48 christopher corp is preparing its statement of cash flows using the indirect meth 4307743

48 christopher corp is preparing its statement of cash flows using the indirect meth 4307743

48) Christopher Corp. is preparing its statement of cash flows using the indirect method. It provides the following information about transactions for the year:

Plant assets, net—beginning balance: $108,000

Plant assets, net—ending balance: $144,000

Equipment costing $62,400 was purchased for cash

Equipment with a net asset value of $12,000 was sold for $16,800

Depreciation Expense of $14,400 was recorded during the year

What was the amount of net cash provided by (used for) investing activities?

A) $(45,600)

B) $45,600

C) $(60,000)

D) $(45,000)

49) Sonesta Farm equipment Company sold equipment for cash. The income statement shows a loss on sale of $7,000. The net book value of the asset prior to the sale was $26,900. Which of the following statements describes the cash effect of the transaction?

A) positive cash flow of $33,900 from financing activities

B) negative cash flow of $19,900 for operating activities

C) negative cash flow of $19,900 for financing activities

D) positive cash flow of $19,900 from investing activities

50) Martin Ceramics Company sold equipment for cash. The income statement shows a gain on sale of $920. The net book value of the asset prior to sale was $3,510. Which of the following statements describes the cash effect of the transaction?

A) negative cash flow of $4,430 for financing activities

B) negative cash flow of $2,590 for operating activities

C) positive cash flow of $4,430 from investing activities

D) positive cash flow of $2,590 from investing activities

51) Martin Ceramics Company is preparing its statement of cash flows using the indirect method. During the year, they sold equipment for $5,990 cash. The net book value of the asset prior to sale was $5,550. Which of the following statements is true?

A) The gain on sale of $440 would be added back to net income in the operating activities section.

B) The book value of the assets sold would be shown as a negative cash flow in the investing activities section.

C) The cash receipt of $5,990 would be shown as a positive cash flow in the investing activities section.

D) The gain on sale of $440 would be shown as a positive cash flow in the financing activities section.

52) Martin Ceramics Company is preparing its statement of cash flows using the indirect method. During the year, they purchased equipment for $15,000 cash. Which of the following statements is true?

A) $15,000 would be shown as a negative cash flow in the operating activities section.

B) $15,000 would be shown as a negative cash flow in the investing activities section.

C) $15,000 would be shown as a positive cash flow in the investing activities section.

D) $15,000 would be shown as a positive cash flow in the financing activities section.

53) Avatar Auto Parts Company is preparing its statement of cash flows using the indirect method. Refer to the following portion of the comparative balance sheet:

Avatar Company

Comparative Balance Sheet

December 31, 2014 and 2013

2014

2013

Increase/decrease

Accounts Payable

$4,000

$ 6,000

$(2,000)

Accrued Liabilities

2,000

1,000

1,000

Long-Term Notes Payable

56,000

64,000

(8,000)

Total liabilities

$62,000

$71,000

$(9,000)

Additional information provided by the company includes the following:

1) During 2014, the company repaid $35,000 of Long-Term Notes Payable.

2) During 2014, the company borrowed $27,000 on a new Note Payable.

Based on the above information only, what amount of net cash flow would be shown in the financing section of the statement of cash flows?

A) $(8,000)

B) $8,000

C) $62,000

D) $(62,000)

54) Perez Biofuels Company is preparing its statement of cash flows using the indirect method. Refer to the following information.

1) Repayments on Long-Term Notes Payable $58,000

2) New borrowing on Long-Term Notes Payable $19,000

Which of the following statements is accurate regarding the statement of cash flows?

A) Net cash used for financing activities will amount to $(39,000).

B) Net cash used for investing activities will amount to $58,000.

C) Net cash provided by financing activities will amount to $39,000.

D) Net cash provided by investing activities will amount to $39,000.

55) Avatar Auto Parts Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:

Avatar Company

Comparative Balance Sheet

December 31, 2014 and 2013

2014

2013

Increase/decrease

Common Stock

$16,000

$12,000

$4,000

Retained Earnings

113,000

74,000

39,000

Treasury Stock

(8,000)

(5,000)

(3,000)

Total equity

$121,000

$81,000

$40,000

Note:

1) There was no retirement of stock during the year.

2) There were no sales of treasury stock during the year.

Which of the following statements would be true?

A) There was zero net cash flow from transactions involving Common Stock.

B) There was a negative cash flow of $4,000 from the issuance of Common Stock.

C) There was a positive cash flow of $4,000 from the issuance of Common Stock.

D) There was positive cash flow of $16,000 from issuance of Common Stock.

56) The issue of Common Stock for cash will be shown as a ________.

A) negative cash flow in the investing section of the statement of cash flows

B) positive cash flow in the investing section of the statement of cash flows

C) negative cash flow in the financing section of the statement of cash flows

D) positive cash flow in the financing section of the statement of cash flows

57) Jelly Bean Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:

Jelly Bean Company

Comparative Balance Sheet

December 31, 2014 and 2013

2014

2013

Increase/decrease

Common Stock

$30,000

$2,000

$28,000

Retained Earnings

120,000

75,000

45,000

Treasury Stock

(12,000)

(8,000)

(4,000)

Total equity

$138,000

$69,000

$69,000

Note:

1) There were no stock retirements during the year.

2) There were no sales of treasury stock during the year.

Which of the following statements would be true?

A) There was zero net cash flow from transactions involving treasury stock.

B) There was $4,000 of positive cash flow from transactions involving treasury stock.

C) There was $4,000 negative cash flow from transactions involving treasury stock.

D) There was $12,000 negative cash flow from transactions involving treasury stock.

Looking for a similar assignment? Get help from our qualified experts!

Order Now

Related Posts