Question

Question 8

1. Which of the following statements is false?

   		Financing activities in a cash flow statement include obtaining resources from owners and creditors and repaying amounts borrowed.
   		The statement of cash flows reports the cash receipts and cash payments of an entity over a period of time.
   		The operating activities in a cash flow statement include transactions which affect the sale and the purchase or production of goods and services.
   		The statement of cash flows is similar to the income statement, as they both determine the net income for a company.
   		Investing activities in a cash flow statement include acquiring and selling long-term assets.

1 points

Question 9

1. All of the following would be included in a company's financing activities except

   		issuing stock.
   		purchase of treasury stock.
   		issuing bonds.
   		receipt of dividends.
   		payment of dividends.

1 points

Question 10

1. Table 5-1
   Kasian Catering
   Balance Sheet
   December 31, 20X9 and 20X8
   
   12/31/X9 12/31/X8
   Current Assets:
   Cash $ 4,600 $ 3,100
   Accounts Receivable 9,600 7,900
   Inventory 17,500 18,600
   Supplies 1,200 2,100
   Prepaid Insurance 1,400 1,000
   Total Current Assets 34,300 32,700
   Long-term Assets:
   Fixed Assets 71,000 58,000
   Accumulated Depreciation (30,400) (26,500)
   Patent 6,000 7,100
   Total Long-term Assets 46,600 38,600
   Total Assets $ 80,900 $ 71,300
   
   Current Liabilities:
   Accounts Payable $ 6,100 $ 4,900
   Wages Payable 2,200 2,600
   Interest Payable 800 1,000
   Taxes Payable 2,300 1,600
   Total Current Liabilities 11,400 10,100
   Long-term Liabilities: Bonds Payable 20,300 24,000
   Total Liabilities 31,700 34,100
   Stockholders' Equity:
   Common Stock 22,700 20,000
   Retained Earnings 26,500 17,200
   Total Stockholders' Equity 49,200 37,200
   Total Liabilities and Stockholders' Equity $ 80,900 $ 71,300
   
   Kasian Catering
   Income Statement
   For the Year Ended December 31, 20X9
   
   Sales $147,600
   Cost of Goods Sold (63,800)
   Gross Profit 83,800
   Less Operating Expenses:
   Wage Expense $ 40,100
   Supply Expense 3,600
   Insurance Expense 3,000
   Depreciation Expense 3,900
   Amortization Expense 1,100
   Rent Expense 5,400 57,100
   Operating Income 26,700
   Interest Expense (2,600)
   Income before Taxes 24,100
   Income Tax Expense (10,800)
   Net Income $ 13,300
   
   Referring to Table 5-1, what was the cash paid for supplies by Kasian Catering in 20X9? (Assume all purchases of supplies were for cash.)

   		$2,400
   		$4,500
   		$3,600
   		$4,800
   		$2,700

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.

Answer Part 8) The statement of cash flows is similar to the income statement, as they both determine the net income for a company. Explanation statement of cash flows is not similar to cashflow statement, as statement of cash flows shows flow of cash and income statement shows net income. Part 9) The correct answer is Receipt of dividend Explanation Receipt of dividend is cash flow from operating activities. Part 10) The correct answer is $ 2700 Cash paid for supplies/ Purchases = ending balance + supplies expense - begging balance = 1200+3600-2100 = $2700