QUESTION 1
A Statement of Cash Flows is generated to show:
a. |
How profits were generated during the period. |
|
b. |
The revenues the company has earned during the period. |
|
c. |
The inflow and outflow of cash during the period. |
|
d. |
The expenses the company incurred during the period. |
1 points
QUESTION 2
Smithson Corp. had the following selected balance sheet changes for the past year:
Assets Increase (Decrease)
Cash $47,000
Accounts Receivable $10,000
Inventory $15,000
Prepaid Expenses ($7,000)
Accumulated Depreciation $11,000
Liabilities Increase (Decrease)
Accounts Payable $20,000
Wages Payable ($12,000)
Taxes Payable $9,000
The company's net income during the year was $35,000. What is the net cash provided by operating activities during the year on the statement of cash flows using the indirect method?
a. |
$25,000 |
|
b. |
$45,000 |
|
c. |
$92,000 |
|
d. |
$10,000 |
4 points
QUESTION 3
The beginning and ending balances of long-term debt are $64,000, and $35,200, respectively, and cash payments for long-term debt during the year were $34,100. How much new long-term debt was issued during the year? |
a. |
New long-term debt issued during the year was $62,000 |
|
b. |
New long-term debt issued during the year was $28,800 |
|
c. |
New long-term debt issued during the year was $5,300 |
|
d. |
New long-term debt issued during the year was $1,100 |
2 points
QUESTION 4
A company sold equipment with a book value of $10,000 at a gain of $2,500. How much can be reported in the investing activities section of the statement of cash flows as cash received from sale of equipment?
a. |
The cash received from sale of equipment is $2,500 |
|
b. |
The cash received from sale of equipment is $10,000 |
|
c. |
The cash received from sale of equipment is $7,500 |
|
d. |
The cash received from sale of equipment is $12,500 |
1 points
QUESTION 5
Page sells books. Based on the information below calculate cost of goods available for sale:
Purchases $105,000
Operating expenses 53,000
Beginning merchandise inventory 14,000
Ending merchandise inventory 11,000
Sales revenue 170,000
a. |
$108,000 |
|
b. |
$116,000 |
|
c. |
$105,000 |
|
d. |
$119,000 |
2 points
QUESTION 6
Using the following information calculate the cost of goods
sold:
Utilities for the store 9,500
Sales commissions 10,000
Sales revenue 164,000
Purchases of merchandise 85,000
January 1 inventory 27,000
Rent of store 13,500
December 31 inventory 23,000
a. |
$112,000 |
|
b. |
$85,000 |
|
c. |
$89,000 |
|
d. |
$108,000 |
3 points
QUESTION 7
Based on the information below what is the cost of direct materials used:
Beginning of year End of year
Raw materials inventory 200 180
Work in Process inventory 320 410
Finished goods inventory 250 200
Sales revenue $4,000
Purchases of direct materials $400
Direct labor $450
Manufacturing overhead $620
Operating expenses $650
a. |
$600 |
|
b. |
$400 |
|
c. |
$380 |
|
d. |
$420 |
3 points
QUESTION 8
Based on the information below what is the cost of good manufactured and completed:
Beginning of year End of year
Raw materials inventory 200 180
Work in Process inventory 320 410
Finished goods inventory 250 200
Sales revenue $4,000
Purchases of direct materials $400
Direct labor $450
Manufacturing overhead $620
Operating expenses $650
a. |
$1,580 |
|
b. |
$1,490 |
|
c. |
$1,400 |
|
d. |
$1,380 |
4 points
QUESTION 9
|
a. |
Production is less than last year. |
|
b. |
Actual overhead is less than expected. |
|
c. |
Actual overhead is less than allocated overhead. |
|
d. |
Estimated overhead is less than actual overhead. |
1 points
QUESTION 10
Before the year began, ABC manufacturing estimated that
manufacturing overhead for the year would be $200,000 and that
25,000 direct labor hours would be worked.
Actual results for the year included the following:
Actual manufacturing costs $182,000
Actual direct labor hours 20,000
If the company allocated manufacturing overhead based on direct labor hours, the manufacturing overhead for the year would have been _________
a. |
$18,000 Underallocated |
|
b. |
$22,000 Underallocated |
|
c. |
$18,000 Overallocated |
|
d. |
$22,000 Overallocated |
1 |
c. The inflow and outflow of cash during the period. |
||
A statement of cash flow is prepared to know the changes in cash and cash equivalent. | |||
It is prepared to know the inflow and outlfoww of cash and cash equivalent in a period. | |||
2 | b.$45,000 | ||
CASH FLOW FROM OPERATING ACTIVITIES | |||
Net Income | 35,000 | ||
Adjustment For: | |||
Depreciation | 11,000 | ||
Amortisation | 0 | ||
Increase in Accounts Receivable | -10,000 | ||
Increase in Inventories | -15,000 | ||
Decrease in Prepaid Expenses | 7,000 | ||
Increase in Accounts Payable | 20,000 | ||
Decrease in Wages Payable | -12,000 | ||
Increase in Taxes Payable | 9,000 | ||
NET CASH FROM OPERATING ACTIVITIES | 45,000 | ||
3 | c. New long-term debt issued during the year was $5,300 | ||
Ending balances of long-term debt | 35,200 | ||
Add: cash payments for long-term debt during the year | 34,100 | ||
Less: Beginning balances of long-term debt | 64,000 | ||
New long-term debt issued during the year | 5,300 | ||
4 | d. The cash received from sale of equipment is $12,500 | ||
Book value of equipment | 10,000 | ||
Add: Gain on sale of equipment | 2,500 | ||
Cash proceeds from sale of equipment | 12,500 |
QUESTION 1 A Statement of Cash Flows is generated to show: a. How profits were generated...
QUESTION 6 Using the following information calculate the cost of goods sold: Utilities for the store 9,500 Sales commissions 10,000 Sales revenue 164,000 Purchases of merchandise 85,000 January 1 inventory 27,000 Rent of store 13,500 December 31 inventory 23,000 a. $112,000 b. $85,000 c. $89,000 d. $108,000 3 points QUESTION 7 Based on the information below what is the cost of direct materials used: Beginning of year End of year Raw materials inventory 200 180 Work in Process inventory...
The following account balances at the beginning of January were selected from the general ledger of Fresh Bagel Manufacturing Company: Work in process inventory $0 Raw materials inventory $ 28 comma 400$28,400 Finished goods inventory $ 40 comma 500$40,500 Additional data: 1. Actual manufacturing overhead for January amounted to $67,400. 2. The total direct labor cost for January was $63,700. 3. The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called for $248,000...
I do not know how to do 7b. Question 1-7a are listed below. Thank you!!! Question: Cole Company uses normal costing in its job-costing system. Partially completed T-accounts and additional information for Cole for 2020 are as follow: T-accounts X Х Direct Materials Control 1-1-2020 38,000 237,000 Finished Goods Control 1-1-2020 14,000 884,960 Work-in-Process Control 1-1-2020 46,000 Dir. Manuf. labor 357,000 Manufacturing Overhead Allocated 134,000 Manufacturing Overhead Control 517,000 926,270 Cost of Goods Sold Print Done More Info X Х...
Barefoot Running Company's work in process inventory on June 1 has a balance of $22,900 representing Job No. 265. During June, $50,700 of direct materials were requisitioned for Job No. 265 and $35,500 of direct labor cost was incurred on Job No. 265. Manufacturing overhead is allocated at 130% of direct labor cost. Actual manufacturing overhead costs incurred in June amounted to $41,300. No new jobs were started during June. Job No. 265 is completed on June 28. Is manufacturing...
Question number 1: Davy Company had a beginning work in process inventory balance of $32,000. During the year, $54,500 of direct materials was placed into production. Direct labor was $63,400, and indirect labor was $19,500. Manufacturing overhead is applied at 125% of direct labor costs. Actual manufacturing overhead was $86,500, and jobs costing $225,000 were completed during the year. What is the ending work in process inventory balance? a. $172,000 b. $ 11,400 c. $ 4,150 d. $ 79,250 Question...
what do you mean? how do you want it? Question 1: Porsche Racing produces custom race cars for professional race teams. To allocate manufacturing overhead to its jobs, the company uses a predetermined manufacturing overhead rate based on the number of direct labour hours. The engineers (direct labour) that work at the Porsche Racing division are paid $65/hour. At the beginning of the year Porsche Racing expected to incur the following: Manufacturing Overhead Cost: $1,400,000 Direct Labour Cost: $4,550,000 Direct...
Statement of Cash Flows (Direct Method) The Geary Company’s income statement and comparative balance sheets as of December 31 of 2019 and 2018 follow: GEARY COMPANY Income Statement For the Year Ended December 31, 2019 Service Fees Earned $320,000 Dividend and Interest Income 16,000 $336,000 Wages and Other Operating Expenses $288,000 Depreciation Expense 55,000 Franchise Amortization Expense 10,000 Loss on Sale of Equipment 7,000 Gain on Sale of Investments (17,000) 343,000 Net Loss $(7,000) GEARY COMPANY Balance Sheets Dec. 31,...
1 Data Table Estimated manufacturing overhead cost for the year Estimated direct labor cost for the year Actual manufacturing overhead cost for the year $ 150,000 93,750 118,000 Actual direct labor cost for the year 68,000 Print Done Requirement 2. Prepare the journal entry to allocate overhead cost for the year. (Record debits first, then credits. Exclude explanations from journal entries.) Date Accounts Debit Credit Dec. 31 verallocated manufacturing overhead. Accounts Payable Accounts Receivable Cash Requirement 3. Cost of Goods...
1. which is not included un investing activities section of cash flow statement? a. sold long term investments for cash b. paid a cash divided c. sold land costing for cash d. purchase of equipment for cash 2. which is true regarding product and period cost? a. factory maintenance is a product cost b. sales commission is a product cost c. direct material is a period cost d. factory wages are a period cost 3. which is not a manufacturing...
Preparing a Statement of Cash Flows (Direct Method) Rainbow Company's income statement and comparative balance sheets follow. RAINBOW COMPANY Income Statement For Year Ended December 31, 2018 Sales $750,000 Dividend Income 15,000 Total Revenue 765,000 Cost of Goods Sold $440,000 Wages and Other Operating Expenses 130,000 Depreciation Expense 39,000 Patent Amortization Expense 7,000 Interest Expense 13,000 Income Tax Expense 44,000 Loss on Sale of Equipment 5,000 Gain on Sale of Investments (3,000) 675,000 Net Income $90,000 RAINBOW COMPANY Balance Sheets...