Choco Company prepaid insurance was dollar 10,000 at December 31, 2012, and doll

Question

Choco Company prepaid insurance was dollar 10,000 at December 31, 2012, and dollar 15,000 at December 31, 2013, Choco reported insurance expense of dollar 25,000 on the 2013 income statement. What amount would be reported in the statement of cash flows as insurance paid using the direct method? Dollar 20,000. Dollar 25,000. Dollar 30,000. Dollar 35,000. Choco Corporation reported balances in the following accounts for the current year: Beginning Ending Inventory dollar 3,000 dollar 2,000 Accounts payable dollar 4,000 dollar 6,000 Cost of goods sold was $ 12,000, What was the amount of cash paid to suppliers? $ 9,000 $ 11,000 $ 13,000. $ 15,000 If bond interest expense is $ 5,000, bond interest payable increased by $ 1,000 and bond discount decreased by $1,200,cash paid for bond interest is: $ 2,800. $ 4,800. $ 5,200. $ 7,200. Choco Company reported net income for 2013 in the amount of $ 12,000. The company's financial statements also included the following Decrease in accounts receivable 10,000 Increase in inventory 2,000 Depreciation expense 4,000 What is net cash provided by operating activities? $ 8,000 $ 20,000 $ 24,000 $ 26,000 Choco company had the following account balances for 2013: January 1 December 31 Accounts receivable $ 100,000 $ 220,000 Accounts payable $ 380,000 $ 250,000 Choco reported net income of $ 400,000 for 2013. Assuming no other changes in current account balances, what is the amount of net cash provided by operating activities for 2013 reported in the statement of cash flows? $ 650,000 $ 270,000 $ 280,000. $ 150,000

Explanation / Answer

6. C $30000

Note:-    Insurance Expense Account      

To prepaid insurance in beginning 10000 By profit and loss 25000

To cash (Balanceing figure) 30000 By prepaid insurance in end 15000

7. A $9000

   Note:- Cost of goods sold = opening inventory + purchase - closing inventory

12000 = 3000 + purchase -2000

purchase = 11000

Payment to creditor = opening balance + purchase - closing balance

= 4000 + 11000 - 6000

= 9000

9 C $24000

   Note:-    Net income = 12000

   add: depreciation =4000

add: decrease in receivable =10000

less: increase in Inventory = 2000

   cash flow from operating activity = 24000

deprecaiton will be added back to net income , because it is a non cash expense.

10. D $150000

   Note:- net income 400000

   less: increase in receivable 120000 (220000 - 100000)

   less:decrease in payable 130000    (380000 - 250000)

   cash flow from operating activity 150000

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