Q1. Northwest Builders, Inc. reported Cost of Goods Sold for the current year of $340,000. During the same period, the Inventory account decreased $15,000 and the Accounts Payable account increased $24,000. The amount of cash paid to suppliers for inventory is:
A. $355,000.
B. $301,000.
C. $325,000.
D. $316,000.
Q2. On a statement of cash flows prepared with the indirect method, investing activities do NOT include:
A. collection of note receivable.
B. sale of investments that are not cash equivalents.
C. lending money to an employee.
D. receipt of interest on investments.
Q3. In 2016, MillCorporation borrowed $60,000, paid dividends of $24,000, issued 5,000 shares of stock for $20 per share, purchased land for $25,000, and received dividends of $6,000. Net income was $150,000, and depreciation for the year totaled $8,000. Accounts receivable increased by $6,000.
How much should be reported as net cash provided by operating activities by the indirect method?
A. $275,000
B. $158,000
C. $140,000
D. $152,000
Q4. Mary Andrews, Inc. had the following transactions:
Cash proceeds on sale of land $440,000
Cash proceeds on sale of equipment 170,000
Purchase of treasury stock with cash 46,000
Purchase of equipment with cash 54,000
Issuance of common stock for cash 70,000
On a statement of cash flows prepared under the indirect method, Net cash provided by investing activities is:
A. $610,000.
B. $580,000.
C. $556,000.
D. $510,000.