Lending money and collecting the loans are


9. Lending money and collecting the loans are a. operating activities. b. investing activities c. financing activities. d. Non-cash investing and financing activities. 10. The net income reported on the income statement for the current year was $245,000. Depreciation was $40,000. Account receivable and inventories decreased by $12,000 and $35,000, respectively. Prepaid expenses and accounts payable increased, respectively, by $1,000 and $8,000. How much cash was provided by operating activities? a. $296,000 6: $339,000 c. $323,000 d. $311,000 11. Each of the following is added to net income in computing net cash provided by operating activities except a. amortization expense. b. an increase in accrued expenses payable. C a gain on sale of equipment d. a decrease in inventory 12. Which of the following is not a profitability ratio? a. Payout ratio b. Profit margin c.. Times interest earned a. Return on common stockholders equity

Answer

q9) option b
investing activities
Q10) net income 245000
Adjustments
Depreciation 40,000
decrease in accounts receivable 12,000
decrease in inventories 35,000
increase in prepaid expense -1,000
increase in accounts payable 8,000
net cash from operating activities 339000 ans
option b
Q11) option c
gain on sale of equipment
q12) option a
payout ratio

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