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FEU CFAS LQ SCF

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17 views

FEU CFAS LQ SCF

Uploaded by

Lewis Joshua Alcantara
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Far Eastern University

Conceptual Framework and Accounting Standards


Long Quiz

Problem 1:
Selected transactions for the Ecker Company are listed below.
1. Collected accounts receivable.
2. Declared and paid dividends on common stock.
3. Sold long-term investments for cash.
4. Issued stock for equipment.
5. Repaid five year note payable.
6. Paid employee wages.
7. Converted bonds payable to common stock.
8. Acquired long-term investment with cash.
9. Sold buildings and equipment for cash.
10. Sold merchandise to customers.

Requirement
Classify each transaction as either (a) an operating activity, (b)
an investing activity, (c) a financing activity, or (d) a noncash
investing and financing activity.

Problem 2:
Barton Company had net income of $193,000 in 2012. Depreciation
expense for the year is $48,000. During the year, Accounts
Receivable increased $9,000 and Prepaid Expenses decreased $1,000.
The company also sold equipment at a loss of $3,000.

Requirement
Calculate net cash flows from operating activities.

Problem 3:
During 2012, Blaine Company sold a building with a book value of
$145,000 for proceeds of $175,000. The company also sold long-term
investments for proceeds of $32,000. The company purchased land
and a new building for $320,000 by signing a long-term note
payable. No other transactions impacted long-term asset accounts
during 2012.

Requirement
Compute net cash flows from investing activities.
Problem 4:
Monroe Company issued common stock for proceeds of $21,000 during
2012. The company paid dividends of $3,000. The company also
issued a long-term note payable for $30,000 in exchange for
equipment during the year. The company sold treasury stock that
had a cost of $3,000 for $8,000.

Requirement
Compute net cash flows from financing activities.

Problem 5:
At January 1, 2012, Benny Enterprises reported a balance in the
Equipment account of $45,000. During the year the company
purchased equipment with a cost of $60,000 and sold equipment with
a book value of $30,000. The company reported a loss on the sale
of equipment of $4,000. Assume the indirect method is used.

Requirement
Determine what amount will be reported in (a) the operating
activities section and (b) the investing activities section with
regard to the purchase and sale of equipment.

Problem 6:
Small Company reported cost of goods sold of $179,000 on its 2012
income statement. The company’s beginning inventory was $35,000.
The ending inventory was valued at $40,000. The Accounts Payable
balance at January 1 was $25,000. The December 31 balance in
Accounts Payable was $22,000.

Requirement
Compute cash payments to suppliers.

Problem 7:
Show Company had total operating expenses of $155,000 in 2012,
which included Depreciation Expense of $33,000. Also during 2012,
prepaid expenses decreased by $9,000 and accrued expenses
increased by $7,500.

Requirement
Calculate the amount of cash payments for operating expenses in
2012 using the direct method.

Problem 8:
(a) Identify several alternatives for presenting significant
noncash activities in financial statements.
(b) Give three examples of significant noncash transactions.
Problem 10:
The following information is available for Segway Company:
Receipts from customers $210,000
Dividends from stock investments 3,000
Proceeds from sale of equipment 18,000
Proceeds from issuance of stock 90,000
Payments for goods 100,000
Payments for operating expenses 75,000
Interest paid 5,000
Taxes paid 4,000
Dividends paid 20,000

Requirement
Based on the preceding information, compute the net cash provided
by operating activities.

Problem 11:
The general ledger of Link Company provides the following
information:
End of Year Beginning of Year
Accounts Receivable $ 55,000 $ 94,000
Inventory 310,000 210,000
Accounts Payable 40,000 65,000
The company's net sales for the year was $2,200,000 and cost of
goods sold amounted to $1,500,000.

Requirement
Compute the following:
(a) Cash receipts from customers.
(b) Cash payments to suppliers.

Problem 12
The income statement of Roman Inc. for the year ended December 31,
2012, reported the following condensed information:
Service revenue $700,000
Operating expenses 360,000
Income from operations 340,000
Income tax expense 60,000
Net income $280,000

Roman's balance sheet contained the following comparative data at


December 31:
2012 2011
Accounts receivable $75,000 $40,000
Accounts payable 40,000 50,000
Income taxes payable 6,000 3,000

Roman has no depreciable assets. Accounts payable pertains to


operating expenses.

Requirement
Prepare the operating activities section of the statement of cash
flows using the direct method.

END OF EXAMINATION

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