ACCT 557 Week 6 Quiz

ACCT 557 Week 6 Quiz

1. (TCO F) What is the primary purpose of the statement of cash flows?

2. (TCO F) Which of the following is not true?

3. (TCO F) Glitter Girl, Inc. recognized net income of $136,000 including $24,000 in depreciation expense.        
Additional changes from the balance sheet are as follows.                                              
Accounts Receivable            $3,000            decrease          
Prepaid Expenses                  $14,500          decrease          
Inventory                               $9,000            increase           
Accrued Liabilities                $10,000          decrease          
Accounts Payable                  $19,500          increase           
Compute the net cash from operating activities based on the above information.

4. (TCO F) Pig Builder's, Inc. shows the following as of December 31, 2012.                   
Acquired 50% of Wolf Corp's common stock for $160,000 cash, which was borrowed from Granny's Bank.         
Issued 5,000 shares of its preferred stock for land having a fair value of $320,000        
Issued 500 of its 11% debenture bonds, due 2017, for $392,000 cash    
Paid $120,000 toward bank loan. 
Purchased a patent for $220,000 cash      
Sold available for sales securities for $796,000    
Recognized $88,000 net increase in returnable long term customer deposits      
Pig's net cash provided by investing activities for 2012 is

5. (TCO F) Pig Builder's, Inc. shows the following as of December 31, 2012. Acquired 50% of Wolf Corp's common stock for $160,000 cash which was borrowed from Granny's Bank. Issued 5,000 shares of its preferred stock for land having a fair value of $320,000 Issued 500 of its 11% debenture bonds, due 2017, for $392,000 cash    
Paid $120,000 toward bank loan. 
Purchased a patent for $220,000 cash      
Sold available for sales securities for $796,000    
Recognized $88,000 net increase in returnable long term customer deposits      
Pig's net cash provided by financing activities for 2012 is 

6. (TCO F) Cash flows from operating activities (indirect and direct methods).     
Presented below is the income statement of Smiling Tiger, Inc.

In addition, the following information related to net changes in working capital is presented.

Required:

Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows: