Question Details

Marsh Company has other operating expenses 



1.	Which of the following would not appear in the operating activities section of a statement of cash flows prepared under the direct method?
a.	Cash receipts from customers
b.	Cash paid for income taxes
c.	Gain on sale of equipment
d.	Cash paid to employees

2.	The cost of goods sold during the year was ¥1,850,000. Merchandise inventory decreased by ¥60,000 during the year and accounts payable decreased by ¥30,000 during the year.  Using the direct method of reporting cash flows from operating activities, cash payments for 	merchandise total
a.	¥1,880,000.
b.	¥1,820,000.
c.	¥1,760,000.
d.	¥1,940,000.


3.	Bent Company reports a $20,000 increase in inventory and a $5,000 decrease in accounts payable during the year. Cost of Goods Sold for the year was $170,000. Using the direct method of reporting cash flows from operating activities, cash payments made to suppliers were
a.	$170,000.
b.	$185,000.
c.	$195,000.
d.	$155,000.


4.	During 2011, Unruh Company had $160,000 in cash sales and $1,200,000 in credit sales.  The accounts receivable balances were $180,000 and $212,000 at December 31, 2010 and 2011, respectively.  Using the direct method of reporting cash flows from operating activities, what was the total cash collected from all customers during 2011?
a.	$1,168,000
b.	$1,392,000
c.	$1,360,000
d.	$1,328,000


5.	Marsh Company has other operating expenses of $240,000. There has been an increase in prepaid expenses of $16,000 during the year, and accrued liabilities are $24,000 lower than in the prior period. Using the direct method of reporting cash flows from operating activities, what were Marsh's cash payments for operating expenses?
a.	$228,000
b.	$232,000
c.	$200,000
d.	$280,000




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