Question

Multiple Choice Questions
Use the following information for Multiple-Choice Exercises 11-1 and 11-2.
Cornett Company reported the following information: cash received from the issuance of common stock, $125,400; cash received from the sale of equipment, $26,500; cash paid to purchase an investment, $12,800; cash paid to retire a note payable, $30,000; cash collected from sales to customers, $248,000.
1. Refer to the information for Cornett Company above. What amount should Cornett report on its statement of cash flows as net cash flows provided by investing activities?
a. $13,700
b. $39,300
c. $86,100
d. None of these
2. Refer to the information for Cornett Company above. What amount should Cornett report on its statement of cash flows as net cash flows from financing activities?
a. $82,600
b. $95,400
c. $108,200
d. None of these
3. Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next five years of $122,300. What is Chasse’s free cash flow and cash flow adequacy ratio?
a. $94,300 and 0.77, respectively
b. $94,300 and 0.82, respectively
c. $130,100 and 1.06, respectively
d. $165,900 and 1.36, respectively
4. Smoltz Company reported the following information for the current year: cost of goods sold, $315,100; increase in inventory, $14,700; and increase in accounts payable, $8,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method?
a. $292,200
b. $308,600
c. $321,600
d. $338,000
5. Romo Inc. reported the following information for the current year: operating expenses, $210,000; increase in prepaid expenses, $4,900; and decrease in accrued liabilities, $6,100. What is the amount of cash paid for operating expenses that Romo would report on its statement of cash flows under the direct method?
a. $199,000
b. $208,800
c. $211,200
d. $221,000


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  • CreatedSeptember 22, 2015
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