FARAP Day 2 Quiz 2

The financial statements for 2019 were issued on March 31, 2020. On March 1, 2020, the 6% note payable was refinanced on a long-term basis. Under the loan agreement for the 8% note payable, the entity has the discretion to refinance the obligation for at least twelve months after December 31, 2019. What amount should be reported as total current liabilities?

• 7,300,000

• 9,800,000

• 8,800,000

• 9,200,000

What total amount should be reported as related party disclosures in the notes to the 2019 consolidated financial statements?

• 4,500,000

• 1,250,000

• 1,750,000

• 3,000,000

What total shareholders’ equity should be reported at year-end?

• 8,000,000

• 8,500,000

• 5,800,000

• 8,700,000

What net amount should be reported as other comprehensive income for the current year?

• 4,000,000

• 3,500,000

• 3,200,000

• 7,000,000

What amount should be reported as comprehensive income for the current year?

• 5,200,000

• 7,700,000

• 8,500,000

• 7,200,000

What is the total income before tax?

• 12,000,000

• 12,150,000

• 11,750,000

• 11,550,000

What is the total amount of expenses before tax?

• 7,500,000

• 5,650,000

• 5,500,000

• 7,650,000

What is the net income for the year?

• 6,500,000

• 4,500,000

• 4,650,000

• 4,250,000

What amount should be reported as net cash used in financing activities?

• 4,500,000

• 3,500,000

• 2,500,000

• 5,500,000

What amount should be reported as net cash used in investing activities?

• 5,500,000

• 5,000,000

• 4,700,000

• 6,300,000