1-Star media corporation borrowed $ 20,000, issued common stock of $12,000, and
ID: 2435952 • Letter: 1
Question
1-Star media corporation borrowed $ 20,000, issued common stock of $12,000, and paid dividends of $21,000. What was Star Media Corporations net cash provided or used by financing activities?a)$53,000
b)$21,000
c)$(21,000)
d)$11,000
2- Which item does not appear on statement of cash flows prepared by the indirect method ?
a) Collections from customers
b) Net income
c) Deprecation
d) Gain on sale of land
3-Structural Systems, Inc., had accounts receivable of $19,000 at the beginning of the year and $56,000 at year-end. Revenue for the year totaled $118,000. How much cash did Structural Systems collect from customers?
a) $193,000
b) $81,000
c) $174,000
d) $137,000
4-The three main categories of cash flows are
a) Direct, indirect and hybrid.
b) Operating, investing, and financing.
c) Current, long-term and fixed.
d) Short-term, long-term, and equity.
5- The purpose of the cash flow statement is to
a) Predict future cash flows.
b) Evaluate management decisions.
c) Predict ability to make payments to lenders.
d) All of the above.
6- Which item appears on a statement of cash flows prepared by the indirect method?
a) Net income
b) Payment to suppliers
c) Collections from customers.
d) Payments of income tax.
7-Financing activities are most closely related to
a) Net income and dividends.
b) Long-term assets.
c) Current assets and current liabilities.
d) Long-term liabilities and stockholders' equity
8-The plant assets account of Betterbuilt, Inc., shows the following:
Plant Assets, Net
Beginning balance 114,000 Depreciation 28,000
Purchase 376,000 Sale ?
??????????????????????????????????????????????????????????????Ending balance 406,000
Betterbuilt, Inc., sold plant assets at a $15,000 gain, how much should Betterbuilt, Inc., report for sale?
a) Cash flows from investing activities, $71,000.
b) Cash flows from investing activities, $15,000.
c) Cash flows from investing activities, $56,000.
d) Cash flows from investing activities, $41,000.
Explanation / Answer
1 Net Cash provided by Financing activities (20,000 + 12,000 -21,000) = 11,000 2 Collections from Customers does not appear on CFS prepared by indirect method. 3 Cash collected from customers ( 118,000 + 19,000 -56,000) = 81,000 4 The three main categories of Cash Flows are Operating, Financing , Investing. 5 d.All of above 6 a. Net Income. 7 d.Long term liabilities and stock holders' equity 8 Sale ;560,000 = ( 114,000 - 28,000 + 376,000 - 406,000) 9 a) It should report 71000 ( 56,000 + 15,000)
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