Q5. The net income for Miller Bat Company was $3 million for the year ended December 31, 2004. Additional information is as follows: - Depreciation on fixed assets $1,500,000
- Gain from cash sales of land 200,000
- Increase in accounts payable 300,000
- Dividends paid on preferred stock 400,000
The net cash provided by operating activities in the statement of cash flows for the year ended December 31, 2004 is: A) $4,800,000. B) $4,600,000. C) $4,200,000.
Q6. Galaxy, Inc.’s balance sheet as of December 31, 2004 included the following information (in $):
| 12-31-03 | 12-31-04 | Accounts Payable | 300,000 | 500,000 | Dividends Payable | 200,000 | 300,000 | Common Stock | 1,000,000 | 1,000,000 | Retained Earnings | 700,000 | 1,000,000 |
Galaxy’s net income in 2004 was $800,000. What was Galaxy’s cash flow from financing (CFF) in 2004? A) -$300,000. B) -$500,000. C) -$400,000.
Q7. Determine the cash flow from investing given the following table: Item | Amount | Cash payment of dividends | $30 | Sale of equipment | $25 | Net income | $25 | Purchase of land | $15 | Increase in accounts payable | $20 | Sale of preferred stock | $25 | Increase in deferred taxes | $5 |
A) -$5. B) $10. C) -$10.
Q8. Which of the following statements regarding depreciation expense in the cash flow statements is TRUE? Depreciation is added back to net income when determining CFO using: A) the indirect method. B) either the direct or indirect methods. C) the direct method.
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发表于 2009-1-17 11:23
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