1. Ahn Nguyen, a Vietnamese Joint Stock Company has net income of 52,000 Vietnamese Dong, () and the following items:
Depreciation Expense 16,000
Accounts Receivable Increase 12,000
Inventory Decrease 6,000
Accounts Payable Increase 8,000
Accrued Liabilities Decrease 15,000
What is net cash flow from operating activities?
A) $67,000
B) $62,000
C) $55,000
D) $51,000
E) $49,000
2. The Paulo Coffee Company reported revenue of 250,000 Brazilian Reals with cost of goods sold of 170,000 Brazilian Reals for the year. In addition, the company's inventory balance decreased by 45,000 Brazilian Reals during the year and the accounts payable balance increased by 35,000 Brazilian Reals during the year. Determine the cash that Paulo Coffee Company paid for merchandise purchases during the year:
A) 250,000
B) 90,000
C) 180,000
D) 160,000
E) 170,000
3. Zhao She Hanung, Inc. reported the following information for the year ended December 31, 2016. The following figures are in billions of Chinese Yuan (Yuan).
- Accounts payable increased during the year by 59;
- Inventory increased during the year by 29;
- Zhao She Hanung, Inc. has no accounts receivable, as all sales are cash sales;
- Net income for the year was 130;
- On December 30, 2016, Zhao She Hanung, Inc. sold a piece of equipment for 220 that originally cost 440. The accumulated depreciation on this piece of equipment at the time of its sale was 240.
- The total Accumulated depreciation on Zhao She Hanung, Inc.'s equipment decreased from Yuan 760 at December 31, 2015 to Yuan 600 at December 31, 2016.
On the statement of cash flows, cash flow from operating activities should be reported as:
A) Yuan 220 billion
B) Yuan 260 billion
C) Yuan 320 billion
D) Yuan 200 billion
4. Robson's Indian Jewelry Company recorded the following cash transactions during 2016 (all figures in millions of Indian Rupees (Rs.)):
- Cash from customers Rs. 750
- Sale of Investments Rs. 80
- Payment of salaries to employees Rs. 42
- Issue of common stock Rs. 100
- Proceeds from issue of notes payable Rs. 300
- Sale of patents Rs. 15
- Income taxes paid Rs. 8
- Payments to suppliers Rs. 150
What is cash inflow from operating, investing, and financing activities, respectively, for 2016?
A) Operating: 450 Investing: 120 Financing: 470
B) Operating: 550 Investing: 95 Financing: 400
C) Operating: 600 Investing: 80 Financing: 400
D) Operating: 550 Investing: 120 Financing: 100
5. Kyle's Toy Company purchased new equipment at a cost of $18,500 on December 31, 2016. Of this amount, $8,000 was on account (due in 30 days) and the remainder was paid in cash. Since the equipment was purchased on the last day of the year, there is no depreciation expense for 2016. How is this transaction reflected in the Cash Flow Statement, prepared under the indirect approach?
A) Increases Operating Cash-flow by $8,000
B) Reduces Investing Cash-flow by $18,500
C) Reduces Investing Cash-flow by $10,500
D) Increases Financing Cash-flow by $8,000
E) A,C and D
6. Given the following information, determine the 2016 total net cash flow from investing activity for Hank's construction company:
(Hint. the question asks only about the total net cash flow, not the inflows and outflows separately.)
|
|
12/31/15
|
12/31/16
|
|
PPE (Gross)
|
1,000,000
|
900,000
|
|
Accumulated Depreciation
|
(700 000)
|
1250 000)
|
|
PPE (Net)
|
800,000
|
650,000
|
Fiscal year Ending Fiscal year Ending
|
|
12/31/15
|
12/31/16
|
|
Net Income
|
10,000,000
|
11,000,000
|
|
Gain on sale of PPE
|
50,000
|
25.000
|
|
Depreciation Expense
|
100,000
|
120.000
|
a) 95,000
b) 30,000
c) 25,000
d) 55,000
7. The section showing cash flow from operations, using the indirect method, for Flapjack Syrup Co reported an increase in inventories during the year of 5245,000. Accounts payable related to the purchase of inventories increased by $25,000. The direct method would show cash payments for inventory, purchased and manufactured, totaling $3,200,000.
What is Flapjack Syrup Co's cost of goods sold?
8. The Evanston Gazette has a drive to get customers to subscribe and prepay for their subscriptions prior to the year end. On December 31, 2016, they receive $40,000 from customers for newspaper subscriptions to be delivered in 2017. The Evanston Gazette estimates it will cost approximately $30,000 to fulfill these subscriptions.
How does this impact Evanston Gazette's 2016 statement of cash flows?
Cash from operations will be $40,000 higher.
Cash from operations will be $10,000 higher.
Cash from financing will be $40,000 lower and cash from operations will be $40,000 higher.
Cash from investing will be S40,000 higher.
No Change.