computing and reporting net cash provided or used by operations.
C) Computing the profit compared to the net increase or decrease in cash.
D) Computing and reporting net cash provided or used by financing activities.
E) Computing and reporting net cash provided or used by investing activities.

111) The method of reporting operating activities that lists operating cash receipts and subtracts operating cash payments is referred to as the:

A) Direct method of reporting net cash provided or used by operating activities.
B) Cash basis of accounting.
C) Classified statement of cash flows.
D) Indirect method of reporting net cash provided or used by operating activities.
E) Net method of reporting cash flows from operating activities.

112) A statement of cash flows explains the differences between the beginning and ending balances of:

A) Net income.
B) Equity.
C) Cash and cash equivalents.
D) Working capital.
E) Cash and short-term investments.

113) The direct method for the preparation of the operating activities section of the statement of cash flows:

A) Separately lists operating cash receipts and operating cash payments.
B) Reports adjustments to reconcile net income to net cash provided or used by operating activities in the statement.
C) Reports a different amount of cash flows from operations than if the indirect method is used.
D) Is required if the company is a merchandiser.
E) Is required by the FASB.

114) The indirect method for the preparation of the operating activities section of the statement of cash flows:

A) Separately lists each major item of operating cash receipts.
B) Separately lists each major item of operating cash payments.
C) Reports net income and then adjusts it for items that do not affect cash.
D) Is required if the company is a merchandiser.
E) Must not be used in all circumstances.

115) The direct method of reporting operating cash flows:

A) Subtracts cash payments from cash receipts.
B) Must be used by all companies.
C) Is used by most companies.
D) Is considered supplementary disclosure.
E) Is not recommended by the FASB, but is commonly used.

116) Which of the following affects cash?

A) The declaration of a stock dividend.
B) Writing off an uncollectible account receivable.
C) Acquiring a building in exchange for a note payable.
D) An adjusting entry recognizing the expiration of prepaid insurance.
E) The payment of interest expense accrued in a previous accounting period.

117) When using the indirect method to calculate and report the net cash provided or used by operating activities, net income is adjusted for all but which of the following?

A) Gains and losses from nonoperating items.
B) Revenues and expenses that did not provide or use cash.
C) Changes in noncurrent assets and noncurrent liabilities.
D) Changes in current liabilities related to operating activities.
E) Depreciation and amortization expense.

118) When using the indirect method to calculate and report net cash provided or used by operating activities, which of the following is subtracted from net income?

A) Decrease in income taxes payable.
B) Depreciation expense.
C) Amortization of intangible assets.
D) Bad debts expense.
E) Decrease in merchandise inventory.

119) The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:

A) Cash paid to suppliers.
B) Cash received from customers.
C) Increase (decrease) in accounts receivable.
D) Net income (loss).
E) Adjustments to net income.

120) When preparing a statement of cash flows using the indirect method, which of the following should not be classified as an operating cash flow?

A) An increase in accounts receivable.
B) A decrease in accounts payable.
C) Proceeds from the disposal of a long-term asset with no gain or loss.
D) An increase in prepaid expenses.
E) A decrease in accrued expenses payable.

121) A company's Inventory balance at the end of the year was $190,700 and $203,000 at at the beginning of the year. Its Accounts Payable balance at the end of the year was $87,000 and $82,700 at the beginning of the year, and its cost of goods sold for the year was $723,000. The company's total amount of cash payments for merchandise during the year equals:

A) $715,000.
B) $739,600.
C) $723,000.
D) $706,400.
E) $731,000.

122) A company's Inventory balance at the end of the year was $188,000 and $200,000 at the beginning of the year. Its Accounts Payable balance at the end of the year was $84,000 and $80,000 at the beginning of the year, and its cost of goods sold for the year was $720,000. The company's total amount of cash payments for merchandise during the year equals:

A) $704,000.
B) $712,000.
C) $720,000.
D) $728,000.
E) $736,000.

123) Use the following information to calculate cash paid for wages and salaries:

A) $179,000.
B) $166,200.
C) $186,500.
D) $173,700.
E) $184,300.

124) Use the following information to calculate cash paid for wages and salaries:

A) $157,400.
B) $163,800.
C) $168,000.
D) $172,200.
E) $174,400.

125) Use the following information to calculate cash paid for salaries:

A) $189,000.
B) $204,000.
C) $174,000.
D) $136,000.
E) $155,000.

126) Use the following information to calculate cash paid for salaries:

A) $175,000.
B) $183,000.
C) $167,000.
D) $143,000.
E) $155,000.

127) Use the following information to calculate cash paid for income taxes:

A) $25,500.
B) $59,900.
C) $61,600.
D) $47,300.
E) $49,000.

128) Use the following information to calculate cash paid for income taxes:

A) $23,700.
B) $52,100.
C) $53,200.
D) $41,900.
E) $43,000.

129) Use the following information to calculate cash paid for income taxes:

A) $60,000.
B) $79,000.
C) $72,000.
D) $53,000.
E) $67,000.

130) Use the following information to calculate cash paid for income taxes:

A) $50,000.
B) $59,000.
C) $57,000.
D) $48,000.
E) $52,000.

131) Use the following information about the current year operations of a company to calculate the cash paid for merchandise.

A) $245,000.
B) $253,000.
C) $238,400.
D) $251,600.
E) $237,000.

132) Use the following information about the current year operations of a company to calculate the cash paid for merchandise.

A) $218,000.
B) $223,200.
C) $220,000.
D) $228,800.
E) $234,000.

133) Use the following information about the current year operations of a company to calculate the cash paid for merchandise.

A) $847,000.
B) $848,800.
C) $855,200.
D) $864,800.
E) $865,200.

134) Use the following information about the current year operations of a company to calculate the cash paid for merchandise.

A) $727,000.
B) $726,300.
C) $732,700.
D) $737,300.
E) $737,700.

135) Use the following information about the current year operations of a company to calculate the cash paid for merchandise.

A) $717,000.
B) $664,000.
C) $576,000.
D) $640,000.
E) $644,000.

136) Use the following information about the current year operations of a company to calculate the cash paid for merchandise.

A) $585,000.
B) $520,000.
C) $480,000.
D) $508,000.
E) $512,000.

137) When preparing a statement of cash flows using the indirect method, which of the following is correct?

A) Proceeds from the sale of equipment should be added back to net income in the operating activities section.
B) A loss on the sale of land should be added back to net income in the operating activities section.
C) The declaration of a cash dividend should be a use of cash in the operating activities section.
D) The sale of plant assets should be a use of cash in the financing activities section.
E) The purchase of land and a building by issuing a long-term note payable should be a source of cash in the financing activities section.

138) A company's income statement showed the following: net income, $125,000; depreciation expense, $35,500; and gain on sale of plant assets, $9,500. The company's current assets and current liabilities showed the following changes: accounts receivable decreased $10,500; merchandise inventory increased $23,500; prepaid expenses increased $7,300; accounts payable increased $4,500. Calculate the net cash provided or used by operating activities.

A) $147,800.
B) $149,800.
C) $175,800.
D) $135,200.
E) $154,600.

139) A company's income statement showed the following: net income, $134,000; depreciation expense, $30,000; and gain on sale of plant assets, $4,000. The company's current assets and current liabilities showed the following changes: accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses increased $6,200; accounts payable increased $3,400. Calculate the net cash provided or used by operating activities.

A) $156,600.
B) $141,000.
C) $96,600.
D) $148,600.
E) $88,600.

140) A company's income statement showed the following: net income, $129,000 and depreciation expense, $31,500. The company's current assets and current liabilities showed the following changes: accounts receivable decreased $9,900; merchandise inventory increased $19,000; and accounts payable increased $3,900. Calculate the net cash provided or used by operating activities.

A) $123,000.
B) $165,700.
C) $127,700.
D) $155,300.
E) $185,500.

141) A company's income statement showed the following: net income, $124,000 and depreciation expense, $30,000. The company's current assets and current liabilities showed the following changes: accounts receivable decreased $9,400; merchandise inventory increased $18,000; and accounts payable increased $3,400. Calculate the net cash provided or used by operating activities.

A) $118,000.
B) $159,200.
C) $123,200.
D) $148,800.
E) $178,000.

142) Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

A) $38,500.
B) $32,000.
C) $17,600.
D) $16,600.
E) $98,500.

143) Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

A) $69,900.
B) $108,900.
C) $93,900.
D) $85,700.
E) $81,600.

144) In preparing a company's statement of cash flows using the indirect method, the following information is available:

Net cash provided by operating activities was:

A) $22,000.
B) $126,000.
C) $46,000.
D) $32,000.
E) $71,600.

145) In preparing a company's statement of cash flows using the indirect method, the following information is available:

Net cash provided by operating activities was:

A) $120,000.
B) $71,000.
C) $70,000.
D) $24,000.
E) $110,000.

146) In preparing a company's statement of cash flows using the indirect method, the following information is available:

Net cash provided by operating activities was:

A) $204,000.
B) $95,000.
C) $94,000.
D) $48,000.
E) $170,000.

147) In preparing a company's statement of cash flows using the indirect method, the following information is available:

Net cash provided by operating activities was:

A) $120,000.
B) $71,000.
C) $70,000.
D) $24,000.
E) $110,000.

148) In preparing a company's statement of cash flows using the indirect method, the following information is available:

Net cash provided by operating activities was:

A) $122,600.
B) $61,400.
C) $72,200.
D) $83,000.
E) $133,400.

149) In preparing a company's statement of cash flows using the indirect method, the following information is available:

Net cash provided by operating activities was:

A) $120,000.
B) $60,000.
C) $70,000.
D) $80,000.
E) $130,000.

150) In preparing a company's statement of cash flows using the indirect method, the following information is available:

Net cash provided by operating activities was:

A) $38,000.
B) $64,000.
C) $82,000.
D) $100,000.
E) $60,000.

151) In preparing a company's statement of cash flows using the indirect method, the following information is available:

Net cash provided by operating activities was:

A) $34,000.
B) $60,000.
C) $70,000.
D) $80,000.
E) $52,000.

152) A machine with a cost of $143,000 and accumulated depreciation of $98,000 is sold for $56,500 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

A) $56,500.
B) $45,000.
C) $11,500.
D) Zero. This is a financing activity.
E) Zero. This is an operating activity.

153) A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

A) $50,000.
B) $5,000.
C) $45,000.
D) Zero. This is an operating activity.
E) Zero. This is a financing activity.

154) A machine with a cost of $145,000 and accumulated depreciation of $92,500 is sold for $65,000 cash. The amount that should be reported in the operating activities section reported under the direct method is:

A) $65,000.
B) $12,500.
C) $52,500.
D) $0.
E) $27,500.

155) A machine with a cost of $130,000 and accumulated depreciation of $80,000 is sold for $50,000 cash. The amount that should be reported in the operating activities section reported under the direct method is:

A) $50,000.
B) $5,000.
C) $45,000.
D) $0.
E) $35,000.

156) A machine with a cost of $156,000, accumulated depreciation of $98,000, and current year depreciation expense of $23,500 is sold for $50,400 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

A) $47,600.
B) $7,600.
C) $23,500.
D) $24,100.
E) $50,400.

157) A machine with a cost of $130,000, accumulated depreciation of $85,000, and current year depreciation expense of $17,000 is sold for $40,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

A) $45,000.
B) $5,000.
C) $17,000.
D) $28,000.
E) $40,000.

158) A machine with a cost of $158,000 and accumulated depreciation of $99,000 is sold for $51,200 cash. The amount of the loss related to the sale of this machine should be reported in the operating section under the indirect method is:

A) $24,000.
B) $5,120.
C) $75,200.
D) $16,800.
E) $7,800.

159) A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $40,000 cash. The amount of the loss related to the sale of this machine should be reported in the operating section under the indirect method is:

A) $17,000.
B) $4,000.
C) $57,000.
D) $21,000.
E) $5,000.

160) A company reported that its bonds with a par value of $50,000 and a carrying value of $66,500 are retired for $71,400 cash, resulting in a loss of $4,900. The amount to be reported under cash flows from financing activities is:

A) $16,500.
B) $(4,900).
C) $(66,500).
D) $(71,400).
E) $(16,500).

161) A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash, resulting in a loss of $3,000. The amount to be reported under cash flows from financing activities is:

A) $(3,000).
B) $(60,000).
C) $(57,000).
D) $7,000.
E) $(7,000).

162) Ram Corporation paid cash dividends totaling $55,000 during its most recent fiscal year. How should this information be reported on Ram’s statement of cash flows?

A) In operating activities as a source of funds.
B) In investing activities as a source of funds.
C) In investing activities as a use of funds.
D) In financing activities as a source of funds.
E) In financing activities as a use of funds.

163) Use the following information to calculate cash received from dividends:

A) $34,200.
B) $30,200.
C) $32,400.
D) $27,300.
E) $31,300.

164) Use the following information to calculate cash received from dividends:

A) $26,400.
B) $29,000.
C) $29,800.
D) $30,600.
E) $32,400.

165) Use the following information to calculate cash received from dividends:

A) $69,000.
B) $67,950.
C) $70,050.
D) $74,250.
E) $64,800.

166) Use the following information to calculate cash received from dividends:

A) $63,500.
B) $63,000.
C) $64,000.
D) $67,100.
E) $60,400.

167) Analysis reveals that a company had a net increase in cash of $22,530 for the current year. Net cash provided by operating activities was $20,300; net cash used in investing activities was $11,150 and net cash provided by financing activities was $13,380. If the year-end cash balance is $27,450, the beginning cash balance was:

A) $4,920.
B) $17,610.
C) $49,980.
D) $45,060.
E) $44,060.

168) Analysis reveals that a company had a net increase in cash of $20,000 for the current year. Net cash provided by operating activities was $18,000; net cash used in investing activities was $10,000 and net cash provided by financing activities was $12,000. If the year-end cash balance is $24,000, the beginning cash balance was:

A) $4,000.
B) $16,000.
C) $44,000.
D) $40,000.
E) $39,000.

169) Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $36,000; net cash used in investing activities was $13,200 and net cash used in financing activities was $16,800. If the beginning cash balance is $6,600, what is the ending cash balance?

A) $72,600.
B) $59,400.
C) $39,000.
D) $6,000.
E) $12,600.

170) Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $28,000; net cash used in investing activities was $10,000 and net cash used in financing activities was $12,000. If the beginning cash balance is $5,000, what is the ending cash balance?

A) $55,000.
B) $45,000.
C) $31,000.
D) $6,000.
E) $11,000.

171) Bagrov Corporation had a net decrease in cash of $15,500 for the current year. Net cash used in investing activities was $57,500 and net cash used in financing activities was $43,500. What amount of cash was provided (used) in operating activities?

A) $116,500 provided.
B) $(15,500) used.
C) $85,500 provided.
D) $(116,500) used.
E) $(85,500) used.

172) Bagrov Corporation had a net decrease in cash of $10,000 for the current year. Net cash used in investing activities was $52,000 and net cash used in financing activities was $38,000. What amount of cash was provided (used) in operating activities?

A) $100,000 provided.
B) $(100,000) used.
C) $80,000 provided.
D) $(80,000) used.
E) $(10,000) used.

173) The accountant for Crusoe Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

What is the ending balance for retained earnings?

A) $258,000.
B) $215,000.
C) $207,000.
D) $403,000.
E) $184,000.

174) The accountant for Crusoe Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

What is the ending balance for retained earnings?

A) $218,000.
B) $170,000.
C) $352,000.
D) $172,000.
E) $179,000.

175) The accountant for Walter Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

The amount of cash dividends paid during the year would be:

A) $55,600.
B) $53,600.
C) $15,600.
D) $83,000.
E) $51,600.

176) The accountant for Walter Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

The amount of cash dividends paid during the year would be:

A) $48,000.
B) $46,000.
C) $8,000.
D) $64,000.
E) $44,000.

177) The accountant for TI Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

What is the ending balance for retained earnings?

A) $286,500.
B) $14,500.
C) $265,500.
D) $213,500.
E) $114,000.

178) The accountant for TI Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

What is the ending balance for retained earnings?

A) $264,000.
B) $13,000.
C) $243,000.
D) $197,000.
E) $105,000.

179) The accountant for Sysco Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows?

A) $60,000.
B) $62,800.
C) $90,000.
D) $2,800.
E) $57,200.

180) The accountant for Sysco Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows?

A) $42,000.
B) $43,000.
C) $63,000.
D) $1,000.
E) $41,000.

181) In preparing a company's statement of cash flows for the most recent year, the following information is available:

Net cash flows from investing activities for the year were:

A) $146,000 of net cash provided.
B) $146,000 of net cash used.
C) $130,800 of net cash used.
D) $276,000 of net cash used.
E) $239,000 of net cash provided.

182) In preparing a company's statement of cash flows for the most recent year, the following information is available:

Net cash flows from investing activities for the year were:

A) $234,000 of net cash used.
B) $120,000 of net cash provided.
C) $340,000 of net cash used.
D) $259,000 of net cash used.
E) $280,000 of net cash provided.

183) In preparing a company's statement of cash flows for the year just ended, the following information is available:

Net cash flows from financing activities for the year were:

A) $147,000 of net cash used.
B) $26,000 of net cash used.
C) $347,000 of net cash used.
D) $51,000 of net cash used.
E) $340,000 of net cash used.

184) In preparing Tywin Company's statement of cash flows for the most recent year, the following information is available:

Net cash flows from investing activities for the year were:

A) $438,000 of net cash used.
B) $438,000 of net cash provided.
C) $264,000 of net cash used.
D) $351,000 of net cash used.
E) $264,000 of net cash provided.

185) In preparing a company's statement of cash flows for the most recent year, Jeffers Corporation reported the following information:

Net cash flows from financing activities for the year were:

A) $230,000 of net cash used.
B) $230,000 of net cash provided.
C) $108,000 of net cash used.
D) $138,000 of net cash used.
E) $138,000 of net cash provided.

186) When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from operating activities generally are affected by:

A) Net income, current assets, and current liabilities.
B) Noncurrent assets.
C) Noncurrent liability and equity accounts.
D) Both noncurrent assets and noncurrent liabilities.
E) Equity accounts only.

187) When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from investing activities generally are affected by:

A) Net income, current assets, and current liabilities.
B) Noncurrent assets.
C) Noncurrent liability and equity accounts.
D) Both noncurrent assets and noncurrent liabilities.
E) Equity accounts only.

188) When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from financing activities generally are affected by:

A) Net income, current assets, and current liabilities.
B) Noncurrent assets.
C) Noncurrent liability and equity accounts.
D) Both noncurrent assets and noncurrent liabilities.
E) Equity accounts only.

189) Which of the following transactions or events should be reported as a source of cash from operating activities when using the direct method?

A) Credit sales.
B) Cash collections from customers.
C) Depreciation expense.
D) Cash received from the sale of a building.
E) Cash received from the sale of treasury stock.

190) When the operating activities section of the statement of cash flows is reported using the direct method:

A) Net income is adjusted for changes in noncurrent assets and noncurrent liabilities.
B) Operating cash receipts minus operating cash payments equals net cash provided (used by) operating activities.
C) Footnotes to the financial statements disclose the difference between net income and the cash provided or used by financing activities.
D) The income statement is prepared under the cash basis of accounting.
E) Noncash investing and financing activities is included in the statement of cash flows.

191) Which of the following statements related to reporting cash flows from investing and financing activities is false?

A) Reporting of financing activities is the same under the direct method and indirect method.
B) Changes in noncurrent liability accounts and equity accounts are analyzed to determine cash flows from financing activities.
C) Changes in noncurrent asset accounts, current notes receivable, and current investments are analyzed to determine cash flows from investing activities.
D) The direct method applies accrual accounting while the indirect method applies cash basis accounting.
E) Reporting of investing activities is the same under the direct method and indirect method.

192) Which of the following statements related to the preparation of the statement of cash flows is false?

A) A company may report cash flows from operating activities using either the direct or indirect method.
B) Interest expense may be reported under operating activities or financing activities based on which one results in better cash flows.
C) Cash dividends paid to shareholders are classified as a financing activity.
D) Purchase of an intangible asset is classified as an investing activity.
E) Repaying the principal of notes payable is classified as a financing activity.

193) Ford Company reports depreciation expense of $48,000 for Year 2. Also, equipment costing $165,000 was sold for its book value in Year 2. There were no other equipment purchases or sales during the year. The following selected information is available for Ford Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.

A) $48,000.
B) $40,000.
C) $85,000.
D) $37,000.
E) $80,000.

194) Ford Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $150,000 was sold for its book value in Year 2. There were no other equipment purchases or sales during the year. The following selected information is available for Ford Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.

A) $36,000.
B) $32,000.
C) $68,000.
D) $38,000.
E) $40,000.

195) Green Company reports depreciation expense of $50,000 for Year 2. Also, equipment costing $170,000 was sold for a $6,000 gain in Year 2. The following selected information is available for Green Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.

A) $50,000.
B) $88,000.
C) $44,000.
D) $32,000.
E) $38,000.

196) Green Company reports depreciation expense of $35,000 for Year 2. Also, equipment costing $140,000 was sold for a $5,000 gain in Year 2. The following selected information is available for Green Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.

A) $23,000.
B) $35,000.
C) $38,000.
D) $40,000.
E) $67,000.

197) Favre Company reports depreciation expense of $45,000 for Year 2. Also, equipment costing $155,000 was sold for a $10,500 loss in Year 2. The following selected information is available for Favre Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.

A) $43,500.
B) $45,000.
C) $66,500.
D) $33,000.
E) $22,500.

198) Favre Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $240,000 was sold for a $10,000 loss in Year 2. The following selected information is available for Favre Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.

A) $62,000.
B) $38,000.
C) $28,000.
D) $18,000.
E) $58,000.

199) Jordan’s net income for the year ended December 31, Year 2 was $195,000. Information from Jordan’s comparative balance sheets is given below. Compute the cash received from the sale of its common stock during Year 2.

A) $195,000.
B) $107,000.
C) $51,000.
D) $96,000.
E) $147,000.

200) Jordan’s net income for the year ended December 31, Year 2 was $185,000. Information from Jordan’s comparative balance sheets is given below. Compute the cash received from the sale of its common stock during Year 2.

A) $185,000.
B) $106,000.
C) $95,000.
D) $50,000.
E) $145,000.

201) Salah’s net income for the year ended December 31, Year 2 was $189,000. Information from Salah’s comparative balance sheets is given below. Compute the cash paid for dividends during Year 2.

A) $106,400.
B) $95,400.
C) $145,800.
D) $50,400.
E) $82,600.

202) Salah’s net income for the year ended December 31, Year 2 was $175,000. Information from Salah’s comparative balance sheets is given below. Compute the cash paid for dividends during Year 2.

A) $79,000.
B) $201,000.
C) $95,000.
D) $50,000.
E) $69,000.

203) Alfredo Incorporated reports net income of $257,000 for the year ended December 31. It also reports $99,400 depreciation expense and a $6,350 gain on the sale of equipment. Its comparative balance sheet reveals a $40,900 decrease in accounts receivable, a $18,450 increase in accounts payable, and a $14,300 decrease in wages payable. Calculate the cash provided (used) in operating activities using the indirect method.

A) $395,100.
B) $296,100.
C) $358,200.
D) $423,700.
E) $401,450.

204) Alfredo Incorporated reports net income of $230,000 for the year ended December 31. It also reports $87,700 depreciation expense and a $5,000 gain on the sale of equipment. Its comparative balance sheet reveals a $35,500 decrease in accounts receivable, a $15,750 increase in accounts payable, and a $12,500 decrease in wages payable. Calculate the cash provided (used) in operating activities using the indirect method.

A) $376,450.
B) $351,450.
C) $356,450.
D) $319,950.
E) $263,750.

205) Gregor Company reports net income of $305,000 for the year ended December 31. It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment. Its comparative balance sheet reveals a $40,200 increase in accounts receivable, a $10,200 decrease in prepaid expenses, a $15,200 increase in accounts payable, a $12,500 decrease in wages payable, and a $100,000 decrease in long-term notes payable. Calculate the cash provided (used) in operating activities using the indirect method.

A) $461,800.
B) $371,400.
C) $381,400.
D) $351,000.
E) $361,000.

206) Mast Company reports net income of $317,500 for the year ended December 31. It also reports $100,200 depreciation expense and a $10,750 loss on the sale of equipment. Its comparative balance sheet reveals a $43,200 increase in accounts receivable, a $10,950 decrease in prepaid expenses, a $16,450 increase in accounts payable, a $13,500 decrease in wages payable, a $80,500 increase in equipment, and a $107,500 decrease in long-term notes payable. Calculate the net increase in cash for the year.

A) $221,900.
B) $399,150.
C) $211,150.
D) $318,650.
E) $291,650.

207) Mast Company reports net income of $305,000 for the year ended December 31. It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment. Its comparative balance sheet reveals a $40,200 increase in accounts receivable, a $10,200 decrease in prepaid expenses, a $15,200 increase in accounts payable, a $12,500 decrease in wages payable, a $75,000 increase in equipment, and a $100,000 decrease in long-term notes payable. Calculate the net increase in cash for the year.

A) $216,400.
B) $281,400.
C) $381,400.
D) $206,400.
E) $406,400.

208) Alvarez Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

The ending balance in retained earnings is:

A) $348,100.
B) $338,500.
C) $262,550.
D) $397,250.
E) $344,050.

209) Alvarez Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

The ending balance in retained earnings is:

A) $343,000.
B) $213,000.
C) $293,000.
D) $297,500.
E) $301,000.

210) Barclays Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

The amount of cash paid for dividends was:

A) $70,500.
B) $58,750.
C) $69,900.
D) $51,100.
E) $59,350.

211) Barclays Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

The amount of cash paid for dividends was:

A) $52,000.
B) $60,000.
C) $58,000.
D) $50,000.
E) $42,000.

212) Citi Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

The amount of cash paid for dividends was:

A) $44,000.
B) $40,000.
C) $57,000.
D) $53,000.
E) $36,000.

213) If a company is using the indirect method to prepare the statement of cash flows, identify where an increase in the accounts receivable account should be reported:

A) An increase in cash flows from operating activities
B) An increase in cash flows from investing activities
C) A decrease in cash flows from operating activities
D) A decrease in cash flows from investing activities
E) An increase in cash flows from financing activities

214) If a company is using the indirect method to prepare the statement of cash flows, a decrease in the inventory account should be reported as:

A) An increase in cash flows from operating activities
B) An increase in cash flows from investing activities
C) A decrease in cash flows from operating activities
D) A decrease in cash flows from investing activities
E) An increase in cash flows from financing activities

215) A cash dividend payment to shareholders during the year should be reported on the statement of cash flows as:

A) An increase in cash flows from financing activities
B) An increase in cash flows from investing activities
C) A decrease in cash flows from operating activities
D) A decrease in cash flows from investing activities
E) A decrease in cash flows from financing activities

216) Northeast Incorporated is preparing the company's statement of cash flows for the fiscal year just ended. Using the following information, determine the amount of cash flows from operating activities using the indirect method:

A) $332,200.
B) $236,800.
C) $261,400.
D) $186,800.
E) $189,400.

217) Northeast Incorporated is preparing the company's statement of cash flows for the fiscal year just ended. Using the following information, determine the amount of cash flows from investing activities:

A) $(107,700).
B) $107,700.
C) $(200,000).
D) $(139,700).
E) $(207,700).

218) Northeast Incorporated is preparing the company's statement of cash flows for the fiscal year just ended. Using the following information, determine the amount of cash flows from financing activities:

A) $(168,000).
B) $200,000.
C) $168,000.
D) $(191,700).
E) $191,700.

219) A company had average total assets of $3,225,000, total cash flows of $1,320,000, cash flows from operations of $554,700, and cash flows for plant assets of $850,000. The cash flow on total assets ratio equals:

A) 41.04%.
B) 41.97%.
C) 26.43%.
D) 17.20%.
E) 64.39%.

Answer Key

Test name: John Wild Ch12 Algorithmic and Static

1) TRUE

2) TRUE

3) FALSE

4) TRUE

5) TRUE

6) TRUE

7) TRUE

8) FALSE

9) TRUE

10) TRUE

11) FALSE

12) TRUE

13) FALSE

14) TRUE

15) TRUE

16) FALSE

17) FALSE

18) TRUE

19) TRUE

20) FALSE

21) TRUE

22) TRUE

23) FALSE

24) TRUE

25) FALSE

26) TRUE

27) TRUE

28) TRUE

29) TRUE

30) FALSE

31) FALSE

32) TRUE

33) TRUE

34) TRUE

35) TRUE

36) TRUE

37) TRUE

38) FALSE

39) TRUE

40) FALSE

41) TRUE

42) TRUE

43) TRUE

44) TRUE

45) FALSE

46) TRUE

47) FALSE

48) TRUE

49) FALSE

50) FALSE

51) FALSE

52) FALSE

53) TRUE

54) TRUE

55) FALSE

56) TRUE

57) FALSE

58) TRUE

59) TRUE

60) FALSE

61) FALSE

62) FALSE

63) FALSE

64) TRUE

65) FALSE

66) FALSE

67) TRUE

68) TRUE

69) FALSE

70) FALSE

71) TRUE

72) TRUE

73) TRUE

74) FALSE

75) C

76) E

77) C

78) A

79) D

80) C

81) C

82) B

83) C

84) A

85) B

86) C

87) A

88) E

89) B

90) A

91) A

92) D

93) A

94) C

95) D

96) D

97) B

98) A

99) C

100) D

101) A

102) D

103) C

104) A

105) D

106) A

107) A

108) D

109) D

110) C

111) A

112) C

113) A

114) C

115) A

116) E

117) C

118) A

119) D

120) C

121) D

122) A

123) D

124) B

125) B

126) B

127) D

128) D

129) E

130) E

131) C

132) B

133) A

134) A

135) B

136) B

137) B

138) D

139) D

140) D

141) D

142) E

143) C

144) A

145) D

146) A

147) A

148) A

149) A

150) A

151) A

152) A

153) A

154) D

155) D

156) E

157) E

158) E

159) E

160) D

161) B

162) E

163) B

164) B

165) C

166) C

167) A

168) A

169) E

170) E

171) C

172) C

173) C

174) D

175) E

176) E

177) D

178) D

179) E

180) E

181) B

182) A

183) D

184) C

185) D

186) A

187) B

188) C

189) B

190) B

191) D

192) B

193) D

194) D

195) C

196) C

197) E

198) D

199) E

200) E

201) E

202) E

203) A

204) B

205) C

206) C

207) D

208) B

209) C

210) D

211) E

212) A

213) C

214) A

215) E

216) B

217) A

218) C

219) D