1. A company had net cash flows from operations of $133,000, cash flows from financing of $356,000, total cash flows of $539,000, and average total assets of $3,280,000. The cash flow on total assets ratio equals:
Multiple Choice
16.4%.
4.1%.
4.3%.
16.5%.
24.7%
2. In preparing a company's statement of cash flows using the indirect method, the following information is available:
Net income | $ | 54,000 | |
Accounts payable increased by | 18,200 | ||
Accounts receivable decreased by | 25,200 | ||
Inventories increased by | 5,400 | ||
Depreciation expense | 30,600 | ||
Net cash provided by operating activities was:
Multiple Choice
$122,600.
$83,000.
$133,400.
$61,400.
$72,200.
3. Mayweather reports net income of $350,000 for the year ended December 31. It also reports $117,100 depreciation expense and a $12,700 loss on the sale of equipment. Its comparative balance sheet reveals a $51,000 increase in accounts receivable, a $12,900 decrease in prepaid expenses, a $19,700 increase in accounts payable, a $16,100 decrease in wages payable, a $94,800 increase in equipment, and a $127,000 decrease in notes payable. Calculate the net increase in cash for the year.
Multiple Choice
$350,500.
$223,500.
$445,300.
$318,300.
$236,200.
1 | |
Net cash flows from operations | 133000 |
Divide by Average total assets | 3280000 |
CAsh flow on total assets ratio | 4.1% |
Option B 4.1% is correct | |
2 | |
Net income | 54000 |
Depreciation expense | 30600 |
Accounts payable increase | 18200 |
Accounts receivable decrease | 25200 |
Inventories increase | -5400 |
Net cash provided by operating activities | 122600 |
Option A $122,600 is correct | |
3 | |
Net income | 350000 |
Depreciation expense | 117100 |
Loss on the sale of equipment | 12700 |
Increase in accounts receivable | -51000 |
Decrease in prepaid expenses | 12900 |
Increase in accounts payable | 19700 |
Decrease in wages payable | -16100 |
Increase in equipment | -94800 |
Decrease in notes payable | -127000 |
Net increase in cash for the year | 223500 |
Option B $223,500 is correct |
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