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Beane Corporation shows income tax expense a1. Ware Company had purchases of $260,000. The comparative balance sheet analysis revealed a $15,000 decrease in inventory and a $25,000 increase in accounts payable. What were Ware's cash payments to suppliers? a. $235,000 b. $220,000 c. $275,000 d. $300,000 a2. Christine Company had an increase in inventory of $55,000. The cost of goods sold was $95,000. There was a $6,000 decrease in ...

Other / Other 08 Apr 2016

Kanet Company issued common stock for proceeds 1. Jean’s Vegetable Market had the following transactions during 2014: 1. Issued $50,000 of par value common stock for cash. 2. Repaid a 6 year note payable in the amount of $22,000. 3. Acquired land by issuing common stock of par value $100,000. 4. Declared and paid a cash dividend of $2,000. 5. Sold a long-term investment (cost $3,000) for cash of $8,000. 6. Acquired an in ...

Other / Other 08 Apr 2016

A statement of cash flows should help investors and creditors True or false: 1. The statement of cash flows is a required statement that must be prepared along with an income statement, balance sheet, and retained earnings statement. 2. For external reporting, a company must prepare either an income statement or a statement of cash flows, but not both. 3. A primary objective of the statement of cash flows is to show the income ...

Other / Other 08 Apr 2016

Wilson Company reported net income 1. If a gain of $12,000 is incurred in selling (for cash) office equipment having a book value of $110,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is a. $98,000. b. $122,000. c. $110,000. d. $12,000. 2. If a loss of $25,000 is incurred in selling (for cash) office equipment having a book value of $90,000, the total amount r ...

Other / Other 08 Apr 2016

The following data are available for Two-off Company 1. In Lynne Company, there was an increase in the land account during the year of $43,000. Analysis reveals that the change resulted from a cash sale of land at cost $115,000, and a cash purchase of land for $158,000. In the statement of cash flows, the change in the land account should be reported in the investment section: a. as a net purchase of land, $43,000. b. only as a purchase ...

Other / Other 08 Apr 2016

Spa Company uses the direct method in determining net cash 1. In converting net income to net cash provided by operating activities, under the indirect method: a. decreases in accounts receivable and increases in prepaid expenses are added. b. decreases in inventory and increases in accrued liabilities are added. c. decreases in accounts payable and decreases in inventory are deducted. d. increases in accounts receivable and increase ...

Other / Other 08 Apr 2016

Using the direct method, major classes of investing and financing activities True or false: 1. During the year, Income Tax Expense amounted to $30,000 and Income Taxes Payable increased by $4,000; therefore, the cash paid for income taxes was $26,000. 2. In preparing net cash flow from operating activities using the direct method, each item in the income statement is adjusted from the accrual basis to the cash basis. 3. Using the ...

Other / Other 08 Apr 2016

Identify several alternatives for presenting significant 1 (a) Identify several alternatives for presenting significant noncash activities in financial statements. (b) Give three examples of significant noncash transactions. 2 The following information is available for Redcands Company: Receipts from customers $215,000 Dividends from stock investments 3,000 Proceeds from sale of equipment 18,000 Proceeds from issuance of sto ...

Other / Other 08 Apr 2016

Assume the indirect method is used to compute cash flows 1 At January 1, 2014, Benny Enterprises reported a balance in the Equipment account of $45,000. During the year the company purchased equipment with a cost of $60,000 and sold equipment with a book value of $30,000. The company reported a loss on the sale of equipment of $4,000. Assume the indirect method is used. Instructions Determine what amount will be reported in (a) t ...

Other / Other 08 Apr 2016

Cash receipts from interest and dividends are classified 1. Investing activities include a. collecting cash on loans made. b. obtaining cash from creditors. c. obtaining capital from owners. d. repaying money previously borrowed. 2. Generally, the most important category on the statement of cash flows is cash flows from a. operating activities. b. investing activities. c. financing activities. d. significant noncash activities ...

Other / Other 08 Apr 2016