Saturday, October 10, 2020

What amount would the company report for financing cash flows in the statement of cash flows?

Consider the following list of transactions:


Repay borrowing from the bank, $2,000.

Pay employees' salaries of $1,500.

Purchase equipment for cash, $10,000.

Provide services to customers for cash, $4,500.

Issue shares of common stock for cash, $5,000.

Pay utilities, $1,000.

Provide services to customers on account, $2,500.

Sell old delivery truck for cash, $4,000.


What amount would the company report for financing cash flows in the statement of cash flows?


A) $3,000.

B) $6,000.

C) $1,500.

D) $4,500.


Answer: $3,000.,

What amount would the company report for investing cash flows in the statement of cash flows?

Consider the following list of transactions:


Repay borrowing from the bank, $2,000.

Pay employees' salaries of $1,500.

Purchase equipment for cash, $10,000.

Provide services to customers for cash, $4,500.

Issue shares of common stock for cash, $5,000.

Pay utilities, $1,000.

Provide services to customers on account, $2,500.

Sell old delivery truck for cash, $4,000.


What amount would the company report for investing cash flows in the statement of cash flows?


A) $(3,500).

B) $(6,000).

C) $(4,000).

D) $(7,500).


Answer: $(6,000).,

What amount would the company report for operating cash flows in the statement of cash flows?

Consider the following list of transactions:


Repay borrowing from the bank, $2,000.

Pay employees' salaries of $1,500.

Purchase equipment for cash, $10,000.

Provide services to customers for cash, $4,500.

Issue shares of common stock for cash, $5,000.

Pay utilities, $1,000.

Provide services to customers on account, $2,500.

Sell old delivery truck for cash, $4,000.


What amount would the company report for operating cash flows in the statement of cash flows?


A) $5,000.

B) $4,500.

C) $1,000.

D) $2,000.


Answer: $2,000.,

Providing services to customers on account is considered a(n):

Providing services to customers on account is considered a(n):


A) Operating cash flow.

B) Investing cash flow.

C) Financing cash flow.

D) Not a cash flow.


Answer: Not a cash flow.

Cash flows from financing activities include:

Cash flows from financing activities include:


A) Lending.

B) Salaries paid.

C) The sale of land.

D) Dividends paid.


Answer: Dividends paid.

Issuing common stock for cash is considered a(n):

Issuing common stock for cash is considered a(n):


A) Operating cash flow.

B) Investing cash flow.

C) Financing cash flow.

D) Not a cash flow.


Answer: Financing cash flow.

Payment of dividends to stockholders is considered a(n):

Payment of dividends to stockholders is considered a(n):


A) Operating cash flow.

B) Investing cash flow.

C) Financing cash flow.

D) Not a cash flow.


Answer: Financing cash flow.

Assuming a current ratio of 1.2 and an acid-test ratio of 0.80, how will the purchase of inventory with cash affect each ratio?

Assuming a current ratio of 1.2 and an acid-test ratio of 0.80, how will the purchase of inventory with cash affect each ratio? A) Increase ...