Q12. An examination of the cash receipts and payments of Xavier Corporation reveals the following:

Cash paid to suppliers for purchase of merchandise     $5,000

Cash received from customers                                      14,000

Cash paid for purchase of equipment                         22,000

Dividends paid                                                                     2,000

Cash received from issuance of preferred stock     10,000

Interest received on short-term investments              1,000

Wages paid                                                                           4,000

Repayment of loan to the bank                                      5,000

Cash from sale of land                                                     12,000

Xavier’s reported cash flow from operations will be:

A)   $6,000.

B)   -$5,000.

C)   $5,000.

Q13. An examination of the cash receipts and payments of Xavier Corporation reveals the following:

Cash paid to suppliers for purchase of merchandise     $5,000

Cash received from customers                                      14,000

Cash paid for purchase of equipment                         22,000

Dividends paid                                                                     2,000

Cash received from issuance of preferred stock     10,000

Interest received on short-term investments              1,000

Wages paid                                                                           4,000

Repayment of loan to the bank                                      5,000

Cash from sale of land                                                     12,000

Xavier's cash flow from financing (CFF) and cash flow from investing (CFI) will be:

    CFF                                                CFI

A) $10,000                                      $12,000

B) $3,000                                        $12,000

C) $3,000                                        -$10,000

Q14. In preparing its cash flow statement for the year ended December 31, 2004, Giant Corporation collected the following data:

Gain on sale of equipment                          $6,000

Proceeds from sale of equipment             10,000

Purchase of Zip Co. bonds for                    180,000 (maturity value $200,000)

Amortization of bond discount                    2,000

Dividends paid                                               (75,000)

Proceeds from sale of Treasury stock       38,000

In its December 31, 2004, statement of cash flows, what amounts should Giant report as net cash used in investing activities and net cash used in financing activities?

          Investing Activities         Financing Activities

A) $170,000                                   -$38,000

B) $178,000                                   -$37,000

C) $170,000                                   $37,000

答案和详解如下：

Q12. An examination of the cash receipts and payments of Xavier Corporation reveals the following:

Cash paid to suppliers for purchase of merchandise     $5,000

Cash received from customers                                      14,000

Cash paid for purchase of equipment                         22,000

Dividends paid                                                                     2,000

Cash received from issuance of preferred stock     10,000

Interest received on short-term investments              1,000

Wages paid                                                                           4,000

Repayment of loan to the bank                                      5,000

Cash from sale of land                                                     12,000

Xavier’s reported cash flow from operations will be:

A)   $6,000.

B)   -$5,000.

C)   $5,000.

Correct answer is A)

Cash flow relating to operating activities includes cash paid to suppliers, cash received from customers, interest received, and wages paid. –5,000 + 14,000 + 1,000 + –4,000 = 6,000.

Q13. An examination of the cash receipts and payments of Xavier Corporation reveals the following:

Cash paid to suppliers for purchase of merchandise     $5,000

Cash received from customers                                      14,000

Cash paid for purchase of equipment                         22,000

Dividends paid                                                                     2,000

Cash received from issuance of preferred stock     10,000

Interest received on short-term investments              1,000

Wages paid                                                                           4,000

Repayment of loan to the bank                                      5,000

Cash from sale of land                                                     12,000

Xavier's cash flow from financing (CFF) and cash flow from investing (CFI) will be:

    CFF                                                CFI

A) $10,000                                      $12,000

B) $3,000                                        $12,000

C) $3,000                                        -$10,000

Correct answer is C)

Cash flow relating to financing activities includes dividends paid, cash received from preferred stock, and repayment of loan. -2,000 + 10,000 + -5,000 = 3,000.

Cash flow relating to investing activities includes cash paid for equipment and cash from sale of land. -22,000 + 12,000 = -10,000.

Q14. In preparing its cash flow statement for the year ended December 31, 2004, Giant Corporation collected the following data:

Gain on sale of equipment                          $6,000

Proceeds from sale of equipment             10,000

Purchase of Zip Co. bonds for                    180,000 (maturity value $200,000)

Amortization of bond discount                    2,000

Dividends paid                                               (75,000)

Proceeds from sale of Treasury stock       38,000

In its December 31, 2004, statement of cash flows, what amounts should Giant report as net cash used in investing activities and net cash used in financing activities?

          Investing Activities         Financing Activities

A) $170,000                                   -$38,000

B) $178,000                                   -$37,000

C) $170,000                                   $37,000

Correct answer is C)

Investing Activities:
$10,000 – $180,000 = -$170,000 cash flow from investing or $170,000 used

Financing Activities:
$38,000 − $75,000 = -$37,000 cash flow from financing or $37,000 used

Note that the question asked for net cash used therefore this is a positive cash outflow.

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