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Megan Corporation's net income last year was $98,000. Changes in the company's balance sheet accounts for the year appear below: Megan Corporation's net income last year was $98,000. Changes in the company's balance sheet accounts for the year appear below: The company paid a cash dividend of $36,000 and it did not dispose of any long-term investments or property, plant, and equipment. The company did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) operating activities last year was: A) $98,000 B) $178,000 C) $156,000 D) $120,000 The company paid a cash dividend of $36,000 and it did not dispose of any long-term investments or property, plant, and equipment. The company did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) operating activities last year was:


A) $98,000
B) $178,000
C) $156,000
D) $120,000

E) A) and B)
F) A) and C)

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Krech Corporation's comparative balance sheet appears below: Krech Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities.Which of the following is correct regarding the operating activities section of the statement of cash flows? A) The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be subtracted from net income B) The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be added to net income C) The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be subtracted from net income D) The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be added to net income The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities.Which of the following is correct regarding the operating activities section of the statement of cash flows?


A) The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be subtracted from net income
B) The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be added to net income
C) The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be subtracted from net income
D) The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be added to net income

E) A) and B)
F) A) and C)

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Paying wages and salaries to employees is classified as a cash outflow in the operating activities section of the statement of cash flows.

A) True
B) False

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The most recent balance sheet and income statement of Penaloza Corporation appear below: The most recent balance sheet and income statement of Penaloza Corporation appear below: The company paid a cash dividend of $18. It did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) operating activities for the year was: A) $117 B) $45 C) $36 D) $116 The company paid a cash dividend of $18. It did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) operating activities for the year was:


A) $117
B) $45
C) $36
D) $116

E) B) and C)
F) A) and D)

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Which of the following items would not be classified as an operating activity on the statement of cash flows?


A) Cash received from customers.
B) Dividends paid to the company's own stockholders.
C) Payments to government agencies for taxes.
D) Cash paid to compensate employees.

E) A) and D)
F) None of the above

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The changes in each balance sheet account for Carver Corporation during the year just completed are as follows: The changes in each balance sheet account for Carver Corporation during the year just completed are as follows: Carver Corporation's income statement for the year just ended shows the following: The company did not dispose of any property, plant, and equipment, buy any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. Carver Corporation uses the direct method to construct its statement of cash flows.Required:a. Determine the sales adjusted to the cash basis.b. Determine the cost of goods sold adjusted to the cash basis.c. Determine the selling and administrative expenses adjusted to a cash basis.d. Determine the net cash provided by (used in) operating activities.e. Determine the net cash provided by (used in) investing activities.f. Determine the net cash provided by (used in) financing activities. Carver Corporation's income statement for the year just ended shows the following: The changes in each balance sheet account for Carver Corporation during the year just completed are as follows: Carver Corporation's income statement for the year just ended shows the following: The company did not dispose of any property, plant, and equipment, buy any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. Carver Corporation uses the direct method to construct its statement of cash flows.Required:a. Determine the sales adjusted to the cash basis.b. Determine the cost of goods sold adjusted to the cash basis.c. Determine the selling and administrative expenses adjusted to a cash basis.d. Determine the net cash provided by (used in) operating activities.e. Determine the net cash provided by (used in) investing activities.f. Determine the net cash provided by (used in) financing activities. The company did not dispose of any property, plant, and equipment, buy any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. Carver Corporation uses the direct method to construct its statement of cash flows.Required:a. Determine the sales adjusted to the cash basis.b. Determine the cost of goods sold adjusted to the cash basis.c. Determine the selling and administrative expenses adjusted to a cash basis.d. Determine the net cash provided by (used in) operating activities.e. Determine the net cash provided by (used in) investing activities.f. Determine the net cash provided by (used in) financing activities.

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Requiremen...

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The following transactions occurred last year at Jolly Corporation: The following transactions occurred last year at Jolly Corporation: Based solely on the above information, the net cash provided by (used in) financing activities for the year on the statement of cash flows would be: A) $179,000 B) $59,000 C) $(109,000) D) $46,000 Based solely on the above information, the net cash provided by (used in) financing activities for the year on the statement of cash flows would be:


A) $179,000
B) $59,000
C) $(109,000)
D) $46,000

E) A) and B)
F) All of the above

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Kilduff Corporation's balance sheet and income statement appear below: Kilduff Corporation's balance sheet and income statement appear below: The company sold equipment for $19 that was originally purchased for $10 and that had accumulated depreciation of $5. The company paid a cash dividend of $44 and it did not issue any bonds payable or repurchase any of its own common stock.The net cash provided by (used in) financing activities for the year was: A) $(44) B) $(71) C) $2 D) $(29) The company sold equipment for $19 that was originally purchased for $10 and that had accumulated depreciation of $5. The company paid a cash dividend of $44 and it did not issue any bonds payable or repurchase any of its own common stock.The net cash provided by (used in) financing activities for the year was:


A) $(44)
B) $(71)
C) $2
D) $(29)

E) A) and D)
F) All of the above

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When computing the net cash provided by operating activities under the indirect method on the statement of cash flows, a decrease in common stock would be subtracted from net income.

A) True
B) False

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The most recent balance sheet and income statement of Oldaker Corporation appear below: The most recent balance sheet and income statement of Oldaker Corporation appear below: The company paid a cash dividend of $42 and it did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) investing activities for the year was: A) $(127) B) $(138) C) $138 D) $127 The company paid a cash dividend of $42 and it did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) investing activities for the year was:


A) $(127)
B) $(138)
C) $138
D) $127

E) B) and C)
F) None of the above

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Van Beeber Corporation's comparative balance sheet and income statement for last year appear below: Van Beeber Corporation's comparative balance sheet and income statement for last year appear below: The company declared and paid $49,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.On the statement of cash flows, the sales adjusted to a cash basis would be: A) $700,000 B) $688,000 C) $677,000 D) $712,000 The company declared and paid $49,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.On the statement of cash flows, the sales adjusted to a cash basis would be:


A) $700,000
B) $688,000
C) $677,000
D) $712,000

E) A) and B)
F) All of the above

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In a statement of cash flows, which of the following would be classified as an investing activity?


A) The sale of the company's own common stock for cash.
B) The sale of equipment.
C) Interest paid to a lender.
D) The issuance of bonds payable.

E) A) and B)
F) C) and D)

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Excerpts from Neuwirth Corporation's comparative balance sheet appear below: Excerpts from Neuwirth Corporation's comparative balance sheet appear below: Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method? A) The change in Accounts Receivable is added to net income; The change in Inventory is added to net income B) The change in Accounts Receivable is added to net income; The change in Inventory is subtracted from net income C) The change in Accounts Receivable is subtracted from net income; The change in Inventory is subtracted from net income D) The change in Accounts Receivable is subtracted from net income; The change in Inventory is added to net income Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?


A) The change in Accounts Receivable is added to net income; The change in Inventory is added to net income
B) The change in Accounts Receivable is added to net income; The change in Inventory is subtracted from net income
C) The change in Accounts Receivable is subtracted from net income; The change in Inventory is subtracted from net income
D) The change in Accounts Receivable is subtracted from net income; The change in Inventory is added to net income

E) A) and B)
F) None of the above

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Sales reported on the income statement totaled $750,000. The beginning balance in accounts receivable was $70,000. The ending balance in accounts receivable was $80,000. Under the direct method of determining the net cash provided by (used in) operating activities on the statement of cash flows, sales adjusted to a cash basis are:


A) $760,000
B) $740,000
C) $680,000
D) $830,000

E) A) and B)
F) A) and C)

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Manila Corporation's comparative balance sheet appears below: Manila Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was $0 and its cash dividends were $2,000. It did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year.Required:Compute the change in each balance sheet account denoted with an asterisk (*). Indicate whether the change in each balance will be recorded in the operating, investing, or financing activities section of the statement of cash flows. For items recorded in the operating activities section, also indicate whether the change will be added to or subtracted from net income. For all other items, indicate whether the change will be added as a cash inflow or subtracted as a cash outflow. The first entry has been filled in as an example. The company's net income (loss) for the year was $0 and its cash dividends were $2,000. It did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year.Required:Compute the change in each balance sheet account denoted with an asterisk (*). Indicate whether the change in each balance will be recorded in the operating, investing, or financing activities section of the statement of cash flows. For items recorded in the operating activities section, also indicate whether the change will be added to or subtracted from net income. For all other items, indicate whether the change will be added as a cash inflow or subtracted as a cash outflow. The first entry has been filled in as an example. Manila Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was $0 and its cash dividends were $2,000. It did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year.Required:Compute the change in each balance sheet account denoted with an asterisk (*). Indicate whether the change in each balance will be recorded in the operating, investing, or financing activities section of the statement of cash flows. For items recorded in the operating activities section, also indicate whether the change will be added to or subtracted from net income. For all other items, indicate whether the change will be added as a cash inflow or subtracted as a cash outflow. The first entry has been filled in as an example.

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Krech Corporation's comparative balance sheet appears below: Krech Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was $(16,800) and its cash dividends were $16,800. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities.The company's net cash provided by (used in) operating activities is: A) $34,600 B) $50,100 C) $1,000 D) $9,100 The company's net income (loss) for the year was $(16,800) and its cash dividends were $16,800. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities.The company's net cash provided by (used in) operating activities is:


A) $34,600
B) $50,100
C) $1,000
D) $9,100

E) A) and D)
F) B) and C)

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The changes in Northrup Corporation's balance sheet account balances for last year appear below: The changes in Northrup Corporation's balance sheet account balances for last year appear below: The company's income statement for the year appears below: The company declared and paid $28,000 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.On the statement of cash flows, the sales adjusted to a cash basis would be: A) $976,000 B) $982,000 C) $984,000 D) $980,000 The company's income statement for the year appears below: The changes in Northrup Corporation's balance sheet account balances for last year appear below: The company's income statement for the year appears below: The company declared and paid $28,000 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.On the statement of cash flows, the sales adjusted to a cash basis would be: A) $976,000 B) $982,000 C) $984,000 D) $980,000 The company declared and paid $28,000 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.On the statement of cash flows, the sales adjusted to a cash basis would be:


A) $976,000
B) $982,000
C) $984,000
D) $980,000

E) A) and B)
F) A) and C)

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The following events occurred last year at Dorder Corporation: The following events occurred last year at Dorder Corporation: Based on the above information, the net cash provided by (used in) investing activities for the year on the statement of cash flows would be: A) $(42,000) B) $(18,500) C) $(21,500) D) $(63,000) Based on the above information, the net cash provided by (used in) investing activities for the year on the statement of cash flows would be:


A) $(42,000)
B) $(18,500)
C) $(21,500)
D) $(63,000)

E) A) and C)
F) None of the above

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The change in each of Kendall Corporation's balance sheet accounts last year follows: The change in each of Kendall Corporation's balance sheet accounts last year follows: Kendall Corporation's income statement for the year was: There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in) operating activities on the statement of cash flows is determined using the direct method.Using the direct method, sales adjusted to a cash basis would be: A) $300,000 B) $302,000 C) $298,000 D) $305,000 Kendall Corporation's income statement for the year was: The change in each of Kendall Corporation's balance sheet accounts last year follows: Kendall Corporation's income statement for the year was: There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in) operating activities on the statement of cash flows is determined using the direct method.Using the direct method, sales adjusted to a cash basis would be: A) $300,000 B) $302,000 C) $298,000 D) $305,000 There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in) operating activities on the statement of cash flows is determined using the direct method.Using the direct method, sales adjusted to a cash basis would be:


A) $300,000
B) $302,000
C) $298,000
D) $305,000

E) A) and B)
F) C) and D)

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Brew Corporation's most recent comparative balance sheet and income statement appear below: Brew Corporation's most recent comparative balance sheet and income statement appear below: Cash dividends were $37. The company did not retire or sell any property, plant, and equipment during the year. The net cash provided by (used in) operating activities for the year was: A) $185 B) $51 C) $83 D) $191 Cash dividends were $37. The company did not retire or sell any property, plant, and equipment during the year. The net cash provided by (used in) operating activities for the year was:


A) $185
B) $51
C) $83
D) $191

E) A) and B)
F) All of the above

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