Question Details

Each of the following would be reported under operating activities 




a1.	During 2014, Zuma Company had $150,000 in cash sales and $1,240,000 in credit sales.  The accounts receivable balances were $180,000 and $215,000 at December 31, 2013 and 2014, respectively.  Using the direct method of reporting cash flows from operating activities, what was the total cash collected from all customers during 2014?
a.	$1,205,000
b.	$1,425,000
c.	$1,390,000
d.	$1,355,000

a2.	Lager Company has other operating expenses of $260,000. There has been an increase in prepaid expenses of $20,000 during the year, and accrued liabilities are $15,000 lower than in the prior period. Using the direct method of reporting cash flows from operating activities, what were Lager's cash payments for operating expenses?
a.	$255,000
b.	$265,000
c.	$225,000
d.	$295,000



3.	In the Papyrus Corporation, cash receipts from customers were $136,000, cash payments for operating expenses were $102,000, and one-third of the company's $9,300 income taxes were paid during the year. Net cash provided by operating activities is:
a.	$34,000.
b.	$24,700.
c.	$30,900.
d.	$27,800.


a	4.	Each of the following would be reported under operating activities except cash receipts
a.	from sales of goods.
b.	from sales of investments.
c.	of interest on loans.
d.	of dividends from investments.


a	5.	Which of the following statements concerning the statement of cash flows is true?
a.	The statement of cash flows is usually more accurate when using the indirect method.
b.	If the direct method is used, a supplementary schedule reconciling the net income to net cash from operating activities must still be provided.
c.	The statement of cash flows reflects both earnings per share and cash per share.
d.	The statement of cash flows is an optional financial statement for external reporting purposes.





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