1. The net income reported on the income statement for thecurrent year was $288,417. Depreciation recorded on fixed assetsand amortization of patents for the year were $41,876, and $11,524,respectively. Balances of current asset and current liabilityaccounts at the end and at the beginning of the year are asfollows:
End Beginning Cash $46,710 $55,173 Accounts receivable 100,038 129,780 Inventories 87,496 101,142 Prepaid expenses 7,305 4,393 Accounts payable (merchandise creditors) 62,403 55,238
What is the amount of cash flows from operating activitiesreported on the statement of cash flows prepared by the indirectmethod?
a. $315,644
b. $389,458
c. $276,574
d. $385,205
2.
Determine the relationship of $219,652 to $115,020, expressed asa ratio.
Select the correct answer.
a. 1.9 to 1
b. 1.1 to 1
c. 0.5 to 1
d. 0.7 to 1
3.
Based on the following data for Privett Company, what is thequick ratio, rounded to one decimal point?
Privett Company Accounts payable $33,191 Accounts receivable 68,636 Accrued liabilities 6,715 Cash 23,006 Intangible assets 35,944 Inventory 88,660 Long-term investments 99,015 Long-term liabilities 71,468 Marketable securities 38,057 Notes payable (short-term) 23,392 Property, plant, and equipment 691,785 Prepaid expenses 1,629
a. 16.5
b. 1
c. 2
d. 3.5
4.
The balance sheets at the end of each of the first two years ofoperations indicate the following:
Kellman Company Year 2 Year 1 Total current assets $618,015 $564,556 Total investments 60,948 41,643 Total property, plant, and equipment 882,682 618,461 Total current liabilities 101,282 83,040 Total long-term liabilities 302,446 237,252 Preferred 9% stock, $100 par 84,252 84,252 Common stock, $10 par 521,610 521,610 Paid-in capital in excess of par-common stock 65,163 65,163 Retained earnings 486,892 233,343
Using the balance sheets for Kellman Company, if net income is$113,275 and interest expense is $33,061 for Year 2, what is thereturn on total assets for the year (round percent to two decimalpoints)?
a. 9.25%
b. 10.50%
c. 7.25%
d. 10.99%
1. The net income reported on the income statement for thecurrent year was $288,417. Depreciation recorded on fixed assetsand amortization of patents for the year were $41,876, and $11,524,respectively. Balances of current asset and current liabilityaccounts at the end and at the beginning of the year are asfollows:
| End | Beginning | |
| Cash | $46,710 | $55,173 |
| Accounts receivable | 100,038 | 129,780 |
| Inventories | 87,496 | 101,142 |
| Prepaid expenses | 7,305 | 4,393 |
| Accounts payable (merchandise creditors) | 62,403 | 55,238 |
What is the amount of cash flows from operating activitiesreported on the statement of cash flows prepared by the indirectmethod?
a. $315,644
b. $389,458
c. $276,574
d. $385,205
2.
Determine the relationship of $219,652 to $115,020, expressed asa ratio.
Select the correct answer.
a. 1.9 to 1
b. 1.1 to 1
c. 0.5 to 1
d. 0.7 to 1
3.
Based on the following data for Privett Company, what is thequick ratio, rounded to one decimal point?
| Privett Company | |
| Accounts payable | $33,191 |
| Accounts receivable | 68,636 |
| Accrued liabilities | 6,715 |
| Cash | 23,006 |
| Intangible assets | 35,944 |
| Inventory | 88,660 |
| Long-term investments | 99,015 |
| Long-term liabilities | 71,468 |
| Marketable securities | 38,057 |
| Notes payable (short-term) | 23,392 |
| Property, plant, and equipment | 691,785 |
| Prepaid expenses | 1,629 |
a. 16.5
b. 1
c. 2
d. 3.5
4.
The balance sheets at the end of each of the first two years ofoperations indicate the following:
| Kellman Company | ||
| Year 2 | Year 1 | |
| Total current assets | $618,015 | $564,556 |
| Total investments | 60,948 | 41,643 |
| Total property, plant, and equipment | 882,682 | 618,461 |
| Total current liabilities | 101,282 | 83,040 |
| Total long-term liabilities | 302,446 | 237,252 |
| Preferred 9% stock, $100 par | 84,252 | 84,252 |
| Common stock, $10 par | 521,610 | 521,610 |
| Paid-in capital in excess of par-common stock | 65,163 | 65,163 |
| Retained earnings | 486,892 | 233,343 |
Using the balance sheets for Kellman Company, if net income is$113,275 and interest expense is $33,061 for Year 2, what is thereturn on total assets for the year (round percent to two decimalpoints)?
a. 9.25%
b. 10.50%
c. 7.25%
d. 10.99%
Related questions
The net income reported on the income statement for the currentyear was $364,000. Depreciation recorded on store equipment for theyear amounted to $14,500. Balances of the current asset and currentliability accounts at the beginning and end of the year are asfollows:
End of Year | Beginning of Year | |
|---|---|---|
| Cash | $43,210 | $38,400 |
| Accounts receivable (net) | 31,360 | 29,020 |
| Merchandise inventory | 39,590 | 45,160 |
| Prepaid expenses | 4,740 | 3,670 |
| Accounts payable (merchandise creditors) | 41,480 | 35,590 |
| Wages payable | 21,910 | 22,970 |
Required:
| A. | Prepare the Cash Flows from Operating Activities section of thestatement of cash flows, using the indirect method. Refer to theAmount Descriptions list provided for the exact wording of theanswer choices for text entries. Use the minus sign to indicatecash outflows, cash payments, decreases in cash and for anyadjustments, if required. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| B
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