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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 Transaction Analysis Transaction Analysis Balance Panel A—Balance.
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11) Which of the following is an example of hardware? A) monitor B) malware C) firewall D) operating system 12) Which of the following is an entry-level accounting software package? A) Microsoft Word B) QuickBooks C) Minitab D) Router 13) An enterprise resource planning (ERP) is a ________. A) hardware system that controls the access of employees to different levels of.
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35) Avatar Auto Parts 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 2015 2014 Increase / (Decrease) Cash $33,000 $13,000 $20,000 Accounts Receivable 29,000 36,000 (7,000) Inventory 56,000 29,000 27,000 Plant and Equipment, net 126,000 92,000 34,000 Total Assets $244,000 $170,000 $74,000 Accounts Payable $9,000 $13,000 $(4,000) Accrued Liabilities 7,000 3,000 4,000 Long-term Notes Payable 70,000 79,000 (9,000) Total Liabilities $86,000 $95,000 $(9,000) Common Stock $55,000 $3,000 $52,000 Retained.
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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 Panel A—Balance Sheet Dec 31, 2013 Debit Credit Dec 31, 2014 Cash $18,000 $21,000 Accounts Receivable 35,000 4,000 31,000 Inventory 25,000 28,000 53,000 Plant.
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28) Which of the following sections of the statement of cash flows includes 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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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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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 Transaction Analysis Transaction Analysis Balance Panel A—Balance Sheet Dec.
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11) One of the advantages of a computerized accounting information system, as compared to a manual one, is that it does not cost to ensure that the firm's data and information are secure. 12) In an accounting information system, outputs are the reports used for decision making, including the financial statements. 13).
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34) Avatar Auto Parts 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 2015 2014 Increase / (Decrease) Cash $33,000 $13,000 $20,000 Accounts Receivable 29,000 36,000 (7,000) Inventory 56,000 29,000 27,000 Plant and Equipment, net 126,000 92,000 34,000 Total Assets $244,000 $170,000 $74,000 Accounts Payable $9,000 $13,000 $(4,000) Accrued Liabilities 7,000 3,000 4,000 Long-term Notes Payable 70,000 79,000 (9,000) Total Liabilities $86,000 $95,000 $(9,000) Common Stock $55,000 $3,000 $52,000 Retained.
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74) Avatar Auto Parts Company uses the indirect method to prepare the statement of cash flows. Refer to the following income statement: Avatar Company Income Statement Year Ended December 31, 2015 Sales Revenue$360,000 Interest Revenue1,500 Gain on Sale of Plant Assets6,000 Total Revenues and Gains$367,500 Cost of Goods Sold165,000 Salary Expense67,500 Depreciation Expense18,000 Other Operating Expenses34,500 Interest Expense1,500 Income Tax Expense7,500 Total Expenses294,000 Net Income/(loss)$73,500 Additional.
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41) Gamma Corp. is considering an investment opportunity with the following expected net cash inflows: Year 1, $250,000; Year 2, $350,000; Year 3, $395,000. The company uses a discount rate of 12%, and the initial investment is $750,000. The following table is available: Present Value of $1: 10% 12% 14% 15% 1 0.909 0.893 0.877 0.870 2 0.826 0.797 0.769 0.756 3 0.751 0.712 0.675 0.658 4 0.683 0.636 0.592 0.572 5 0.621 0.567 0.519 0.497 The IRR of the project will.
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1) An accounting information system (AIS) collects, records, stores, and processes accounting data to produce information that is useful for decision makers. 2) The collection of time records is an accounting information system activity that is classified as a business transaction that involves the sale of merchandise inventory. 3) An effective accounting.
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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 Increase / 20152014(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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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 Transaction Analysis Transaction Analysis Balance Panel A—Balance Sheet Dec 31, 2013 Debit Credit Dec.
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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: Walker Inc. Comparative Balance Sheet December.
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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.
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36) The income statement and a partial balance sheet of Williams Alloy 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.
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31) Which of the following is an example of a storage device in an accounting information system? A) monitor B) network C) printer D) server 32) Which of the following is an input device in an accounting information system? A) keyboard B) internet protocol C) printer D) router 33) Which of the following is an output device in an accounting.
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16) A subsidiary ledger is ________. A) an accounting journal designed to record a specific type of transaction B) a created list of accounts used by a business entity to define each class of items for which cash is spent or received C) a complete record of business transactions recorded in a ledger.
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21) An accounting information system is said to be relevant, if it ________. A) works smoothly with the business's employees and organizational structure B) safeguards a business's assets and reduces the likelihood of fraud and errors C) provides information that will improve decision making and reduce uncertainty D) accommodates changes in the business over.
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24) Which will be included in the financing activities section of a direct method statement of cash flow? A) changes in Accounts Payable B) changes in Accounts Receivable C) changes in Inventory D) changes in Long-Term Notes Payable 25) A company's Inventory account increased $27,900 and its Accounts Payable account decreased $19,500 during the year..
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Learning Objective APP. C-4 1) Hardware is electronic equipment that includes computers, monitors, printers, and the network that connects them. 2) Enterprise resource planning (ERP) systems are software systems that can integrate all of a company's functions, departments, and data into a single system. 3) One of the main disadvantages of a typical.
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36) Which of the following will be recorded in the Other Accounts CR column of the cash receipts journal? A) cash sales B) receipt of interest revenue C) receipt of accounts receivable D) sales discounts 37) A CR.5 posting reference in a subsidiary ledger indicates that the ________. A) posting is transferred from the cash receipts.
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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.
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13) The purchases journal of a business that uses periodic inventory system will include a column titled ________. A) Cost of Goods Sold DR B) Purchases DR C) Accounts Payable DR D) Merchandise Inventory DR 14) Cash purchases are generally recorded in the ________. A) sales journal B) cash receipts journal C) cash payments journal D) purchases journal 15) Which.
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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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14) Gladiator Inc. uses the direct method to prepare its statement of cash flows. Refer to the following information reported for the year 2014 and determine the amount of cash paid for merchandise inventory. Cost of Goods Sold, $130,000 Inventory, beginning balance, $25,000 Inventory, ending balance, $65,000 Accounts Payable, beginning balance, $7,500 Accounts Payable, ending.
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21) Which of the following transactions is recorded in the "Receive Payments" function of QuickBooks? A) electricity bill payments B) merchandise inventory sold on account to a customer C) products sold for cash to a customer D) coupon payments to the bondholders 22) Which of the following transactions is recorded in the "Enter Bills" function.
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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).
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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 Transaction Analysis Transaction Analysis Balance Panel A—Balance Sheet Dec 31,.
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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 Panel A—Balance Sheet Dec.
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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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26) MultiMet Corporation sold merchandise for $4,450 to Simpsons Inc. on credit. The cost of goods sold was $1,185. Assuming that the firm is following a perpetual inventory system, it will record $4,450 in the ________. A) general journal B) Accounts Receivable DR, Sales Revenue CR column of the sales journal C) Merchandise.
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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 discuss its performance. 4) The audit.
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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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6) Generally, all transactions are recorded in a special journal as well as the general journal. 7) Entries in the sales journal are posted to both the accounts receivable subsidiary ledger and the general ledger. 8) After posting entries in a sales journal to the general ledger, the Accounts Receivable balance in.
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76) Avatar Auto Parts Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: Avatar Company Comparative Balance Sheet December 31, 2015 and 2014 20152014Increase/decrease Cash$42,000$36,000$6,000 Accounts Receivable62,00070,000(8,000) Inventory106,00050,00056,000 PP&E, net240,000180,00060,000 Total assets$450,000$336,000$114,000 Additional information provided by the company includes the following: Equipment costing $104,000 was purchased for cash. Equipment.
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58) Taylor Chemicals Company follows the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: Taylor Company Comparative Balance Sheet December 31, 2014 and 2013 2014 2013 Increase/decrease Common Stock $30,000 $2,000 $28,000 Retained Earnings 154,000 89,000 65,000 Treasury Stock (8,000) (5,000) (3,000) Total equity $176,000 $86,000 $90,000 Note: Net Income for the year was $89,000. Based on the above information, calculate the dividends.
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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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21) Gamma Corporation is considering an investment of $500,000 in a land development project. It will yield cash flows of $200,000 for 5 years. The company uses a discount rate of 9%. What is the net present value of the investment? Present value of annuity of $1: 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 4 3.312 3.24 3.17 5 3.993 3.89 3.791 A) $230,000 B) $278,000 C) $330,000 D) $200,000 22).
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11) When a company is evaluating an investment proposal with high risk, a low discount rate should be used, and vice versa. 12) Compound interest used in discounted cash flow calculations assumes that companies will reinvest future cash flows whenever they are received. 13) If an investment project's internal rate of return.
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31) The following details are provided by Doppler Systems: Project A Project B Project C Project D Initial investment $420,000 $200,000 $550,000 $500,000 PV of cash inflows $570,000 $380,000 $800,000 $390,000 Payback period (years) 3.6 3.2 4.0 2.0 NPV of project $150,000 $180,000 $250,000 ($110,000) Calculate the profitability index for Project A. A) 0.98 B) 1.08 C) 1.36 D) 1.66 32) The following details are provided by Doppler Systems: Project A Project B Project C Project D Initial investment $420,000 $200,000 $550,000 $500,000 PV of cash inflows $570,000 $380,000 $800,000 $390,000 Payback period (years) 3.6 3.2 4.0 2.0 NPV of.
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