1. Accounts Receivable has a beginning balance of $425,000 and an ending balance of $437,000. Cash collected from customers during the period was $1,263,000. Sales for the period were:
(a) $1,251,000.
(b) $1,263,000.
(c) $1,275,000.
(d) $1,287,000.
2. Ruse Inc. reported net income for 2008 of $174,000. Ruse also reported the following related to its current assets and liabilities:
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Dec 31, 2008
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Dec 31, 2007
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Accounts receivable
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$ 84,000
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$ 86,000
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|
Inventory
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117,000
|
101,000
|
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Accounts payable
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150,000
|
140,000
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What amount should be reported by Ruse Inc. as cash provided by operating activities in the statement of cash flows?
(a) $150,000
(b) $170,000
(c) $178,000
(d) $198,000
3. In the statement of cash flows (using the indirect method), an increase in interest payable should be presented as a(n):
(a) subtraction from net income in the Operating Activities section.
(b) addition to net income in the Operating Activities section.
(c) subtraction in the Financing Activities section.
(d) addition in the Financing Activities section.