Q28. An analyst has gathered the following information about a company:
Income Statement for the Year | |||||||
| |||||||
Sales | | $1,500 | |||||
Expenses | | | |||||
| COGS | $1,300 | | ||||
| Depreciation | 20 | | ||||
| Goodwill | 10 | | ||||
| Int. Expenses | 40 | | ||||
| | Total expenses | | 1,370 | |||
Income from cont. op. | | 130 | |||||
| | Gain on sale | | 30 | |||
Income before tax | | 160 | |||||
Income tax | | 64 | |||||
Net Income | | $96 | |||||
Additional Information: | |
Dividends paid | $30 |
Common stock sold | 20 |
Equipment purchased | 50 |
Bonds issued | 80 |
Fixed asset sold for (original cost of $100 with accumulated depreciation of $70) | 60 |
Accounts receivable decreased by | 30 |
Inventory decreased by | 20 |
Accounts payable increased by | 20 |
Wages payable decreased by | 10 |
What is the cash flow from financing?
A) $110.
B) $130.
C) $70.
Q29. The Red Company’s balance sheet as of December 31, 2004 was as follows:
| Dec. 31, 2003 | Dec. 31, 2004 |
Cash | $1,500,000 | $1,900,000 |
Accounts Receivable | 3,000,000 | 3,400,000 |
Inventory | 2,300,000 | 2,500,000 |
Property, Plant & Equipment | 16,700,000 | 19,700,000 |
Less Accumulated Depreciation | (5,300,000) | (8,200,000) |
Total Assets | $18,200,000 | $19,300,000 |
| | |
Accounts Payable | $2,100,000 | $1,900,000 |
Interest Payable | 800,000 | 1,200,000 |
Income Taxes Payable | 1,000,000 | 800,000 |
Notes Payable | 2,700,000 | 2,900,000 |
Deferred Income Taxes | 2,600,000 | 2,900,000 |
Common Stock | 1,000,000 | 1,000,000 |
Retained Earnings | 8,000,000 | 8,600,000 |
| $18,200,000 | $19,300,000 |
Red’s interest expense was $900,000 and income tax expense was $
The other cash outflows section of Cash Flow from Operations (CFO) for 2004 would total:
A) $1,400,000.
B) $2,100,000.
C) $1,700,000.
Q30. Financial information for Jefferson Corp. for the year ended December 31st, was as follows:
Sales | $3,000,000 |
Purchases | 1,800,000 |
Inventory at Beginning | 500,000 |
Inventory at Ending | 800,000 |
Accounts Receivable at Beginning | 300,000 |
Accounts Receivable at Ending | 200,000 |
Other Operating Expenses Paid | 400,000 |
Based upon this data and using the direct method, what was Jefferson Corp.’s cash flow from operations (CFO) for the year ended December 31st?
A) $1,200,000.
B) $800,000.
C) $900,000.
答案和详解如下：
Q28. An analyst has gathered the following information about a company:
Income Statement for the Year | |||||||
| |||||||
Sales | | $1,500 | |||||
Expenses | | | |||||
| COGS | $1,300 | | ||||
| Depreciation | 20 | | ||||
| Goodwill | 10 | | ||||
| Int. Expenses | 40 | | ||||
| | Total expenses | | 1,370 | |||
Income from cont. op. | | 130 | |||||
| | Gain on sale | | 30 | |||
Income before tax | | 160 | |||||
Income tax | | 64 | |||||
Net Income | | $96 | |||||
Additional Information: | |
Dividends paid | $30 |
Common stock sold | 20 |
Equipment purchased | 50 |
Bonds issued | 80 |
Fixed asset sold for (original cost of $100 with accumulated depreciation of $70) | 60 |
Accounts receivable decreased by | 30 |
Inventory decreased by | 20 |
Accounts payable increased by | 20 |
Wages payable decreased by | 10 |
What is the cash flow from financing?
A) $110.
B) $130.
C) $70.
Correct answer is C)
Dividends paid -$30
Bonds issued 80
CFF $70
Q29. The Red Company’s balance sheet as of December 31, 2004 was as follows:
| Dec. 31, 2003 | Dec. 31, 2004 |
Cash | $1,500,000 | $1,900,000 |
Accounts Receivable | 3,000,000 | 3,400,000 |
Inventory | 2,300,000 | 2,500,000 |
Property, Plant & Equipment | 16,700,000 | 19,700,000 |
Less Accumulated Depreciation | (5,300,000) | (8,200,000) |
Total Assets | $18,200,000 | $19,300,000 |
| | |
Accounts Payable | $2,100,000 | $1,900,000 |
Interest Payable | 800,000 | 1,200,000 |
Income Taxes Payable | 1,000,000 | 800,000 |
Notes Payable | 2,700,000 | 2,900,000 |
Deferred Income Taxes | 2,600,000 | 2,900,000 |
Common Stock | 1,000,000 | 1,000,000 |
Retained Earnings | 8,000,000 | 8,600,000 |
| $18,200,000 | $19,300,000 |
Red’s interest expense was $900,000 and income tax expense was $
The other cash outflows section of Cash Flow from Operations (CFO) for 2004 would total:
A) $1,400,000.
B) $2,100,000.
C) $1,700,000.
Correct answer is A)
Other cash outflows is the third step in calculating CFO using the direct method. It consists of Cash taxes paid + Cash interest paid.
Cash interest paid = interest expense less increase in interest payable: ($900,000 – (1,200,000 - $800,000) =) $500,000.
Cash taxes paid = | | tax expense of $1,000,000 |
| + | decrease in income taxes payable (1,000,000-800,000) = 200,000 |
| - | increase in deferred income taxes (2,600,000-2,900,000) = 300,000 |
| | $900,000 |
Other cash outflows = $500,000 + 900,000 = $1,400,000
Q30. Financial information for Jefferson Corp. for the year ended December 31st, was as follows:
Sales | $3,000,000 |
Purchases | 1,800,000 |
Inventory at Beginning | 500,000 |
Inventory at Ending | 800,000 |
Accounts Receivable at Beginning | 300,000 |
Accounts Receivable at Ending | 200,000 |
Other Operating Expenses Paid | 400,000 |
Based upon this data and using the direct method, what was Jefferson Corp.’s cash flow from operations (CFO) for the year ended December 31st?
A) $1,200,000.
B) $800,000.
C) $900,000.
Correct answer is C)
Cost of goods sold was (beginning inventory plus purchases less ending inventory) ($500,000 + $1,800,000 − $800,000 =) $1,500,000. Cash flow from operations under the direct method is calculated by:
§ Cash collections: $3,100,000 (net sales plus decrease in accounts receivable) of ($3,000,000 + ($300,000 − $200,000))
§ Less direct cash inputs: $1,800,000 (cost of goods sold plus increase in inventory) of ($1,500,000 + $300,000)
§ Less other cash outflows of $400,000
CFO = ($3,100,000 – 1,800,000 – 400,000) = $900,000
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