61 lopez corp uses the indirect method to prepare its statement of cash flows refer 4306599

61 lopez corp uses the indirect method to prepare its statement of cash flows refer 4306599

61) Lopez Corp. uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2014:

1) Long-Term Notes Payable, beginning balance, $80,000

2) Long-Term Notes Payable, ending balance, $76,000

3) Common Stock, beginning balance, $3,000

4) Common Stock, ending balance, $26,000

5) Retained Earnings, beginning balance, $75,000

6) Retained Earnings, ending balance, $115,000

7) Treasury Stock, beginning balance, $6,000

8) Treasury Stock, ending balance, $10,000

9) No stock was retired.

10) No treasury stock was sold.

11) During 2014, the company repaid $36,000 of Long-Term Notes Payable.

12) During 2014, the company borrowed $32,000 on a new Note Payable.

13) Net income for the year was $49,000.

14) Assume all dividends declared during the year were paid.

How much was the net cash flow from financing activities?

A) $2,000

B) $10,000

C) $(6,000)

D) $6,000

62) Clark Coatings Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2015:

Net cash provided by operating activities: $39,000

Net cash used for investing activities: $(25,000)

Net cash provided by financing activities: $1,200

How much was the net change in cash during the year?

A) $(15,200)

B) $37,800

C) $15,200

D) $(13,500)

63) Clark Coatings Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2015:

The beginning balance in the Cash account was $2,500

Net cash provided by operating activities: $39,000

Net cash used for investing activities: $(25,000)

Net cash provided by financing activities: $1,200

Which of the following statements is true?

A) The statement of cash flows will show ending cash balance of $15,200.

B) The statement of cash flows will show total net cash flows of $64,000 positive.

C) The statement of cash flows will show total net cash flows of $15,200 negative.

D) The statement of cash flows will show ending cash balance of $17,700.

64) Avatar Auto Parts Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2015:

Net cash provided by operating activities: $102,000

Net cash used in investing activities: $(113,500)

Net cash provided by financing activities: $15,000

If the cash balance at the beginning of the year was $13,000, what would be the ending cash balance?

A) $16,500

B) $3,500

C) $13,000

D) $10,500

65) Brown Inc. owed one of its creditors $350,000, but it did not have enough cash to repay the debt. Following lengthy negotiations, the parties agreed that Brown Inc. would issue 50,000 shares of Common Stock to settle the debt. On the statement of cash flows, this transaction would be shown in the ________.

A) investing activities section

B) financing activities section

C) operating activities section

D) non-cash investing and financing activities section

66) Moore Sales purchased some equipment for $50,000 by issuing a 6-month Note Payable. On the statement of cash flows, this transaction would be shown in the ________.

A) non-cash financing and investing activities section

B) investing activities section

C) operating activities section

D) financing activities section

67) Shield Company just started in business, and it was looking for additional capital in order to purchase a property to build their headquarters. They found an investor who was willing to sell them land worth $700,000 in exchange for stock in the company. On the statement of cash flows, this transaction would be shown in the ________.

A) investing activities section

B) non-cash investing and financing activities section

C) operating activities section

D) financing activities section

68) Which of the following transactions would be shown in the non-cash investing and financing activities section of the statement of cash flows?

A) sold equipment with book value of $8,000 in exchange for $8,000 cash

B) borrowed $32,000 cash on a Note Payable

C) issued 15,000 shares of stock at $3 per share

D) purchased a building in exchange for 20,000 shares of Common Stock

69) Which of the following transactions would be shown in the non-cash investing and financing activities section of the statement of cash flows?

A) sold equipment with book value of $6,500 in exchange for $6,500 cash

B) settled a long-term Note Payable by issuing Common Stock

C) issued 20,000 shares of stock at $4 per share

D) purchased land for $30,000 cash

70) Which of the following transactions would be shown in the non-cash investing and financing activities section of the statement of cash flows?

A) sold equipment with book value of $15,000 in exchange for $15,000 cash

B) retired company bonds before the maturity date by paying a negotiated amount

C) issued 50,000 shares of stock at $2 per share

D) purchased land by signing a 10-year note for $500,000

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