Use the following to answer questions 1-3:
Blue Company had the following transactions during 2008:
1. Issued $45,000 of par value common stock for cash.
2. Repaid a 6 year note payable in the amount of $13,000.
3. Acquired land by issuing common stock of par value $60,000.
4. Declared and paid a cash dividend of $2,000.
5. Sold a long-term investment (cost $3,000) for cash of $7,000.
6. Acquired a long-term investment in stock for cash of $5,000.
1. What is the net cash provided by financing activities?
A) $13,000
B) $25,000
C) $14,000
D) $30,000
2. What is the net cash provided by investing activities?
A) $6,000
B) $16,000
C) ($3,000)
D) $2,000
3. Largor Company reported a net income of $3,000 for the year ended December 31, 2008. During the year, accounts receivable increased $7,000, merchandise inventory decreased $5,000, accounts payable decreased by $10,000, and depreciation expense of $5,000 was recorded. During 2007, operating activities
A) used net cash of $4,000.
B) used net cash of $14,000.
C) provided net cash of $14,000.
D) provided net cash of $9,000.
4. Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $12,000. If the balance of the Allowance for Doubtful Accounts is $2,000 credit before adjustment, what is the amount of bad debts expense for that period?
A) $10,000
B) $8,000
C) $12,000
D) $2,000
5. A company has net credit sales of $900,000 for the year and it estimates that uncollectible accounts will be 2.5% of sales. If Allowance for Doubtful Accounts has a credit balance of $1,000 prior to adjustment, its balance after adjustment will be a credit of
A) $18,000.
B) $19,000.
C) $23,500.
D) $17,000.
6. JV issued 8% stated rate bonds with a face amount of $200 million. The bonds mature on
December 31, 2033 (20 years). The market rate of interest for similar bond issues was 10%
(5% semiannual rate). Interest is paid semiannually (3%) on June 30 and December 31,
beginning on June 30, 2014. What is the issue price of the bonds? Write only the final
answer on the final answer. Do not show work.
Data related to the inventories of XYZ Medical Supply are presented below:
7. In applying the LCM rule, the inventory of surgical equipment would be valued at:
A. $230.
B. $240.
C. $170.
D. $152.
8. In applying the LCM rule, the inventory of surgical supplies would be valued at:
A. $115.
B. $90.
C. $80.
D. $69 .
E. $79