答案如下
Mark Industries Income Statement and related notes for the year ended December 31, 2001, are as follows (in $):
|
Sales |
42,000,000 |
|
Cost of Goods Sold |
(32,000,000) |
|
Wages Expense |
(1,500,000) |
|
Depreciation Expense |
(2,500,000) |
|
Interest Expense |
(1,000,000) |
|
Income Tax Expense |
(2,000,000) |
|
Net Income |
2,000,000 |
- Wages Payable increased $100,000 in 2001.
- Accumulated Depreciation increased $2,500,000 in 2001.
- Interest Payable decreased $200,000 in 2001.
· Income Taxes Payable increased $500,000 in 2001.
· No dividends were declared in 2001.
· Dividends of $100,000 were declared in 2000 and paid in 2001.
Mark Industries’ cash flow from operations (CFO) for the year ended December 31, 2001, was:
|
A) |
$4,800,000. |
|
B) |
$4,500,000. |
|
C) |
$4,900,000. |
|
D) |
$4,400,000. |
Answer C
Using the indirect method, net income is increased by depreciation expense, the increase in wages payable and the increase in income taxes payable, and then is reduced by the decrease in interest payable. Dividends paid are financing activities. ($2,000,000 + $2,500,000 + $100,000 + $500,000 - $200,000 = $4,900,000.) |
发表于 2006-4-7 19:49
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