ACCT 2121 PAL Session 4/4 Exam #3 Review

Which of the following is a cash inflow from operating activities?

• Paid a supplier to said goods to make products

• Received cash from a customer for services performed

• Sold equipment

• Purchased supplies for the office

Which of the following is a cash outflow from financing activities?

• Distributed and paid dividends to shareholders

• Issuance of bonds

• Purchase of equipment

• An increase in accounts receivable

Vellwich corporation reported net income of $62,000 for the year ended December 31st, 2021. During the year, accounts receivable increased $3,000, inventory decreased $1,600, accounts payable decreased $4,000 and wages payable increased $2,400. A depreciation expense of $4,500 was recorded. What is the net cash provided by (or used by) operating activities on the cash flow statement?

• $66,700

• $66,300

• $63,500

• $62,400

Based on the following information, what is net cash provided by (or used by) financing activities?

Purchased a piece of equipment for $9,000

Issued $28,000 worth of bonds in cash

Issued a note payable for $14,000

• $14,000

• $51,000

• $42,000

• $5,000

Based on the following information, what is net cash provided by or used by investing activities?

- Purchased a piece of equipment for $19,000 cash

- Sold equipment originally purchased for $39,000 with total depreciation of $17,000 for $20,000 cash

- Paid dividends to stockholders for $5,000 cash

• $17,000

• $1,000

• $12,000

• -$4,000

Sampson Corporation has 24,000 shares of common stock outstanding and 11,000 shares $24 par value 2% preferred stock outstanding. Dividends were not paid for last year. Sampson Corporation has $76,000 to distribute in the form of dividends. Calculate dividends distributed to common stockholders assuming the preferred stock is cumulative.

• $65,440

• $70,720

• $68,560

• $62,340

On June 1st, 2022, H.H. company signed a $58,000, 7-month, 6% note, maturing January 1st, 2023. How much interest would accrue on the note on December 31st, 2023?

• $497

• $3,480

• $290

• $2,030

Emerald corporation has 6,000,000 shares authorized. They also have 40,000 shares of stock issued, and 9,000 shares of treasury stock. How many shares outstanding do they have?

• 49,000

• 6,049,000

• 31,000

• 6,031,000

Sally corporation reported net income of $27,000 for the year ended December 31st, 2022. During the year, accounts receivable decreased $3,500, inventory increased $2,500, accounts payable increased $2,000 and taxes payable decreased $2,200. A depreciation expense of $4,000 was recorded. A $7,000 gain on sale of PP&E was also recorded. What is the net cash provided by (or used by) operating activities on the cash flow statement?

• $24,800

• $38,800

• $18,800

• $14,800

Coven Corporation has 28,000 shares of common stock outstanding and 7,500 shares $18 par value 3% preferred stock outstanding. Dividends were not paid for the last three years. Coven Corporation has $110,000 to distribute in the form of dividends. Calculate dividends distributed to preferred stockholders assuming the preferred stock is cumulative.

• $16,200

• $4,050

• $12,150

• $93,800