Quiz 1 intermediate

1.      Stine Corp.'s trial balance reflected the following account balances at December 31, 2015:

§  Accounts receivable (net)                                       R$24,000

§  Trading securities                                                          6,000

§  Accumulated depreciation—equipment                     15,000

§  Cash                                                                             21,000

§  Inventory                                                                     30,000

§  Equipment                                                                   25,000

§  Patent                                                                            4,000

§  Prepaid expenses                                                          2,000

§  Land held for future business site                               18,000

         In Stine's December 31, 2015 statement of financial position, the current assets total is

•             R$101,000.                                                         

• R$92,000.

• R$87,000.                                                                  

• d.         R$83,000.

Answer explanation

=24 +6+21+30+2

1.      Kohler Company owns the following investments:

Trading securities (fair value) £ 60,000

Non-trading securities (fair value)    45,000

Held-for-collection securities (cost)    57,000 (fair value) 60,000

Kohler will report securities in its long-term investments section of

• exactly £105,000

• c. exactly £117,000.

• exactly £162,000

• d. exactly £102,000

Answer explanation

=45 +57

1.      For Grimmett Company, the following information is available:

Franchise Fees receivable                      ¥200,000

Trademarks                                                55,000

Long-term receivables                               75,000

In Grimmett’s statement of financial position, intangible assets should be reported at

• ¥ 55,000.                                                 

• ¥ 75,000.                                                 

• ¥255,000

• ¥275,000

1.      Houghton Company has the following items: share capital–ordinary, $820,000; treasury shares, $85,000; deferred taxes, $100,000 and retained earnings, $313,000. What amount should Houghton Company report as total equity?

• $948,000

•       $1,048,000.

• $1,148,000

• $1,218,000.

Answer explanation

 =920 -85 +313

1.      Olmsted Company has the following items: share capital–ordinary, $920,000; treasury shares, $85,000; deferred taxes, $100,000 and retained earnings, $363,000, Bonds Payable ,$250,000 . What amount should Olmsted Company report as total Liabilities?

• $350,000

• $250,000

• $100,000

• $1,398,000

Answer explanation

=100 +250

1.      Harding Corporation reports the following information:

Net income                                         $1,000,000

Depreciation expense                              280,000

Increase in accounts receivable               120,000

Harding should report cash provided by operating activities of

• $600,000

• $840,000

• $1,160,000.                                              

• $1,140,000

Answer explanation

=  1000 +280 -120

1.      Caroline, Inc. had the following transactions during 2015:

Purchased treasury shares 160,000

Paid cash dividend 380,000

Purchased equipment 212,000

Issued ordinary shares 588,000

What is Caroline, Inc.’s net cash provided (used) by investing activities?

• $212,000 used by investing activities.

• $552,000 provided by investing activities.

• $372,000 used by investing activities.

• $392,000 provided by investing activities

Answer explanation

1.      Caroline, Inc. had the following transactions during 2015:

Purchased treasury shares 160,000

Paid cash dividend 380,000

Purchased equipment 212,000

Issued ordinary shares 588,000

What is Caroline, Inc.’s net cash provided (used) by financing activities?

• £600,000 provided by financing activities.

• £48,000 provided by financing activities.

• £164,000 used by financing activities

• £428,000 used by financing activities.

1.      Packard Corporation reports the following information:

Net cash provided by operating activities               $275,000

Dividends paid                                                             60,000

Capital expenditures                                                  110,000

Payments of debt                                                         35,000

Packard’s free cash flow is

• $105,000

• $215,000

• $165,000

• $70,000

Answer explanation

= 275-110-60

1.      Keisler Corporation reports:

Cash provided by operating activities $200,000

Cash used by investing activities 110,000

Cash provided by financing activities   140,000

Beginning cash balance 90,000  

What is Keisler’s ending cash balance?

• .$230,000

• .$320,000

• .$540,000

• .$430,000

Answer explanation

=200 -110 +140 +90