Use the following information to calculate cash received from dividends

1) Use the following information to calculate cash received from dividends:

Dividends revenue $ 68,500
Dividends receivable, January 1 5,100
Dividends receivable, December 31 4,100
Multiple Choice
  • $68,500.
  • $69,500.
  • $64,400.
  • $73,600.
  • $67,500. 2) A machine with a cost of $156,000, current year depreciation expense of $23,500 and accumulated depreciation of $98,000 is sold for $50,400 cash. The total amount related to this machine that should be reported in the operating section of the statement of cash flows under the indirect method is: Multiple Choice
  • $23,500.
  • $17,100.
  • $73,900.
  • $31,100.
  • $5,040. 3) The accountant for Crusoe Company is preparing the company’s statement of cash flows for the fiscal year just ended. The following information is available:  
    Retained earnings balance at the beginning of the year $ 129,500
    Cash dividends declared for the year 49,500
    Proceeds from the sale of equipment 84,500
    Gain on the sale of equipment 7,700
    Cash dividends payable at the beginning of the year 21,500
    Cash dividends payable at the end of the year 24,200
    Net income for the year 95,500

    What is the ending balance for retained earnings? Multiple Choice
  • $283,000.
  • $205,500.
  • $181,000.
  • $255,000.
  • $175,500. 4) Use the following information about the current year’s operations of a company to calculate the cash paid for merchandise.
    Cost of goods sold $ 560,000
    Merchandise inventory, January 1 91,000
    Merchandise inventory, December 31 109,000
    Accounts payable, January 1 80,000
    Accounts payable, December 31 66,000
    Multiple Choice
  • $578,000.
  • $574,000.
  • $592,000.
  • $651,000.
  • $528,000.
  • 5) Bagwell’s net income for the year ended December 31, Year 2 was $204,000. Information from Bagwell’s comparative balance sheets is given below. Compute the cash received from the sale of its common stock during Year 2.
    At December 31 Year 2 Year 1
    Common Stock, $5 par value $ 519,000 $ 467,100
    Paid-in capital in excess of par 967,000 870,100
    Retained earnings 707,000 599,100
    Multiple Choice
  • $51,900.
  • $107,900.
  • $148,800.
  • $96,900.
  • $204,000. 6) Scranton, Inc. reports net income of $247,000 for the year ended December 31. It also reports $95,100 depreciation expense and a $5,850 gain on the sale of equipment. Its comparative balance sheet reveals a $38,900 decrease in accounts receivable, a $17,450 increase in accounts payable, and a $13,650 decrease in wages payable. Calculate the cash provided (used) in operating activities using the indirect method. Multiple Choice
  • $378,950.
  • $344,050.
  • $283,950.
  • $406,250.
  • $384,800.    7) A company’s income statement showed the following: net income, $147,000 and depreciation expense, $36,900. An examination of the company’s current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $11,700; merchandise inventory increased $22,600; and accounts payable increased $5,700. Calculate the net cash provided or used by operating activities. Multiple Choice
  • $178,700.
  • $189,100.
  • $141,000.
  • $212,500.
  • $143,900.    8) Fernwood Company is preparing the company’s statement of cash flows for the fiscal year just ended. The following information is available:
    Retained earnings balance at the beginning of the year $ 323,000
    Cash dividends declared for the year 72,500
    Proceeds from the sale of equipment 124,600
    Gain on the sale of equipment 7,200
    Cash dividends payable at the beginning of the year 31,900
    Cash dividends payable at the end of the year 39,000
    Net income for the year 159,500

    The amount of cash paid for dividends was: Multiple Choice
  • $88,600.
  • $87,000.
  • $70,900.
  • $65,400.
  • $72,500.    9) Bagwell’s net income for the year ended December 31, Year 2 was $196,000. Information from Bagwell’s comparative balance sheets is given below. Compute the cash paid for dividends during Year 2.
    At December 31 Year 2 Year 1
    Common Stock, $5 par value $ 511,000 $ 459,900
    Paid-in capital in excess of par 959,000 862,900
    Retained earnings 699,000 591,900
    Multiple Choice
  • $107,100.
  • $88,900.
  • $147,200.
  • $96,100.
  • $51,100.
  • 10) In preparing a company’s statement of cash flows for the most recent year using the indirect method, the following information is available:
    Net income for the year was $ 56,000
    Accounts payable increased by 22,000
    Accounts receivable decreased by 33,000
    Inventories decreased by 9,000
    Cash dividends paid were 18,000
    Depreciation expense was 28,000

    Net cash provided by operating activities was: Multiple Choice
  • $148,000.
  • $78,000.
  • $79,000.
  • $130,000.
  • $32,000.

Answer

1.
Dividends receivable, January 1 $         5,100
Add: Dividend revenue $       68,500
Less: Dividends receivable, December 31 $       (4,100)
Cash received from dividends $       69,500
Answer is B. $69,500 2.
Depreciation expense $       23,500
Add: Loss on sale of machine ($156,000-$98,000-$50,400) $         7,600
operating section of the statement of cash flows $       31,100
Answer is D. $31,100 3.
Retained earnings balance at the beginning of the year $    129,500
Less: Cash dividends declared for the year $    (49,500)
Add: Net income for the year $       95,500
ending balance for retained earnings $    175,500
Answer is E. $175,500 4.
Cost of goods sold $    560,000
Add:Accounts payable, January 1 $       80,000
Less: Accounts payable, December 31 $    (66,000)
Less: Merchandise inventory, January 1 $    (91,000)
Add: Merchandise inventory, December 31 $    109,000
cash paid for merchandise $    592,000
Answer is C. $592,000

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