Question

4/The accountant for Mandarin Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

  

Retained earnings balance at the beginning of the year	$	949,000
Net income for the year		295,000
Cash dividends declared for the year		55,000
Retained earnings balance at the end of the year		1,397,000
Cash dividends payable at the beginning of the year		12,600
Cash dividends payable at the end of the year		14,900

What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows?

Multiple Choice

$55,000.

$57,300.

$82,500.

$2,300.

$52,700.

5/ Use the following information to calculate cash paid for income taxes:

Income Tax Expense	$	46,000
Income Tax Payable, January 1		10,000
Income Tax Payable, December 31		11,400

Multiple Choice

$24,600.

$56,000.

$57,400.

$44,600.

$46,000.

6/ In preparing a company's statement of cash flows for the most recent year, the following information is available:

Loss on the sale of equipment	$	14,400
Purchase of equipment		149,000
Proceeds from the sale of equipment		130,000
Repayment of outstanding bonds		89,000
Purchase of treasury stock		64,000
Issuance of common stock		98,000
Purchase of land		119,000
Increase in accounts receivable during the year		45,000
Decrease in accounts payable during the year		77,000
Payment of cash dividends		37,000

Net cash flows from investing activities for the year were:   

Multiple Choice

$260,000 of net cash used.

$123,600 of net cash used.

$138,000 of net cash provided.

$227,000 of net cash provided.

$138,000 of net cash used.

Answer 1

Answer S57,200 Note Cash pdividend paid : Cash Dividends payable at the beginning of the year Add: Cash Dividends declared for the year S 12,600 S 55,000 S 67,600 S 14,900 S 52,700 Less: Cash Dividends payable at the end of the year Answer: S44,600 Note Cash paid to Income laxes Income Tax Payable, January 1 Add: Income Tax Expenses S 10,000 S 46,000 S 56,000 S 11,400 S 44,600 Less: Income Tax Payable, December 31 Answer: S138,000 of net cash used Note Net Cash Flows from Investing activities Purchase of Equipment Proceeds from the sale of equipment Purchase of Land Net Cash used from Investing activities S (149,000) S 130,000 S(119,000) S(138,000)