1) The best measure of a company's ability to generate sufficient cash to continue as a going concern is net cash provided by
2) A company's cash flow from investing activities includes
3) A company's cash flow from operating activities includes
4) A company's cash flow from financing activities includes:
5) If accounts receivable have increased during the period,
6) If accounts payable have increased during a period,
7) The declaration and payment of a stock dividend would be reported in which section of the statement of cash flows
8) Each of the following is added to net income in computing net cash provided by operation activities except
9) Flynn Company reported a net loss of $10,000 for the year ended December 31, 2005. During the year, accounts receivable decreased $5,000, merchandise inventory increased $8,000, accounts payable increased by $10,000, and depreciation expense of $5,000 was recorded. During 2005, operating activities
10) Advising Company uses the indirect method. During 2005, the company sold equipment for $3,000. the equipment had a book value of $2,700. On a statement of cash flows,
11) During 2005, Kerry Company reported net income of $145,000, including a gain on the sale of equipment of $5,000. the equipment had a cost of $23,000, a book value of $12,000 and was sold for proceeds of $17,000. The company also purchased land for $25,000 during 2005. No other long-term asset account balances changed during the year. Cash flows from investing activities for 2005 total:
12) In a vertical analysis of the income statement, each line item is expressed as a percentage of
13) IN a vertical analysis of the balance sheet, each line item is expressed as a percentage of
use the following to answer questions 14-19
Balance sheet
Assets
2005 2004
Cash 106,000 52,000
AR 85,000 53,000
Inventories 120,000 132,000
Prepaid expenses 19,000 25,000
Investments 90,000 75,000
Plant assets 310,000 250,000
Acc depreciation (65,000) (60,000)
Total $665,000 $527,000
Liabilities and Stockholder's Equity
Accounts Payable 93,000 75,000
Accrued expenses payable 29,000 24,000
Interest payable 9,000 5,000
Income tax payable 15,000 12,000
Bonds payable 130,000 160,000
Common stock 245,000 170,000
Retained earnings 144,000 81,000
Total $665,000 $527,000
Income statement for the year ended 12/31/2005
Sales 490,000
Less:
Cost of goods sold 290,000
Operating expense (include depreciation exp) 77,000
Income taxes 15,000
Interest expense 18,000
Loss on sale of plant assets 3,000
net income 87,000
Additional info:
Accounts payable pertain to the purchase of inventory
Plant assets were sold for $65,000. The cost of the plant assets was $80,000
14) cash received rom customers is
15) Cash paid to suppliers is
16)Cash paid for operating expenses is
17) Cash paid for interest expense is
18) Cash paid for income taxes is
19) Cash provided from/used in operating activities is
Use the infomation below to answer questions 20 - 26
Balance Sheet
Assets
2005 2004
Cash 39,000 31,000
2005 2004
Cash 39,000 31,000
Accounts receivable, net 80,000 60,000
Prepaid insurance 22,000 17,000
Land 18,000 40,000
Equipment 70,000 60,000
Accumulated Depreciation (30,000) (23,000)
Total $199,000 $185,000
Liabilities and Stockholder's Equity
Accounts Payable 11,000 6,000
Accounts Payable 11,000 6,000
Bond payable 27,000 19,000
Common stock 140,000 115,000
Retained earnings 21,000 45,000
Total $199,000 $185,000
Additional Information:
net loss for 2005 is $20,000
Land was sold for cash at a loss of $10,000. This was the only land transaction during the year.
Equipment was sold for $5,000 cash. The equipment cost $15,000 and had accumulated depreciation of $11,000.
Equipment was acquired for common stock. The fair market value of the stock at the time of the exchange was $25,000.
For the year 2005:
20) Depreciation expense is
21) The sale of equipment resulted in a
22) refer to the previous question. What is the amount of the gain or loss?
23) The amount of dividends paid is
24) Cash provided from/used in operating activities
25) Cash provided from/used in investing activities
26) Cash provided from/used in financing activities
Use the information below to answer questions 27-40
Balance Sheet
Assets
2007 2006
Cash 25,000 40,000
Short-term investments 15,000 60,000
Accounts receiveable 50,000 30,000
Inventory 50,000 70,000
PPE, net 160,000 200,000
Total $300,000 $400,000
Liabilities and Stockholder's Equity
Accounts Payable 20,000 30,000
Short-term notes payable 40,000 90,000
Bond payable 80,000 160,000
Common stock 60,000 45,000
Retained earnings 100,000 75,000
Total $300,000 $400,000
Income statement
for the year ended 12/31/2007
net sales 360,000
Cost of good sold 184,000
gross profit 176,000
Expenses
Interest expense 12,000
selling expense 30,000
administrative exp 59,000
Total exp 101,000
Income before income taxes 75,000
income tax expense 30,000
net income 45,000
Additional information:
Cash dividends of 20,000 were declared and paid in 2007.
the par value of the common stock is .50
market value of common stock on 12/31/2007 was $12 per share.
For the year 2007:
28) current ratio is
29) acid-test is
30) investory turnover (#) is
31) accounts receivable turnover (#) is
33) net profit margin is
34) gross profit margin is
35) earnings per share is
36) price earnings ratio is
37) debt ratio is Answer 1%
38) times interest earned ratio is
39 total asset turnover is
40) return on assets is
