ACCT 640 QUIZ 2
2010
2009
Current Assets:
Cash
$ 9,000
$ ?
Accounts Receivable
14,000
18,000
Inventory
23,000
20,000
Total Current Assets
46,000
45,000
Fixed Assets
73,000
66,000
Less: Accum. Depreciation
(28,000)
(26,000)
TOTAL ASSETS
$ 91,000
$ 85,000
Current Liabilities:
Accounts Payable
$ 11,000
$ 6,000
Wages Payable 3,000 4,000
Income Tax Payable 5,000 4,500 Total Current Liabilities
19,000
14,500
Long Term Bonds Payable
20,000
23,000
TOTAL LIABILITIES
39,000
37,500
Owner’s Equity:
Common Stock ($10 par)
30,000
27,500
Retained Earnings
22,000
20,000
TOTAL LIAB. & OWNER’S EQUITY
$ 91,000
$ 85,000 INCOME STATEMENT
Sales (all credit sales)
$ 95,000
$ 89,000
Less: COGS
43,000
43,000
Gross Margin
52,000
46,000
Less: Operating Expenses
34,000
31,000
Loss on Sale of Fixed Assets 1,000
0
Net Income Before Taxes
17,000
15,000
Less: Income Taxes 7,000 6,000
NET INCOME
$ 10,000
$ 9,000
ADDITIONAL INFORMATION: Sold a fixed asset with an original cost of $9,000 and accumulated depreciation of $7,000 and purchased a new fixed asset for cash.
1. Cash Flow from Operations is:
A.
$25,000
B.
$24,500
C.
$25,500
D.
$27,000
Using the information from above...
Cash Flow from Investing is:
A.
($16,000)
B.
($15,000)
C.
$1,000
D.
($17,000)
QUESTION 3
Using the information from above...
Cash Flow from Financing is:
A.
($500)
B.
($11,000)
C.
($1,500)
D.
($8,500)
4 At Dec 31, ABC Company had currency and coins on hand of $500, deposits in checking accounts of $3,000, U.S. Treasury bills purchased on Dec. 1 and due on Jan. 31of $30,000, U.S. Treasury bills purchased on Nov 1 and due March 31 of $50,000, a money market account of $70,000, and 200 shares of Wal-Mart stock worth $2,000 purchased on Dec. 15 that management intends to sell on Jan. 15. What amount should ABC report as the balance in the Cash & Cash Equivalents account on Dec. 31?
A.
2009
Current Assets:
Cash
$ 9,000
$ ?
Accounts Receivable
14,000
18,000
Inventory
23,000
20,000
Total Current Assets
46,000
45,000
Fixed Assets
73,000
66,000
Less: Accum. Depreciation
(28,000)
(26,000)
TOTAL ASSETS
$ 91,000
$ 85,000
Current Liabilities:
Accounts Payable
$ 11,000
$ 6,000
Wages Payable 3,000 4,000
Income Tax Payable 5,000 4,500 Total Current Liabilities
19,000
14,500
Long Term Bonds Payable
20,000
23,000
TOTAL LIABILITIES
39,000
37,500
Owner’s Equity:
Common Stock ($10 par)
30,000
27,500
Retained Earnings
22,000
20,000
TOTAL LIAB. & OWNER’S EQUITY
$ 91,000
$ 85,000 INCOME STATEMENT
Sales (all credit sales)
$ 95,000
$ 89,000
Less: COGS
43,000
43,000
Gross Margin
52,000
46,000
Less: Operating Expenses
34,000
31,000
Loss on Sale of Fixed Assets 1,000
0
Net Income Before Taxes
17,000
15,000
Less: Income Taxes 7,000 6,000
NET INCOME
$ 10,000
$ 9,000
ADDITIONAL INFORMATION: Sold a fixed asset with an original cost of $9,000 and accumulated depreciation of $7,000 and purchased a new fixed asset for cash.
1. Cash Flow from Operations is:
A.
$25,000
B.
$24,500
C.
$25,500
D.
$27,000
Using the information from above...
Cash Flow from Investing is:
A.
($16,000)
B.
($15,000)
C.
$1,000
D.
($17,000)
QUESTION 3
Using the information from above...
Cash Flow from Financing is:
A.
($500)
B.
($11,000)
C.
($1,500)
D.
($8,500)
4 At Dec 31, ABC Company had currency and coins on hand of $500, deposits in checking accounts of $3,000, U.S. Treasury bills purchased on Dec. 1 and due on Jan. 31of $30,000, U.S. Treasury bills purchased on Nov 1 and due March 31 of $50,000, a money market account of $70,000, and 200 shares of Wal-Mart stock worth $2,000 purchased on Dec. 15 that management intends to sell on Jan. 15. What amount should ABC report as the balance in the Cash & Cash Equivalents account on Dec. 31?
A.