Deck 13: Statement of Cash Flows

Question 1

The statement of cash flows includes a firm's cash equivalents such as money market funds, in addition to cash.

Answer 1

True

Question 2

Cash received from the sale of one of a company's warehouses is classified as a cash flow from investing activities in a statement of cash flows.

Answer 2

True

Question 3

Cash paid as dividends to stockholders is classified as a cash flow from investing activities in a statement of cash flows.

Answer 3

False

Question 4

Cash received from customers for services rendered is classified as a cash flow from operating activities in a statement of cash flows.

Question 5

Two different methods of determining and presenting the net cash flows from operating activities are the indirect method and the reconciliation method.

Question 6

The operating activities section of the statement of cash flows shows a reconciliation of net income to the net cash provided by operating activities amount under the direct method.

Question 7

The direct method of presenting the net cash flow from operating activities shows the major categories of operating cash receipts and payments.

Question 8

If accounts payable increase during an accounting period, then the cash paid for merchandise purchased is less than the merchandise purchases for the period.

Question 9

If prepaid insurance decreases during an accounting period, then the cash paid for insurance is less than the period's insurance expense.

Question 10

Depreciation expense is deducted from net income in determining cash flows provided by operating activities under the indirect method.

Question 11

The operating-cash-flow-to-capital-expenditures ratio in excess of 1.0 means that the firms' current operating activities are providing cash in excess of the amount needed to fund its desired investment in plant and intangible assets.

Question 12

The statement of cash flows explains changes in a firm's:

A) Cash on hand and cash in the bank
B) Cash and cash equivalents
C) Cash, cash equivalents, and accounts receivable
D) Working capital

Question 13

Which of the following is a cash equivalent for purposes of preparing a statement of cash flows?

A) Accounts receivable
B) Investment in subsidiary company common stock
C) Inventory
D) Investment in a money market fund

Question 14

To qualify as a cash equivalent, an investment must be:

A) Easily convertible into a known cash amount
B) Three months or more from maturity
C) Over $500,000 in amount
D) All of the above

Question 15

A typical example of a cash equivalent is an investment in:

A) Treasury stock
B) Commercial paper
C) Stock of other companies selling on an exchange
D) All of the above

Question 16

Which of the following is not a cash equivalent for purposes of preparing a statement of cash flows?

A) Investment in common stock of other companies
B) Investment in Treasury bills
C) Investment in a money market fund
D) Investment in commercial paper

Question 17

A firm's net cash flow from operating activities includes:

A) Cash received from sale of equipment
B) Cash received from issuance of common stock
C) Cash received from sale of merchandise
D) Cash received as payment of loan from a borrower

Question 18

A firm's cash flow from investing activities includes:

A) Cash received from the sale of a plant asset
B) Cash paid as dividends
C) Cash received from the rendering of services to customers
D) Cash paid to retire bonds payable

Question 19

A firm's cash flow from financing activities includes:

A) Cash paid to reacquire treasury stock
B) Cash paid for merchandise purchased
C) Cash received from sale of investment in bonds
D) Cash received as interest income

Question 20

In a statement of cash flows, interest paid to creditors is classified as a cash flow from:

A) Operating activities
B) Trading activities
C) Financing activities
D) Investing activities

Question 21

Which of the following is disclosed separately in a statement of cash flows using the indirect method?

A) Net income
B) Cash received from customers
C) Cash paid to employees and other suppliers
D) Increase in retained earnings for the period

Question 22

Ashford Company has an accrual basis net income of $270,000 in 2019 and the following related items:
How much is Ashford's net cash flow from operating activities in 2019?

A) $261,000
B) $303,000
C) $186,000
D) $318,000

Question 23

Baxa Company has an accrual basis net income of $360,000 in 2019 and the following related items:
How much is Baxa's net cash flow from operating activities in 2019?

A) $348,000
B) $416,000
C) $472,000
D) $424,000

Question 24

Demi, Inc. has an accrual basis net loss of $60,000 in 2019 and the following related items:
How much is Lovato's net cash flow from operating activities in 2019?

A) $105,000
B) $ (12,000)
C) $ 3,000
D) $(39,000)

Question 25

Luna, Inc. has an accrual basis net loss of $80,000 in 2019 and the following related items:
How much is Lunas' net cash flow from operating activities in 2019?

A) $140,000
B) $(16,000)
C) $ 4,000
D) $ (52,000)

Question 26

Tina's Art Supplies has an accrual basis net income of $156,000 in 2019 and the following related items:
What is Tina's Art Supplies' net cash flow from operating activities in 2019?

A) $249,000
B) $141,000
C) $111,000
D) $243,000

Question 27

Bruder's Office Supplies, Inc. has an accrual basis net income of $208,000 in 2019 and the following related items:
What is Bruder's Office Supplies, Inc.'s net cash flow from operating activities in 2019?

A) $332,000
B) $280,000
C) $236,000
D) $328,000

Question 28

A company reported annual sales revenue of $1,650,000 in 2019. During the year, accounts receivable decreased from a $42,000 beginning balance to a $36,000 ending balance. Accounts payable decreased from a $33,000 beginning balance to a $24,000 ending balance.
How much is cash received from customers for the year?

A) $1,647,000
B) $1,614,000
C) $1,656,000
D) $1,662,000

Question 29

A company reported annual sales revenue of $2,200,000 in 2019. During the year, accounts receivable decreased from a $56,000 beginning balance to a $48,000 ending balance. Accounts payable decreased from a $44,000 beginning balance to a $32,000 ending balance.
How much is cash received from customers for the year?

A) $2,192,000
B) $1,848,000
C) $2,208,000
D) $2,196,000

Question 30

A company reported annual sales revenue of $2,535,000 in 2019. During the year accounts receivable increased from a $42,000 beginning balance to a $57,000 ending balance. Accounts payable decreased from a $39,000 beginning balance to a $18,000 ending balance.
How much is cash received from customers for the year?

A) $2,520,000
B) $2,541,000
C) $2,592,000
D) $2,550,000

Question 31

A company reported cost of goods sold of $800,000 for the 2019 year. During the year, inventory increased from a $46,000 beginning balance to a $70,000 ending balance, and accounts payable increased from a $24,000 beginning balance to a $28,000 ending balance.
How much is the cash paid for merchandise purchased during the year?

A) $860,000
B) $772,000
C) $824,000
D) $820,000

Question 32

A company reported cost of goods sold of $2,400,000 for the 2019 year. During the year, inventory increased from a $138,000 beginning balance to a $210,000 ending balance, and accounts payable increased from a $72,000 beginning balance to a $84,000 ending balance.
How much is the cash paid for merchandise purchased during the year?

A) $2,472,000
B) $2,556,000
C) $2,340,000
D) $2,460,000

Question 33

A company reported annual income tax expense of $170,000 in 2019. During the year, income tax payable increased from a $12,400 beginning balance to a $17,600 ending balance.
How much is cash paid for income taxes during the year?

A) $164,800
B) $169,200
C) $175,200
D) $187,600

Question 34

A company reported annual income tax expense of $510,000 in 2019. During the year, income tax payable increased from a $37,200 beginning balance to a $52,800 ending balance.
How much is cash paid for income taxes during the year?

A) $494,400
B) $525,600
C) $544,800
D) $457,200

Question 35

With reference to the reporting of net cash flow from operating activities, which method do most companies use and why?

A) Indirect method because it provides better information for decision making
B) Direct method because it is based on the accrual basis of accounting
C) Direct method because it requires a supplemental indirect method section
D) Indirect method because it is less expensive to prepare

Question 36

The following amounts have been taken from the recent financial statements for Merema Industries:
To the closest hundredth, which of the following amounts is Merema's operating-cash-flow-to-current-liabilities ratio?

A) 2.51
B) 2.23
C) 2.88
D) 1.83

Question 37

The following amounts have been taken from the recent financial statements for Becky Industries:
To the closest hundredth, which of the following amounts is Becky's operating-cash-flow-to-current-liabilities ratio?

A) 2.71
B) 2.11
C) 2.05
D) 1.73

Question 38

Which of the following is a required separate disclosure for firms using the direct method in the statement of cash flows?

A) A reconciliation of net income to net cash flows from operating activities
B) A list of all noncash investing and financing transactions
C) The policy for determining which highly liquid, short-term investments are treated as cash equivalents
D) All of the above

Question 39

Which of the following is not disclosed in a statement of cash flows using the direct method?

A) Cash paid for interest
B) Cash received from customers
C) Cash received from issuing stock
D) Depreciation expense

Question 40

For the current year, Rex Company's net cash flow from operating activities is $210,000; its beginning total liabilities were $300,000, and its ending total liabilities were $750,000.
The company's operating-cash-flow-to-total-liabilities ratio for the year is:

A) 0.40
B) 0.35
C) 0.28
D) 0.71

Question 41

For the current year, Cart Company's net cash flow from operating activities is $240,000; its beginning total liabilities were $400,000, and its ending total liabilities were $900,000.
The company's operating-cash-flow-to-total-liabilities ratio for the year is:

A) 0.32
B) 0.37
C) 0.27
D) 0.60

Question 42

Billy Corporation had the following data for 2019:
Joel's operating-cash-flow-to-current-liabilities ratio for 2019 is:

A) 0.76
B) 0.61
C) 1.02
D) 0.87

Question 43

Cooper Corporation had the following data for 2019:
Conner's operating-cash-flow-to-current-liabilities ratio for 2019 is:

A) 0.69
B) 0.58
C) 0.87
D) 0.74

Question 44

Edmonds Corporation had the following data for 2019:
Redman's operating-cash-flow-to-current-liabilities ratio for 2019 is:

A) 0.87
B) 0.60
C) 0.57
D) 0.50

Question 45

Bauer Corporation had the following data for 2019:
Eddie's operating-cash-flow-to-current-liabilities ratio for 2019 is:

A) 0.43
B) 0.55
C) 0.48
D) 0.77

Question 46

Use the following information for questions below
Van Beek Corporation reported the following transactions for 2019:
1. Sold equipment for $21,000. The original cost was $45,000; the book value is $18,000
2. Issued 2,000 shares of $15 par value common stock for $36 per share
3. Paid $9,000 for an Insurance policy which goes into effect in January 2020
4. Recognized $6,000 in Interest expense on Dec 31, 2019 - to be paid on April 30, 2020
5. Received $24,000 as collections from customers for 2018 sales, and $54,000 for 2019 sales
6. Reacquired 300 shares of its own common stock at $60 per share
7. Received $6,000 in dividends on stock held as available for sale
8. Recorded depreciation expense for $15,000
9. Paid $3,000 of dividends to common stockholders
10. Purchased equipment costing $195,000, by making a cash down payment of $60,000 and signing a note for the remaining $135,000.
11. Acquired a building with a market value of $750,000 by issuing 20,000 shares of common stock.
12. Paid salaries of $54,000
13. Cash received from sale of available for sale securities $18,000
14. Repaid a loan, which included $15,000 of the principal and $3,000 in interest
Van Beek Corporation uses the direct method for preparing the 2019 Statement of Cash Flows.

-The net cash flow from operating activities is:

A) $(24,000)
B) $ 3,000
C) $ 18,000
D) $ 12,000

Question 47

Use the following information for questions below
Van Beek Corporation reported the following transactions for 2019:
1. Sold equipment for $21,000. The original cost was $45,000; the book value is $18,000
2. Issued 2,000 shares of $15 par value common stock for $36 per share
3. Paid $9,000 for an Insurance policy which goes into effect in January 2020
4. Recognized $6,000 in Interest expense on Dec 31, 2019 - to be paid on April 30, 2020
5. Received $24,000 as collections from customers for 2018 sales, and $54,000 for 2019 sales
6. Reacquired 300 shares of its own common stock at $60 per share
7. Received $6,000 in dividends on stock held as available for sale
8. Recorded depreciation expense for $15,000
9. Paid $3,000 of dividends to common stockholders
10. Purchased equipment costing $195,000, by making a cash down payment of $60,000 and signing a note for the remaining $135,000.
11. Acquired a building with a market value of $750,000 by issuing 20,000 shares of common stock.
12. Paid salaries of $54,000
13. Cash received from sale of available for sale securities $18,000
14. Repaid a loan, which included $15,000 of the principal and $3,000 in interest
Van Beek Corporation uses the direct method for preparing the 2019 Statement of Cash Flows.

-The net cash flow from investing activities is:

A) $(21,000)
B) $(63,000)
C) $ (3,000)
D) $(36,000)

Question 48

Use the following information for questions below
Van Beek Corporation reported the following transactions for 2019:
1. Sold equipment for $21,000. The original cost was $45,000; the book value is $18,000
2. Issued 2,000 shares of $15 par value common stock for $36 per share
3. Paid $9,000 for an Insurance policy which goes into effect in January 2020
4. Recognized $6,000 in Interest expense on Dec 31, 2019 - to be paid on April 30, 2020
5. Received $24,000 as collections from customers for 2018 sales, and $54,000 for 2019 sales
6. Reacquired 300 shares of its own common stock at $60 per share
7. Received $6,000 in dividends on stock held as available for sale
8. Recorded depreciation expense for $15,000
9. Paid $3,000 of dividends to common stockholders
10. Purchased equipment costing $195,000, by making a cash down payment of $60,000 and signing a note for the remaining $135,000.
11. Acquired a building with a market value of $750,000 by issuing 20,000 shares of common stock.
12. Paid salaries of $54,000
13. Cash received from sale of available for sale securities $18,000
14. Repaid a loan, which included $15,000 of the principal and $3,000 in interest
Van Beek Corporation uses the direct method for preparing the 2019 Statement of Cash Flows.

-The net cash flow from financing activities is:

A) $51,000
B) $36,000
C) $ 9,000
D) $54,000

Question 49

Use the following information for questions below
Herman Corporation reported the following transactions for 2019:
1. Sold equipment for $28,000. The original cost was $60,000; the book value is $24,000
2. Issued 2,000 shares of $20 par value common stock for $48 per share
3. Paid $12,000 for an Insurance policy which goes into effect in January 2020
4. Recognized $8,000 in Interest expense on Dec 31, 2019 - to be paid on April 30, 2020
5. Received $32,000 as collections from customers for 2018 sales, and $72,000 for 2019 sales
6. Reacquired 300 shares of its own common stock at $80 per share
7. Received $8,000 in dividends on stock held as available for sale
8. Recorded depreciation expense for $20,000
9. Paid $4,000 of dividends to common stockholders
10. Purchased equipment costing $260,000, by making a cash down payment of $80,000 and signing a note for the remaining $180,000.
11. Acquired a building with a market value of $1,000,000 by issuing 20,000 shares of common stock.
12. Paid salaries of $72,000
13. Cash received from sale of available for sale securities $24,000
14. Repaid a loan, which included $20,000 of the principal and $4,000 in interest
Herman Corporation uses the direct method for preparing the 2019 Statement of Cash Flows.

-The net cash flow from operating activities is:

A) $(32,000)
B) $ 4,000
C) $24,000
D) $16,000

Question 50

Use the following information for questions below
Herman Corporation reported the following transactions for 2019:
1. Sold equipment for $28,000. The original cost was $60,000; the book value is $24,000
2. Issued 2,000 shares of $20 par value common stock for $48 per share
3. Paid $12,000 for an Insurance policy which goes into effect in January 2020
4. Recognized $8,000 in Interest expense on Dec 31, 2019 - to be paid on April 30, 2020
5. Received $32,000 as collections from customers for 2018 sales, and $72,000 for 2019 sales
6. Reacquired 300 shares of its own common stock at $80 per share
7. Received $8,000 in dividends on stock held as available for sale
8. Recorded depreciation expense for $20,000
9. Paid $4,000 of dividends to common stockholders
10. Purchased equipment costing $260,000, by making a cash down payment of $80,000 and signing a note for the remaining $180,000.
11. Acquired a building with a market value of $1,000,000 by issuing 20,000 shares of common stock.
12. Paid salaries of $72,000
13. Cash received from sale of available for sale securities $24,000
14. Repaid a loan, which included $20,000 of the principal and $4,000 in interest
Herman Corporation uses the direct method for preparing the 2019 Statement of Cash Flows.

-The net cash flow from investing activities is:

A) $(28,000)
B) $(84,000)
C) $ (4,000)
D) $(48,000)

Question 51

Use the following information for questions below
Herman Corporation reported the following transactions for 2019:
1. Sold equipment for $28,000. The original cost was $60,000; the book value is $24,000
2. Issued 2,000 shares of $20 par value common stock for $48 per share
3. Paid $12,000 for an Insurance policy which goes into effect in January 2020
4. Recognized $8,000 in Interest expense on Dec 31, 2019 - to be paid on April 30, 2020
5. Received $32,000 as collections from customers for 2018 sales, and $72,000 for 2019 sales
6. Reacquired 300 shares of its own common stock at $80 per share
7. Received $8,000 in dividends on stock held as available for sale
8. Recorded depreciation expense for $20,000
9. Paid $4,000 of dividends to common stockholders
10. Purchased equipment costing $260,000, by making a cash down payment of $80,000 and signing a note for the remaining $180,000.
11. Acquired a building with a market value of $1,000,000 by issuing 20,000 shares of common stock.
12. Paid salaries of $72,000
13. Cash received from sale of available for sale securities $24,000
14. Repaid a loan, which included $20,000 of the principal and $4,000 in interest
Herman Corporation uses the direct method for preparing the 2019 Statement of Cash Flows.

-The net cash flow from financing activities is:

A) $68,000
B) $48,000
C) $12,000
D) $72,000

Question 52

Consider the following events:
$\bullet$ Cash of $168,000 was used to purchase a used truck.
$\bullet$ Cash of $120,000 was used to retire bonds.
$\bullet$ Cash of $75,000 was received from the sale of an investment at a loss.
$\bullet$ Cash dividends of $42,000 were received from an investment.
$\bullet$ Plant assets were depreciated $18,000, under the straight-line method.
Compute the net cash flow from investing activities (parentheses indicate an outflow):

A) $ 75,000
B) $(213,000)
C) $ (21,000)
D) $ (93,000)

Question 53

Consider the following events:
$\bullet$ Cash of $204,000 was used to purchase a new bulldozer.
$\bullet$ Cash of $160,000 was used to retire bonds.
$\bullet$ Cash of $100,000 was received from the sale of an investment at a loss.
$\bullet$ Cash dividends of $56,000 were received from an investment.
$\bullet$ Plant assets were depreciated $24,000, under the straight-line method.
Compute the net cash flow from investing activities (parentheses indicate an outflow):

A) $ 100,000
B) $(210,000)
C) $ (44,000)
D) $(104,000)

Question 54

Consider the following events:
$\bullet$ 25,000 shares of preferred stock, cumulative, 5%, $30 par was issued for $45 a share.
$\bullet$ The annual cash dividend was declared and paid to the above preferred stock.
$\bullet$ The company purchased 12,000 shares of common stock at $51 per share to be held as Treasury stock.
$\bullet$ Interest of $24,000 was paid to bondholders.
$\bullet$ Bonds Payable with a par value of $300,000 were retired at $324,000.
Compute the net cash flow from financing activities (parentheses indicate an outflow):

A) $ 475,500
B) $(214,500)
C) $ 151,500
D) $ 189,000

Question 55

Consider the following events:
$\bullet$ 25,000 shares of preferred stock, cumulative, 5%, $40 par was issued for $60 a share.
$\bullet$ The annual cash dividend was declared and paid to the above preferred stock.
$\bullet$ The company purchased 12,000 shares of common stock at $68 per share to be held as Treasury stock.
$\bullet$ Interest of $32,000 was paid to bondholders.
$\bullet$ Bonds Payable with a par value of $400,000 were retired at $432,000.
Compute the net cash flow from financing activities (parentheses indicate an outflow):

A) $ 234,000
B) $(286,000)
C) $ 202,000
D) $ 170,000

Question 56

Consider the following:
$\bullet$ Net income, $285,000
$\bullet$ Depreciation Expense $33,000
$\bullet$ Increase in accounts receivable, $12,000
$\bullet$ Decrease in merchandise inventory, $60,000
$\bullet$ Decrease in accounts payable, $24,000
$\bullet$ Increase in income taxes payable, $9,000
Using the Indirect Method, the Net Cash provided by Operating Activities was:

A) $270,000
B) $318,000
C) $303,000
D) $351,000

Question 57

Consider the following:
$\bullet$ Net income, $380,000
$\bullet$ Depreciation Expense $44,000
$\bullet$ Increase in accounts receivable, $16,000
$\bullet$ Decrease in merchandise inventory, $80,000
$\bullet$ Decrease in accounts payable, $32,000
$\bullet$ Increase in income taxes payable, $12,000
Using the Indirect Method, the Net Cash provided by Operating Activities was:

A) $336,000
B) $424,000
C) $404,000
D) $468,000

Question 58

A company had net income of $1,395,000 in 2019. Depreciation expense is $156,000. During the year, Accounts Receivable and Inventory increased $90,000 and $240,000, respectively. Prepaid Expenses and Accounts Payable decreased $12,000 and $24,000, respectively. There was also a loss on the sale of equipment of $18,000.
How much cash was provided by operating activities in 2019?

A) $1,176,000
B) $1,227,000
C) $1,656,000
D) $1,728,000

Question 59

A company had net income of $1,860,000 in 2019. Depreciation expense is $208,000. During the year, Accounts Receivable and Inventory increased $120,000 and $320,000, respectively. Prepaid Expenses and Accounts Payable decreased $16,000 and $32,000, respectively. There was also a loss on the sale of equipment of $24,000.
How much cash was provided by operating activities in 2019?

A) $1,568,000
B) $1,636,000
C) $2,208,000
D) $2,476,000

Question 60

Kaila Company's financial statements show a net income of $567,000 in 2019. The following items also appear on Kaila's balance sheet:
Using the indirect method, what is Kaila's net cash flow from operating activities in 2019?

A) $663,000
B) $408,000
C) $696,000
D) $816,000

Question 61

Andrew Company's financial statements show a net income of $756,000 in 2019. The following items also appear on Wang's balance sheet:
Using the indirect method, what is Wang's net cash flow from operating activities in 2019?

A) $ 884,000
B) $ 544,000
C) $ 948,000
D) $1,088,000

Question 62

Francisco Company reported sales revenue of $300,000 and total expenses of $270,000 (including depreciation) for the year ended December 31, 2019. During 2019, accounts receivable decreased by $12,000, merchandise inventory increased by $9,000, accounts payable increased by $6,000, and depreciation expense of $21,000 was recorded.
Assuming no other data are needed, the net cash inflow from operating activities for 2016 was:

A) $54,000
B) $36,000
C) $60,000
D) $21,000

Question 63

Oscar Company reported sales revenue of $400,000 and total expenses of $360,000 (including depreciation) for the year ended December 31, 2019. During 2019, accounts receivable decreased by $16,000, merchandise inventory increased by $12,000, accounts payable increased by $8,000, and depreciation expense of $28,000 was recorded.
Assuming no other data are needed, the net cash inflow from operating activities for 2019 was:

A) $72,000
B) $56,000
C) $80,000
D) $28,000

Question 64

Consider the following:
Calculate the net cash provided (or used) by operating activities using the indirect method:

A) $ 77,700
B) $ 71,700
C) $107,700
D) $ 38,100

Question 65

Consider the following:
Calculate the net cash provided (or used) by operating activities using the indirect method:

A) $103,600
B) $ 75,600
C) $163,600
D) $ 50,800

Question 66

Consider the following:
The cost of goods sold was $1,470,000.
What was the amount of cash paid for merchandise?

A) $1,470,000
B) $1,479,000
C) $1,521,000
D) $1,461,000

Question 67

Consider the following:
The cost of goods sold was $1,960,000.
What was the amount of cash paid for merchandise?

A) $1,960,000
B) $1,972,000
C) $1,932,000
D) $1,948,000

Question 68

Crater Company reports a $90,000 increase in inventory and a $30,000 increase in accounts payable during the year. Cost of Goods Sold for the year was $900,000.
The cash payments made to suppliers were:

A) $ 900,000
B) $1,020,000
C) $ 960,000
D) $ 840,000

Question 69

Salt Company reports a $120,000 increase in inventory and a $40,000 increase in accounts payable during the year. Cost of Goods Sold for the year was $1,200,000.
The cash payments made to suppliers were:

A) $1,200,000
B) $1,040,000
C) $1,280,000
D) $1,120,000

Question 70

Kane, Inc. had cash sales of $750,000 and credit sales of $1,500,000. The accounts receivable balance increased $30,000 during the year.
How much cash did Will receive from its customers during the year?

A) $2,220,000
B) $2,280,000
C) $1,620,000
D) $1,680,000

Question 71

Buffet, Inc. had cash sales of $1,000,000 and credit sales of $2,000,000. The accounts receivable balance increased $40,000 during the year.
How much cash did Buffet receive from its customers during the year?

A) $2,960,000
B) $3,040,000
C) $2,160,000
D) $2,040,000

Question 72

The beginning balance of Prepaid Interest was $5,400 and the ending balance was $7,800. The Interest Expense account for the year was $25,800.
How much cash was paid for interest?

A) $23,400
B) $28,200
C) $24,300
D) $25,800

Question 73

The beginning balance of Prepaid Interest was $7,200 and the ending balance was $10,400. The Interest Expense account for the year was $34,400.
How much cash was paid for interest?

A) $33,200
B) $37,600
C) $31,400
D) $34,400

Question 74

The beginning balance of Unearned Rent was $24,300 and the ending balance was $33,600. The Rent Earned for the year was $176,100.
How much cash was received for rent?

A) $234,000
B) $118,200
C) $166,800
D) $185,400

Question 75

The beginning balance of Unearned Rent was $32,400 and the ending balance was $44,800. The Rent Earned for the year was $234,800.
How much cash was received for rent?

A) $312,000
B) $157,600
C) $222,400
D) $247,200

Question 76

Belpre Corporation shows income tax expense of $180,000 in 2019. There has been a $15,000 decrease in federal income taxes payable and a $21,000 increase in state income taxes payable during the year.
What was Belpre's cash payment for income taxes?

A) $ 18,000
B) $174,000
C) $165,000
D) $186,000

Question 77

Martin Corporation shows income tax expense of $240,000 in 2019. There has been a $20,000 decrease in federal income taxes payable and a $28,000 increase in state income taxes payable during the year.
What was Martin's cash payment for income taxes?

A) $ 24,000
B) $232,000
C) $220,000
D) $248,000

Question 78

The financial statements of Dunwoody Townhomes show the following:
Cash collected from tenants during 2020 is:

A) $2,277,000
B) $2,289,000
C) $2,265,000
D) $2,253,000

Question 79

The financial statements of Oak Brook Townhomes show the following:
Cash collected from tenants during 2020 is:

A) $3,036,000
B) $3,052,000
C) $3,020,000
D) $3,004,000

Question 80

If wages expense is $270,000 and the beginning and ending Wages Payable balances are $30,000 and $45,000, respectively, cash paid to employees for wages is:

A) $225,000
B) $285,000
C) $255,000
D) Not determinable from the information given