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18) Selling property, plant and equipment for $10,000 cash would be considered a cash inflow from investing activities on the statement of cash flows. 19) Walker Inc. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: The change in Accounts.
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80) Samuel Corp. has provided the following information for the year ended December 31, 2015. Samuel Corp Comparative Balance Sheet December 31, 2015 and 2014 20152014Increase / (Decrease) Assets Current Assets: Cash$33,000$13,000$20,000 Accounts Receivable29,00036,000(7,000) Inventory56,00029,00027,000 Plants Assets, net126,00092,00034,000 Total Assets$244,000$170,000$74,000 Accounts Payable$9,000$13,000$(4,000) Accrued Liabilities7,0003,0004,000 Long-term Notes Payable70,00079,000(9,000) Total Liabilities$86,000$95,000$(9,000) Common Stock$55,000$3,000$52,000 Retained Earnings115,00078,00037,000 Treasury Stock(12,000)(6,000)(6,000) Total Stockholders' Equity$158,000$75,000$83,000 Total Liabilities and Stockholders' Equity$244,000$170,000$74,000 Samuel Corp Income Statement Year ended December 31, 2015 Sales Revenue$291,300 Interest.
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7) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record the following transactions: Purchased Treasury Stock for $3,000 Paid dividends of $10,000 Avatar Company Spreadsheet for Statement of Cash Flows Year Ended December 31, 2014 BalanceTransaction AnalysisBalance Panel A—Balance Sheet:Dec 31, 2013DebitCreditDec.
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2) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record Depreciation Expense for the year of 2014 of $12,000. Avatar Company Spreadsheet for Statement of Cash Flows Year Ended December 31, 2014 BalanceTransaction AnalysisBalance Panel A—Balance Sheet:Dec 31, 2013DebitCreditDec 31,.
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8) Avatar Company uses the indirect method to prepare its statement of cash flows. Refer to the partially completed worksheet below. Complete the worksheet, including the data showing the net change in cash, plus all control totals. Avatar Company Spreadsheet for Statement of Cash Flows Year Ended December 31, 2014 BalanceTransaction AnalysisBalance Panel A—Balance Sheet:Dec.
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1) An annual report provides information about a company's financial condition. 2) A quarterly report filed with the Securities and Exchange Commission is called a Form 10-K. 3) Management's discussion and analysis section of the annual report is the company's attempt to explain its financial statements and to discuss its performance. 4) The.
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6) The debt to equity ratio of four companies is given below. Debt to equity ratio Lewis Inc. 1.30 Jackson Inc. 1.39 Jones Corp. 1.88 Roberts Corp. 0.92 Which of the following companies has less debt than equity in its capital structure? A) Lewis Inc. B) Jackson Inc. C) Jones Corp. D) Roberts Corp. Learning Objective 14-7 1) The fact that invested cash earns income over.
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5) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record the acquisition of plant assets for $52,000 cash. Avatar Company Spreadsheet for Statement of Cash Flows Year Ended December 31, 2014 BalanceTransaction AnalysisBalance Panel A—Balance Sheet:Dec 31, 2013DebitCreditDec 31, 2014 Cash$18,000$21,000 Accounts.
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11) Consolidated statements combine the balance sheets, income statements, and cash flow statements of the parent company with those of its controlling interest affiliates. 12) Consolidation accounting is the way to combine the financial statements of two or more companies that have the same owners. 13) Which of the following is true.
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21) The purchase of equipment financed by a Long-Term Notes Payable is an example of: A) investing activity. B) financing activity. C) operating activity. D) non-cash investing and financing activity. 22) The contribution of equipment by a stockholder in exchange for common stock is an example of: A) investing activity. B) financing activity. C) operating activity. D) non-cash investing.
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48) Christopher Corp. is preparing its statement of cash flows using the indirect method. It provides the following information about transactions for the year: Plant assets, net—beginning balance: $108,000 Plant assets, net—ending balance: $144,000 Equipment costing $62,400 was purchased for cash Equipment with a net asset value of $12,000 was sold for $16,800 Depreciation Expense.
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36) The income statement and a partial balance sheet of Williams Company for the year ended December 31, 2014 is presented below. Prepare the operating activities section of the statement of cash flows using the direct method. Assume the Accrued Liabilities relate to Miscellaneous Operating Expenses. Income Statement Sales Revenues$1,500,000 Cost of Goods.
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8) Transnational Company is looking for additional capital in order to purchase a property to build their headquarters. They found an investor who was willing to sell them land worth $500,000 in exchange for stock in the company. This transaction would be shown in the financing activities section of the.
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18) Data for Atlantis Inc. is given below: Atlantis Inc. Comparative Balance Sheet December 31, 2015 and 2014 20152014 Assets Current Assets: Cash$12,000$10,200 Accounts Receivable, Net16,10016,800 Merchandise Inventory45,00031,000 Prepaid Expenses6,5003,900 Total Current Assets$79,600$61,900 Property, Plant, and Equipment, Net265,000233,000 Total Assets$344,600$294,900 Liabilities Total Current Liabilities$9,900$11,200 Long-term Liabilities60,00050,000 Total Liabilities69,90061,200 Stockholders' Equity Preferred Stock, 3%75,00075,000 Common Stockholders' Equity, no par$199,700$158,700 Total Liabilities and Stockholders' Equity$344,600$294,900 Prepare a horizontal analysis of the comparative balance sheet.
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10) Most public companies use the indirect method to prepare their statement of cash flows because the FASB prefers this method. 11) Interest Expense paid on a Note Payable would be included in the operating activities section of the statement of cash flows. 12) Avatar Company uses the direct method to prepare.
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41) Available-for-sale (AFS) investments that are planned to be held longer than a year are reported as: A) equity. B) current assets. C) long-term assets. D) either current assets or long-term assets. 42) Available-for-sale (AFS) investments are reported as ________ if the business expects to sell them within one year. A) current assets B) equity C) long-term assets D).
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  Learning Objective 16-1 1) The statement of cash flows explains why net income as reported on the income statement does not equal the change in the cash balance. 2) Investors and management use the statement of cash flows to evaluate a firm's profitability. 3) Operating activities on a statement of cash flows include.
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3) Companies make a year-end adjustment to trading investments to bring the account to historical value. 4) Realized gains or losses occur when a company adjusts an investment to fair value but have not yet disposed of the investment. 5) The unrealized holding gains and losses on available-for-sale investments are reported on.
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20) Wellington Company uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ended December 31, 2015: On Wellington's statement of cash flows, using the direct method, what amount will be shown for total net cash flow from operating activities?.
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Learning Objective 16-5 1) Genius Inc. uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record Net Income for the year ended December 31, 2014 of $49,000. Genius Inc. Spreadsheet for Statement of Cash Flows Year Ended December 31, 2014 BalanceTransaction AnalysisBalance Panel A—Balance.
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1) The study of percentage changes in comparative financial statements is called horizontal analysis. 2) Horizontal analysis compares each item in the income statement to the net sales amount. 3) Trend analysis is a form of horizontal analysis. 4) If an analyst wants to see how gross profit of a company has changed.
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35) Avatar Company uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ending December 31, 2015: Avatar Company Comparative Balance Sheet December 31, 2015 and 2014 Increase / 20152014 (Decrease) Cash$33,000$13,000$20,000 Accounts Receivable29,00036,000(7,000) Inventory56,00029,00027,000 Plant and Equipment, net126,00092,00034,000 Total Assets$244,000$170,000$74,000 Accounts Payable$9,000$13,000$(4,000) Accrued Liabilities7,0003,0004,000 Long-term Notes Payable70,00079,000(9,000) Total Liabilities$86,000$95,000$(9,000) Common Stock$55,000$3,000$52,000 Retained Earnings115,00078,00037,000 Treasury Stock(12,000)(6,000)(6,000) Total.
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4) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record the increases and decreases in current assets (other than cash) and current liabilities. Avatar Company Spreadsheet for Statement of Cash Flows Year Ended December 31, 2014 BalanceTransaction AnalysisBalance Panel A—Balance.
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28) Which of the following sections of the statement of cash flows include activities that affect current assets and current liabilities on the balance sheet? (Assume the indirect method is used.) A) the investing section B) the financing section C) the operating section D) the non-cash investing and financing section 29) Which of the following.
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Learning Objective 14-8 1) On January 1, 2015, Finch Company issued $72,000 of 5-year bonds with a stated rate of 8%. The market rate at time of issue was 12%, so the bonds were discounted and sold for $61,401. Finch uses the effective-interest method of amortization for bond discount. Semiannual interest.
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11) The following is summary of information presented on the financial statements of a company on December 31, 2015. Account 2015 2014 Current Assets $82,000 $70,000 Accounts Receivable 60,000 68,000 Merchandise Inventory 62,000 53,000 Current Liabilities 52,000 46,000 Long-term Liabilities 39,000 45,000 Common Stock 70,000 50,000 Retained Earnings 65,000 40,000 What would a horizontal analysis report show with respect to long-term liabilities? A) long-term liabilities decreased by $30,000 B) long-term liabilities decreased by 40% C) long-term liabilities decreased.
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6) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record the following transactions: Issued Common Stock for $28,000 Issued new Long-Term Notes Payable for $34,000 Repaid Long-Term Notes Payable for $40,000 Avatar Company Spreadsheet for Statement of Cash Flows Year Ended.
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37) Sentrino Company uses the direct method for its statement of cash flow. Assume Accrued Liabilities relate to Operating Expenses. It reports the following information regarding the year ending December 31, 2014: Income Statement Sales Revenue$312,000 Cost of Goods Sold247,000 Operating expenses:  2,500 Net Income$32,500 Partial Balance Sheet 20132014 Accounts Receivable (net)$15,600$19,500 Inventories28,60023,400 Accrued Liabilities3,9001,560 Accounts Payable (inventory)9,10015,600 Assume that there were.
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11) A business's cash receipts and cash payments for a specific period are reported on a(n): A) income statement. B) balance sheet. C) cash flow statement. D) cash reconciliation statement. 12) Which of the following is one of the purposes of the statement of cash flows? A) to predict future Net Income B) to evaluate management decisions C).
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58) Taylor Company follows the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: Note: Net Income for the year was $89,000. Based on the above information, calculate the dividends declared during the year 2014. A) $3,000 B) $89,000 C) $65,000 D) $24,000 59) Taylor Company uses.
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31) Beige Corporation pays $500,000 to acquire 40% of the equity securities of Olive Technologies on May 5, 2015. This investment will be classified as a(n): A) trading investment. B) available for sale. C) significant interest investment. D) held-to-maturity. 32) Beige Corporation pays $500,000 to acquire 40% of the equity securities of Olive Technologies on.
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31) Which of the following is an example of investment income from securities? A) deferred tax assets B) depreciation of long-term assets C) sale of fixed assets D) interest earned from debt investments 32) Short-term investments: A) include debt and equity securities that the investor expects to hold for more than a year. B) are investments in.
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6) Refer to the following information of Harris Inc. Net Cash from operating activities, $25,000 Net Cash from financing activities, $35,000 Net Cash used in investing activities, apart from investment in Long-Term Assets, $12,000. Net Cash used in investing activities, ($20,000) Investment in Long-Term Assets, $12,000 Cash dividend paid $10,000. Calculate free cash flow of Harris Inc. Learning.
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75) Starfire Company uses the indirect method to prepare the statement of cash flows. Refer to the following income statement: Starfire Company Income Statement Year Ended December 31, 2015 Sales Revenue$275,000 Interest Revenue2,600 Loss on Sale of Plant Assets2,000 Total Revenues and (Losses)$279,600 Cost of Goods Sold135,000 Salary Expense66,500 Depreciation Expense32,000 Other Operating Expenses35,900 Interest Expense2,400 Income Tax Expense6,500 Total Expenses278,300 Net Income/(loss)$1,300 Additional information provided.
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21) A debt security: A) represents a credit relationship with another company or governmental entity, and typically pays interest for a fixed period. B) represents stock ownership in another company and sometimes pays dividends. C) is a standardized contract between two parties to buy or sell an underlying security at a predetermined price.
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21) Aurum Services acquired 100,000 shares of Gamma Metals on January 1, 2015. Gamma pays a cash dividend of $0.25 per share on March 2, 2015. With the current investment, Aurum Services holds 8% of Gamma. In the journal entry on March 2, 2015: A) Long-term Investments—Available-for-Sale will be credited. B) Dividend.
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1) When a company makes investments in equity securities with less than 20% ownership using idle cash, its total equity will increase. 2) Equity securities, in which the investor owns less than 20% ownership in the voting stock of the investee, can be either trading investments or available-for-sale investments. 3) In the.
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11) Held-to-maturity investments are categorized as current assets or long-term assets on the balance sheet, depending on the maturity date. 12) Long-term investments are also known as marketable securities. 13) Long-term investments are all investments that are not short-term. 14) Held-to-maturity investments are categorized as long-term assets on the balance sheet, irrespective of.
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