Q1. The following information is from the balance sheet of Silverstone Company: Net Income for 5/1/05 to 5/31/05: $8,000
Balance 5/01/05 | Account | Balance 5/31/05 | $2,000 | Inventory | $1,750 | $1,200 | Prepaid exp. | $1,700 | $800 | Accum. Depr. | $975 | $425 | Accounts payable | $625 | $650 | Bonds payable | $550 |
Using the indirect method, calculate the cash flow from operations for Silverstone Company as of 5/31/05: A) Increase in cash of $7,725. B) Increase in cash of $8,125. C) Increase in cash of $8,025.
Q2. Convenience Travel Corp.’s financial information for the year ended December 31, 2004 included the following: Property Plant & Equipment $15,000,000 Accumulated Depreciation 9,000,000 The only asset owned by Convenience Travel in 2005 was a corporate jet airplane. The airplane was being depreciated over a 15-year period on a straight-line basis at a rate of $1,000,000 per year. On December 31, 2005 Convenience Travel sold the airplane for $10,000,000 cash. Net income for the year ended December 31, 2005 was $12,000,000. Based on the above information, and ignoring taxes, what is cash flow from operations (CFO) for Convenience Travel for the year ended December 31, 2005? A) $8,000,000. B) $12,000,000. C) $13,000,000.
Q3. Darth Corporation’s most recent income statement shows net sales of $6,000, and Darth’s marginal tax rate is 40%. The total expenses reported were $3,200, all of which were paid in cash. In addition, depreciation expense was reported at $800. A further examination of the most recent balance sheets reveals that accounts receivable during that period increased by $1,000. The cash flow from operating activities reported by Darth should be:
A) $1,200. B) $2,200. C) $1,000.
Q4. Use the following financial data for Moose Printing Corporation to calculate the cash flow from operations (CFO) using the indirect method. - Net income: $225
- Increase in accounts receivable: $55
- Decrease in inventory: $33
- Depreciation: $65
- Decrease in accounts payable: $25
- Increase in wages payable: $15
- Decrease in deferred taxes: $10
- Purchase of new equipment: $65
- Dividends paid: $75
A) Increase in cash of $248. B) Increase in cash of $173. C) Increase in cash of $183.
| 
发表于 2009-1-17 13:46
| 
