Quiz 11

1. Assuming Net Income for the year is $250,000, what is the net cash flows from operating activities given the following information:

$347,850
$248,150
$213,650
$240,650

2.  Bad Brad’s BBQ had cash flows for the year as follows ($ in millions):

Bad Brad’s would report net cash inflows (outflows) from investing activities in the amount of:

$(3,500).

$(1,490).

$110

$(3,390).

3.    In 2021, Hope Company incurred sales on account of $167,000. The company also has the following information:

What is the amount of cash received from customers for Hope Company in 2021?

$181,400
$167,000
$147,500
$201,500

4.   Assume net income was $180,000, depreciation expense was $6,500, accounts receivable decreased by $11,000, and accounts payable decreased by $2,700. The amount of net cash flows from operating activities is:

$180,000.
$194,800.
$186,500.
$173,500.

5.  Rachel’s Recordings reported net income of $230,000. Beginning balances in Accounts Receivable and Accounts Payable were $15,000 and $21,000 respectively. Ending balances in these accounts were $11,500 and $28,000, respectively. Assuming that all relevant information has been presented, Rachel’s net cash flows from operating activities would be:

$240,500.
$219,500.
$233,500.
$230,000.

6.  Bad Brad’s BBQ had cash flows for the year as follows ($ in millions):

Bad Brad’s would report net cash inflows (outflows) from financing activities in the amount of:

$1,410.

$(1,410).

$910.

$1,260.

7. A company purchases its inventory from suppliers on account. During the year, its inventory account increased by $20 million and its accounts payable to suppliers decreased by $4 million. If cost of goods sold was $480 million, its cash outflows to inventory suppliers totaled:

$456 million.
$464 million.
$504 million.
$496 million.

8. The following information pertains to Alpha Computing at the end of 2021:

Alpha Computing’s Retained Earnings account had a zero balance at the beginning of 2021. What amount of dividends did the company declare in 2021?
 

Multiple Choice
$51,000
$52,000
$53,000
$50,000

9.  Laser World’s income statement reported total revenues of $870,000 and total expenses (including $44,000 depreciation) of $755,000. The balance sheet reported the following: Accounts Receivable—beginning balance, $53,000 and ending balance, $54,500; Accounts Payable—beginning balance, $25,500 and ending balance, $31,500. Therefore, based only on this information, the net cash flows from operating activities were:

$163,500.

$154,650.

$119,500.

$66,800.

10.  Lense Laboratories’ net income was $300,000. Given the account information below, what is the net cash flows from operating activities for Lense Laboratories?

$504,700

$369,300

$383,300

$314,700