QUIZ

Question 1

  1.  

    The following data are available for Sampson Corporation.

    Net income
    $200,000
    Depreciation expense
    60,000
    Dividends paid
    90,000
    Loss on sale of land
    15,000
    Decrease in accounts receivable
    30,000
    Decrease in accounts payable
    45,000
    Net cash provided by operating activities is:
    A.
    B.
    C.
    D.
3.75 points   

Question 2

  1.  

    Marke Inc. had cash sales of $400,000 and credit sales of $1,150,000. The accounts receivable balance increased $30,000 during the year. How much cash did Hark receive from its customers during the year?
    A.
    B.
    C.
    D.
3.75 points   

Question 3

  1.  

    Ale Company has other operating expenses of $80,000. There has been a decrease in prepaid expenses of $6,000 during the year, and accrued liabilities are $5,000 larger than in the prior period. What were Ale’s cash payments for operating expenses?
    A.
    B.
    C.
    D.
3.75 points   

Question 4

  1.  

    Spa Company uses the direct method in determining net cash provided by operating activities. The income statement shows income tax expense $85,000. Income taxes payable were $35,000 at the beginning of the year and $20,000 at the end of the year. Cash payments for income taxes are
    A.
    B.
    C.
    D.
3.75 points   

Question 5

  1.  

    The following data are available for Alamo Corporation.

    Sale of land
    $225,000
    Sale of equipment
    $130,000
    Issuance of common stock
    140,000
    Purchase of equipment
    70,000
    Payment of cash dividends
    120,000

    Net cash provided by investing activities is:

    A.
    B.
    C.
    D.
3.75 points   

Question 6

  1.  

    In Ramon Company, Treasury Stock increased $20,000 from a cash purchase, and Retained Earnings increased $80,000 as a result of net income of $120,000 and cash dividends paid of $40,000. Net cash used by financing activities is:
    A.
    B.
    C.
    D.
3.75 points   

Question 7

  1.  

    Lager Company has other operating expenses of $260,000. There has been an increase in prepaid expenses of $20,000 during the year, and accrued liabilities are $15,000 lower than in the prior period. Using the direct method of reporting cash flows from operating activities, what were Lager’s cash payments for operating expenses?

    A.
    B.
    C.
    D.
3.75 points   

Question 8

  1.  

    LRRP Company had credit sales of $650,000. The beginning accounts receivable balance was $15,000 and the ending accounts receivable balance was $140,000. What were the cash collections from customers during the period?

    < /table>

    A.
    B.
    C.
    D.
3.75 points   

Question 9

  1.  

    The following amounts were taken from the financial statements of Leaf Company:

        2014         2013    
    Total assets
    $900,000
    $1,000,000
    Net sales
    840,000
    650,000
    Gross profit
    352,000
    320,000
    Net income
    138,600
    117,000
    Weighted average number of common shares outstanding
    90,000
    90,000
    Market price of common stock
    $35
    $39

    The profit margin ratio for 2014 is

    A.
    B.
    C.
    D.
3.75 points   

Question 10

  1.  

    The following amounts were taken from the financial statements of Leaf Company:

        2014       2013    
    Total assets
    $800,000
    $880,000
    Net sales
    720,000
    650,000
    Gross profit
    352,000

    320,000
    Net income
    126,000
    117,000
    Weighted average number of common shares outstanding
    90,000
    90,000
    Market price of common stock
    $35
    $39

    The return on assets ratio for 2014 is

    A.
    B.
    C.
    D.

Leave a Reply