Question Details

Adama Company reported a net loss 



1.	Accounts receivable arising from sales to customers amounted to $40,000 and $55,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $180,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is
a.	$180,000.
b.	$195,000.
c.	$220,000.
d.	$165,000.


2.	Bush Company reported net income of $60,000 for the year. During the year, accounts receivable decreased by $8,000, accounts payable increased by $4,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is
a.	$48,000.
b.	$77,000.
c.	$59,000.
d.	$55,000.


	3.	Adama Company reported a net loss of $6,000 for the year ended December 31, 2014. During the year, accounts receivable increased $15,000, merchandise inventory decreased $12,000, accounts payable decreased by $20,000, and depreciation expense of $12,000 was recorded. During 2014, operating activities
a.	used net cash of $17,000.
b.	used net cash of $29,000.
c.	provided net cash of $24,000.
d.	provided net cash of $21,000.


	4.	The net income reported on the income statement for the current year was $220,000. Depreciation recorded on plant assets was $35,000. Accounts receivable and inventories increased by $2,000 and $8,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $12,000 respectively. How much cash was provided by operating activities?
a.	$200,000
b.	$235,000
c.	$220,000
d.	$255,000


	5.	The net income reported on the income statement for the current year was $245,000.  Depreciation was $40,000. Account receivable and inventories decreased by $12,000 and $35,000, respectively. Prepaid expenses and accounts payable increased, respectively, by $1,000 and $8,000. How much cash was provided by operating activities?
a.	$296,000
b.	$339,000
c.	$323,000
d.	$311,000




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