答案和详解如下： Q1. Impala Corporation reported the following financial information: | 2006 | 2007 | Balance sheet values as of December 31: |
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| Prepaid insurance | $650,000 | $475,000 |
| Interest payable | 250,000 | 300,000 | Cash flows for the year ended December 31: |
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| Insurance premiums paid | $845,000 | $750,000 |
| Interest paid | 900,000 | 900,000 |
Calculate Impala’s insurance expense and interest expense for the year ended December 31, 2007. Insurance expense
Interest expense
A)
$925,000 $950,000 B) $1,020,000 $950,000 C) $925,000 $850,000 Correct answer is A) Cash paid for insurance = insurance expense + change in prepaid insurance, so insurance expense for 2007 is equal to $925,000 [($750,000 cash paid for insurance − (-$175,000)]. Interest expense for 2007 is equal to $950,000 ($900,000 cash interest paid + $50,000 increase in interest payable). Q2. What is the impact on accounts receivable if sales exceed cash collections and what is the impact on accounts payable if cash paid to suppliers exceeds purchases? A) Both will increase. B) Only accounts receivable will increase. C) Only accounts payable will increase. Correct answer is B) If a firm sells more than it collects, accounts receivable will increase. If a firm pays suppliers more than it purchases, accounts payable will decrease. Q3. Murray Company reported the following revenues and expenses for the year ended 2007: Sales revenue $200,000 Wage expense 89,000 Insurance expense 17,000 Interest expense 10,400 Depreciation expense 50,000 Following are the related balance sheet accounts: 2007 2006 Unearned revenue $15,600 $13,200 Wages payable 5,400 6,600 Prepaid insurance 1,200 0 Interest payable 500 1,600 Accumulated depreciation 95,000 45,000 Calculate cash collections and cash expenses. Cash collections
Cash expenses
A)
$202,400 $119,900 B) $202,400 $58,100 C) $197,600 $119,900 Correct answer is A) Cash collections are $202,400 ($200,000 sales + $2,400 increase in unearned revenue). Cash expenses are $119,900 (–$89,000 wages expense – $1,200 decrease in wages payable – $17,000 insurance expense – $1,200 increase in prepaid insurance – $10,400 interest expense – $1,100 decrease in interest payable). Depreciation expense is a non-cash expense. Q4. Maverick Company reported the following financial information for 2007: in millions
Beginning accounts receivable $180 Ending accounts receivable 225 Sales 11,000 Beginning inventory 2,000 Ending inventory 2,300 Purchases 8,100 Beginning accounts payable 1,600 Ending accounts payable 1,200 Calculate Maverick’s cost of goods sold and cash paid to suppliers for 2007. Cost of goods sold
Cash paid to suppliers
A) $7,800 million $7,100 million B)
$7,800 million $8,500 million C) $3,800 million $8,500 million Correct answer is B) Cost of goods sold is equal to $7,800 million ($2,000 million beginning inventory + $8,100 million purchases – $2,300 million ending inventory). Cash paid to suppliers is equal to $8,500 million (–$7,800 COGS – $300 million increase in inventory – $400 million decrease in accounts payable). Alternate solution: Cash paid to suppliers is equal to $8,500 million (–$8,100 million purchases – $400 decrease in accounts payable). | 
发表于 2009-1-17 11:14
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