Question

1.Concord Corporation reported net income of $476000 for the year ended 12/31/21. Included in the computation of net income were: depreciation expense, $60800; amortization of a patent, $32800; income from an investment in common stock of Ivanhoe Company, accounted for under the equity method, $48400; and amortization of a bond discount, $12600. Concord also paid an $79000 dividend during the year. The net cash provided by operating activities would be reported at

a

$343000.

b

$533800.

c

$454800.

d

$422000

2. Net cash flow from operating activities for 2021 for Coronado Industries was $493000. The following items are reported on the financial statements for 2021:

Depreciation and amortization		$ 29900
Cash dividends paid on common stock		18500
Increase in accounts receivable		35100

Based only on the information above, Coronado’s net income for 2021 was:

a

$498200.

b

$428000.

c

$439400.

d

$487800.

3. The balance in retained earnings at December 31, 2020 was $1445000 and at December 31, 2021 was $1170000. Net income for 2021 was $1065000. A stock dividend was declared and distributed which increased common stock $501000 and paid-in capital $57000. A cash dividend was declared and paid.

The amount of the cash dividend was

a

$1340000.

b

$839000.

c

$782000.

d

$395000.

Answer 1

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

D E G H A B C Answer 2 Part 1) 3 The correct answer B) $ 533800 5 6 7 3 9 Cash flow from operating activities = net income + depreciation expense + amortization - income from investment under equity method+amortization of bond = 476000+60800+32800-48400+12600 = $ 533800 The correct answer is B) $ 533800 11 Part 2) 12 The correct answer is A) $498200 14 Net income = cashflow from operating activities - depreciation + increase in account receivable 15 = 493000-29900+35100 16 =$ 498200 17 The correct answer is A) $498200 19 Part 3) 20 The correct answer is C) $782000 22 Cahs dividend = Opening retained + net income - stock dividend - closing retained earning balance 23 = 1445000 +1065000 - (501000+57000)-1170000 24 = $ 782000 25 The correct answer is C) $782000