1. Austin Corporation's ending cash book balance was $14,560. The bank statement showed the following reconciling items:
Bank service fee ........ $150
NSF check from customer .... $180
Collection of receivable..... $500
What is Austin's actual cash balance?
a. $14,560
b. $14,730
c. $15,090
d. $13,730
2. The month-end bank statement showed a $42,600 ending balance for Hurry Corporation's cash balance. Use the following items to calculate Hurry's actual ending cash balance:
Outstanding checks ... $4,240
Bank service fee ..... $150
Deposit in transit ..... $780
a. $46,060
b. $37,430
c. $47,620
d. $37,580
3. Which of the following represents an item that would likely be paid from petty cash?
a. A manager's salary
b. Utilities for a warehouse
c. Miscellaneous office supplies
d. Insurance
4. Which of the following would least likely qualify as a cash equivalent?
a. Treasury bills
b. Commercial paper
c. Certificate of deposit
d. U.S. Savings Bond
5. Nickel Corporation's cash and cash equivalents balances for the current and prior year are presented below:
Current year ...$22,500
Prior year ....$19,350
Perform a horizontal analysis on Nickel's cash and cash equivalents.
a. 16.3%
b. 14.0%
c. (14.0)%
d. 13.9%
6. Using the following information taken from Reebals Incorporated's balance sheet, prepare a vertical analysis of Reebals' cash balance.
Cash and cash equivalents, current year ... $1,345
Cash and cash equivalents, prior year .... $1,267
Total assets, current year ......... $38,500
a. 3.5%
b. 3.3%
c. 6.2%
d. 2.2%
7. Free cash flow is not affected by:
a. dividends.
b. purchase of an office building.
c. purchase of a warehouse.
d. purchase of raw materials.
8. Using the following information from Walker Enterprises, calculate free cash flow.
Cash flows from operating activities ..... $75,200
Cash flows from investing activities .... $43,550
Dividends paid ............ $7,500
Capital expenditures .......... $25,320
Cost of goods sold ............ $45,300
a. $10,730
b. $42,380
c. ($2,920)
d. $49,880

  • CreatedJuly 16, 2015
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