1.Warlace Company provided the following information from its accounting records
ID: 2497137 • Letter: 1
Question
1.Warlace Company provided the following information from its accounting records during the year:
Acquired land by signing a loan $ 150,000
Proceeds from issuing stock 90,000
Dividends paid to stockholders 55,000
Proceeds from sale of building 120,000
Purchases of inventories 45,000
Collections from customers 225,000
Payment of loan 50,000
How much is net cash provided (used) by financing activities?
$35,000
$135,000
($15,000)
$435,000
2.Which of the following is considered to be cash flow from financing activities?
Dividends received.
Cash received from customers for amounts due on account.
Proceeds from issuing common stock.
Amounts due from a customer.
3. Which statement is true with respect to the preparation of the 'cash flows from operating activities' section?
It is based on accrual income.
Operating cash flows are the difference between revenues and expenses.
It can be calculated by using the direct or indirect methods.
Cash payments for depreciation are reported in the operating activities section.
4. Carte Company reported cost of goods sold for $100,000 and depreciation expense totaling $7,000. On January 1, Carte had inventory and accounts payable of $21,000 and $24,000, respectively. On December 31, inventory and accounts payable were $28,000 and $20,000, respectively. Net income is $60,000. Beginning accounts receivable was $13,000 and ending was $12,000. How much are the cash flows from operating activities using the indirect method?
$57,000
$65,000
$77,000
$50,000
5. If return on common stockholders' equity is higher than return on total assets,
financial leverage is being used effectively.
the company is debt free.
the company should sell more stock.
All of the above.
6. Megaway, Inc. is a large food and drug retailer with more than 1,700 stores in the U.S. and Canada. The following financial information relates to fiscal 2011 and 2012.
What is Megaway, Inc's days' sales in inventory for 2012 and 2011, respectively?
32.07, 31.79
41.52, 41.91
3.12, 3.15
2.13; 3.15
7. Receiving cash from a bank loan is a(n):
financing activity.
investing activity.
operating activity.
general activity.
8. Hawthorne Company's working capital is $32,500 and its current assets are $85,100. To which of the following is the company's current ratio is closest?
0.72
1.62
2.62
1.38
(In Millions) 2012 2011 Sales $42,286 $40,185 Cost of goods sold 33,000 31,000 Receivables 577.9 461.2 Merchandise inventory 2,900 2,700Explanation / Answer
1. 35000 (90000 - 55000)
2. proceeds from issuing common stock
3. cash payments for depreciation are repoeted in operating section.
4.57000
5. all of the above
6. 32.07 , 31.79
7. financing activity
8.1.62
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