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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 operating activities. On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be: A) $360,000 B) $350,000 C) $370,000 D) $381,000 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 operating activities. On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be: A) $360,000 B) $350,000 C) $370,000 D) $381,000 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 operating activities. On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be:


A) $360,000
B) $350,000
C) $370,000
D) $381,000

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

Correct Answer

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C

Freeport Corporation's income statement for last year appears below: Freeport Corporation's income statement for last year appears below: The beginning and ending balances for last year are available for the following selected accounts (the company did not dispose of any property, plant, and equipment during the year): Required: Using the direct method, prepare in good form the operating activities section of the statement of cash flows. The beginning and ending balances for last year are available for the following selected accounts (the company did not dispose of any property, plant, and equipment during the year): Freeport Corporation's income statement for last year appears below: The beginning and ending balances for last year are available for the following selected accounts (the company did not dispose of any property, plant, and equipment during the year): Required: Using the direct method, prepare in good form the operating activities section of the statement of cash flows. Required: Using the direct method, prepare in good form the operating activities section of the statement of cash flows.

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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 operating activities. On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be: A) $546,000 B) $536,000 C) $544,000 D) $540,000 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 operating activities. On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be: A) $546,000 B) $536,000 C) $544,000 D) $540,000 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 operating activities. On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be:


A) $546,000
B) $536,000
C) $544,000
D) $540,000

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

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During the year the balance in the Accounts Receivable account increased by $6,000. In order to adjust the company's net income to a cash basis using the direct method on the statement of cash flows, it would be necessary to:


A) subtract the $6,000 from the sales revenue reported on the income statement.
B) add the $6,000 to the sales revenue reported on the income statement.
C) subtract the $6,000 from the cost of goods sold reported on the income statement.
D) add the $6,000 to the cost of goods sold reported on the income statement.

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

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If accounts receivable increase during a period, then the amount of cash collected from customers will be less than the amount of sales reported on the income statement for the period.

A) True
B) False

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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 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) B) and D)
F) A) and B)

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Maloney Corporation's balance sheet and income statement appear below: Maloney Corporation's balance sheet and income statement appear below: Cash dividends were $42. The company did not dispose of any property, plant, and equipment during the year. Required: Prepare the operating activities section of the statement of cash flows using the direct method. Maloney Corporation's balance sheet and income statement appear below: Cash dividends were $42. The company did not dispose of any property, plant, and equipment during the year. Required: Prepare the operating activities section of the statement of cash flows using the direct method. Cash dividends were $42. The company did not dispose of any property, plant, and equipment during the year. Required: Prepare the operating activities section of the statement of cash flows using the direct method.

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Reven Corporation prepares its statement of cash flows using the direct method. Last year, Reven reported Income Tax Expense of $25,000. At the beginning of last year, Reven had a $5,000 balance in the Income Taxes Payable account. At the end of last year, Reven had a $9,000 balance in the account. On its statement of cash flows for last year, what amount should Reven have shown for its Income Tax Expense adjusted to a cash basis (i.e., income taxes paid) ?


A) $29,000
B) $21,000
C) $25,000
D) $4,000

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

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Last year Marton Corporation reported a cost of goods sold of $720,000 on its income statement. The following additional data were taken from the company's comparative balance sheet for the year: Last year Marton Corporation reported a cost of goods sold of $720,000 on its income statement. The following additional data were taken from the company's comparative balance sheet for the year: The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be: A) $740,000 B) $767,000 C) $747,000 D) $673,000 The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be:


A) $740,000
B) $767,000
C) $747,000
D) $673,000

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

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Last year Lawn Corporation reported sales of $115,000 on its income statement. During the year, accounts receivable decreased by $10,000 and accounts payable increased by $15,000. The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. The sales revenue adjusted to a cash basis for the year would be:


A) $125,000
B) $90,000
C) $140,000
D) $100,000

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

Correct Answer

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A

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) financing activities for the year was: A) ($42) B) $3 C) $11 D) ($28) 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) financing activities for the year was: A) ($42) B) $3 C) $11 D) ($28) 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) financing activities for the year was:


A) ($42)
B) $3
C) $11
D) ($28)

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

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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 operating activities. On the statement of cash flows, the selling and administrative expense adjusted to a cash basis would be: A) $304,000 B) $384,000 C) $310,000 D) $236,000 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 operating activities. On the statement of cash flows, the selling and administrative expense adjusted to a cash basis would be: A) $304,000 B) $384,000 C) $310,000 D) $236,000 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 operating activities. On the statement of cash flows, the selling and administrative expense adjusted to a cash basis would be:


A) $304,000
B) $384,000
C) $310,000
D) $236,000

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

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Digby Corporation's balance sheet and income statement appear below: Digby Corporation's balance sheet and income statement appear below: Cash dividends were $29. The company did not dispose of any property, plant, and equipment during the year. Required: Prepare the operating activities section of the statement of cash flows in good form using the direct method. Digby Corporation's balance sheet and income statement appear below: Cash dividends were $29. The company did not dispose of any property, plant, and equipment during the year. Required: Prepare the operating activities section of the statement of cash flows in good form using the direct method. Cash dividends were $29. The company did not dispose of any property, plant, and equipment during the year. Required: Prepare the operating activities section of the statement of cash flows in good form using the direct method.

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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 operating activities on the statement of cash flows is determined using the direct method. Using the direct method, the cost of goods sold adjusted to a cash basis would be: A) $180,000 B) $174,000 C) $177,000 D) $186,000 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 operating activities on the statement of cash flows is determined using the direct method. Using the direct method, the cost of goods sold adjusted to a cash basis would be: A) $180,000 B) $174,000 C) $177,000 D) $186,000 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 operating activities on the statement of cash flows is determined using the direct method. Using the direct method, the cost of goods sold adjusted to a cash basis would be:


A) $180,000
B) $174,000
C) $177,000
D) $186,000

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

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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 operating activities. On the statement of cash flows, the income tax expense adjusted to a cash basis would be: A) $47,000 B) $39,000 C) $31,000 D) $49,000 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 operating activities. On the statement of cash flows, the income tax expense adjusted to a cash basis would be: A) $47,000 B) $39,000 C) $31,000 D) $49,000 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 operating activities. On the statement of cash flows, the income tax expense adjusted to a cash basis would be:


A) $47,000
B) $39,000
C) $31,000
D) $49,000

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

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Dorris Corporation's balance sheet and income statement appear below: Dorris Corporation's balance sheet and income statement appear below: Cash dividends were $7. The company sold equipment for $18 that was originally purchased for $8 and that had accumulated depreciation of $6. The net cash provided by (used in) operating activities for the year was: A) $34 B) $35 C) $50 D) $41 Dorris Corporation's balance sheet and income statement appear below: Cash dividends were $7. The company sold equipment for $18 that was originally purchased for $8 and that had accumulated depreciation of $6. The net cash provided by (used in) operating activities for the year was: A) $34 B) $35 C) $50 D) $41 Cash dividends were $7. The company sold equipment for $18 that was originally purchased for $8 and that had accumulated depreciation of $6. The net cash provided by (used in) operating activities for the year was:


A) $34
B) $35
C) $50
D) $41

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

Correct Answer

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Last year, Knox Corporation reported on its income statement sales of $375,000 and cost of goods sold of $140,000. During the year, the balance in accounts receivable increased $30,000, the balance in accounts payable decreased $25,000, and the balance in inventory increased $10,000. The company uses the direct method to determine the net cash provided by operating activities on its statement of cash flows. Under the direct method, sales adjusted to a cash basis would be:


A) $295,000
B) $345,000
C) $405,000
D) $355,000

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

Correct Answer

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B

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) operating activities for the year was: A) $187 B) $231 C) $257 D) $201 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) operating activities for the year was: A) $187 B) $231 C) $257 D) $201 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) operating activities for the year was:


A) $187
B) $231
C) $257
D) $201

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

Correct Answer

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Hayward Corporation had net sales of $610,000 and cost of goods sold of $360,000 for the just completed year. Shown below are the beginning and ending balances for the year of various accounts: Hayward Corporation had net sales of $610,000 and cost of goods sold of $360,000 for the just completed year. Shown below are the beginning and ending balances for the year of various accounts: The company prepares its statement of cash flows using the direct method. On its statement of cash flows, what amount should Howard show for its cost of goods sold adjusted to a cash basis (i.e., cash paid to suppliers) ? A) $345,000 B) $366,000 C) $379,000 D) $373,000 The company prepares its statement of cash flows using the direct method. On its statement of cash flows, what amount should Howard show for its cost of goods sold adjusted to a cash basis (i.e., cash paid to suppliers) ?


A) $345,000
B) $366,000
C) $379,000
D) $373,000

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

Correct Answer

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