Use the following information from Artizan, Inc. to prepare the statement of cash flows for May using the indirect method.
Beginning cash balance: 21,470
Ending cash balance: 63,735
Net change in accounts receivable 1,800
Net change in inventory (2,675 )
Net change in accounts payable (890 )
Depreciation expense 8,000
Net income 23,450
Cash paid for dividends 625
Cash received from a loan 9,000
Purchase of treasury of stock 3,780
Cash received from sale of studio equipment 6,235
(
Q. 2) Other receivables include nontrade receivables such as loans to company officers.
a. True
b. False
Indicate whether the statement is true or false
(
Q. 3) On OCTOBER 31, 2011, Bondable, Inc. issued 20,000 of 10-year, 6 bonds at 100. The bonds pay interest ANNUALLY on October 31. Which of the following will appear on Bondable's balance sheet at December 31, 2011?
A) Bonds payable 18,800
B) Bonds payable 20,000
C) Bonds payable 21,200
D) Interest expense 1,200
(
Q. 4) Gross profit is a measure of the amount of sales dollars available to cover expenses after covering the cost of the goods sold.
a. True
b. False
Indicate whether the statement is true or false
(
Q. 5) Show the effect on the accounting equation for each of the events below. Fill in the AMOUNT and the LETTER of the account title from the list of accounts provided.
A Additional paid-in capital D Dividends G Net income
B Cash E Dividends payable H Revenue
C Common stock F Interest expense I Treasury stock
Shareholders' equity
Assets Liabilities Contributed capital Retained earnings
Company issued 1,000 shares of 1 par value stock for 4 each
Company repurchased 20 shares for 5 each
Company declared a 10,000 dividend to be paid in two months
Company paid the 10,000 dividend from above
What will be an ideal response?
(
Q. 6) A turnaround document is a document that is printed as an output of multiple computer processes and is used to capture and input a previous transaction.
Indicate whether the statement is true or false
Quick Reply
