1-A company had average total assets of $1,760,000, total cash flows of $1,320,000, cash flows from operations of $205,000, and cash flows from financing of $850,000. The cash flow on total assets ratio equals:
a. 1.33%.
b. 8.58%.
c. 11.65%.
d. 15.5%.
e. 75%.
2.Woodlawn 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 $233,000
Cash dividends declared for the year $50,000
Proceeds from the sale of equipment $85,000
Gain on the sale of equipment $4,500
Cash dividends payable at the beginning of the year $22,000
Cash dividends payable at the end of the year $30,000
Net income for the year $110,000
The ending balance in retained earnings is:
a. $343,000.
b. $213,000.
c. $293,000.
d. $297,500.
e. $301,000.
3- Which of the following is included in the cash flows from financing activities section of the statement of cash flows?
a. Interest revenue.
b. Sale of equipment.
c. Interest expense.
d. Purchase of treasury stock.
e. Purchase of stock in another company.
4-The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is:
a. Operating activities.
b. Financing activities.
c. Investing activities.
d. Schedule of noncash investing or financing activity.
e. None of these. This is not reported on the statement of cash flows.
5-Which of the following items is reported on the statement of cash flows under financing activities?
a. Declaration of a cash dividend.
b. Payment of a cash dividend.
c. Declaration of a stock dividend.
d. Payment of a stock dividend.
e. Stock split.
6- Noncash investing and financing activities may be disclosed in:
a. A note in the financial statements or a schedule attached to the statement of cash flows.
b. The operating activities section of the statement of cash flows.
c. The investing activities section of the statement of cash flows.
d. The financing activities section of the statement of cash flows.
e. The reconciliation of cash balance section.
7 In preparing a company's statement of cash flows for the most recent year on the indirect method, the following information is available:
net income from the year was 52000
accounts payable decrease by 18000
accounts receivables decrease by 25000
inventories incresed by 5000
cash diviends paid were 14000
depreciation expense was 30000
Net cash provided by operating activities was:
a. $120,000.
b. $44,000.
c. $70,000.
d. $84,000.
e. $30,000.
8- The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the:
a. Operating activities.
b. Financing activities.
c. Investing activities.
d. Schedule of noncash financing and investing activities.
e. Reconciliation of cash balance.
9-A cash equivalent is an investment that:
a. Is readily convertible to a known amount of cash.
b. Is sufficiently close to its maturity date so its market value is unaffected by interest rate changes.
c. Generally is within 3 months of its maturity date.
d. Is highly liquid.
e. All of these.
10-Preparation of the statement of cash flows involves:
a. Computing the net increase or decrease in cash.
b. Computing and reporting net cash provided or used by operations.
c. Computing and reporting net cash provided or used by investing activities.
d. Computing and reporting net cash provided or used by financing activities.
11-A company had net cash flows from operations of $120,000, cash flows from financing of $330,000, total cash flows of $500,000, and average total assets of $2,500,000. The cash flow on total assets ratio equals:
a. 4.8%.
b. 5.0%.
c. 20.0%.
d. 20.8%.
e. 24.0%.
12-The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is:
a. Operating activities.
b. Financing activities.
c. Investing activities.
d. Schedule of noncash investing or financing activity.
e. None of these. This is not reported on the statement of cash flows.