Cash Flow from Operations

Question 1

During the quarter, Menon N Inc. collected $100 of cash from customers, paid $60 of cash to suppliers, paid $30 of cash to employees and other creditors, and recorded a $5 loss on sale of equipment. There were no other cash flows related to operating activities.

What was Menon N’s Cash Flow from Operations during the quarter?

a)      $25

b)      $5

c)      $10

d)      $15

e)      $20

Question 2

Saxena Ltd. had Revenue of $1000, Depreciation and Amortization Expense of $100, Interest Expense of $100, and Tax Expense of $50. All other Expenses were $400. What was Saxena’s EBITDA?

a)      $1000

b)      $250

c)      $400

d)      $500

e)      $600

Question 3

Mangini Co.’s Balance Sheet had the following line item:

                                                                                                                     12/31/2012         12/31/2011

Accounts Receivable, net of allowances of $500 and $450, respectively                    $9,200             $8,400

What percentage of gross accounts receivable does Mangini expect to be uncollectable as of 12/31/2012?

a)      5.15%

b)      4.43%

c)      5.08%

d)      5.36%

e)      5.01%

Question 4

Odaine Inc.’s footnotes had the following line item:

                                                                      12/31/2012       12/31/2011

Allowance for Doubtful Accounts                   $800                $650

Odaine also disclosed that Bad Debt Expense was $1000 in 2012 and $890 in 2011. There were no recoveries of previously-written off accounts in either year. What were total write-offs of uncollectable accounts for the year ended 12/31/2012?

a)      $800

b)      $150

c)      $110

d)      $850

e)      $1,150

Question 5

JannaChan Ltd.’s Statement of Cash Flows had the following line items:

                                                   2012             2011

Bad Debt Expense, net             $1,500             $350

Increase in Accts Receivable               $(6,600)                       $(2,900)

JannaChan reported Sales of $150,000 during the year ended 12/31/2012. There were no write-offs or recoveries during 2012. How much cash did JannaChan collect from customers during the year ended 12/31/2012?

a)      $143,400

b)      $156,600

c)      $150,000

d)      $148,500

e)      $141,900

Question 6

A retail company, Telmo-Mart, had the following line item on its Balance Sheet:

                                  12/31/2012         12/31/2011

Inventory                     $5,500             $5,100

Telmo-Mart’s Income Statement had the following line item:

                                                    2012                        2011

Cost of Goods Sold                 $91,000                       $87,000

How much inventory did Telmo-Mart purchase during the year ended 12/31/2012?

a)      $90,600

b)      $86,600

c)      $91,400

d)      $91,000

e)      $87,400

Question 7

Nguyen Co. incurred the following costs during the quarter:

Raw materials used in production                                $132,000

Marketing materials used by sales staff                                   $114,000

Wages of factory workers                                            $191,000

Salaries of sales staff                                                   $391,000

Depreciation on factory and production equipment     $152,000

Depreciation on headquarters building                         $132,000

Manufacturing overhead                                              $172,000

How much of these costs would have been recorded in Nguyen's Work in Process Inventory account during the quarter?

a)      $779,000

b)      $495,000

c)      $1,252,000

d)      $647,000

e)      $488,000

Question 8

A manufacturing company, Kutty Industries Ltd., had the following line items in a footnote:

                                12/31/2012        12/31/2011

Raw Materials              $150                $140

Work in Process           $215                $200

Finished Goods                        $250                $240

                                    $615                $580

LIFO Reserve              $(100)              $(60)

Total Inventory                        $515                $520

Kutty Industries’ Income Statement had the following line item:

                                                2012                2011

Cost of Goods Sold                 $1,850             $1,725

What would Kutty Industries’s Cost of Goods Sold had been if they had used the FIFO inventory method for the year ended 12/31/2012?

a)      $1,750

b)      $1,950

c)      $1,810

d)      $1,890

e)      $1,850