Cash Flow Exercise

Where would cash collected from customers appear on the statement of cash flows?

1. Operating section
2. Investing section
3. Financing section
4. Supplemental schedule
   
   

Fritz Corporation began the year with $900,000 in accounts receivable. During the year, revenue totaled $7,000,000. Fritz ended the year with $750,000 in accounts receivable. How much cash did Fritz collect from customers during the year?

1. $750,000
2. $7,150,000
3. $6,850,000
4. $900,000
   
   

Where would the redemption of bonds payable appear on the statement of cash flows?

1. Operating section
2. Investing section
3. Financing section
4. Supplemental schedule
   
   

During the year, Rafael Corporation paid dividends of $23,000, received cash by signing a note payable of $105,000, purchased a piece of equipment for $29,400, and received dividend income of $12,000. What would be Rafael's cash flow from financing activities for the year?

1. $64,600
2. $82,000
3. $52,600
4. $94,000
   
   

Happy Toy Company began 20X9 with $1,000 in inventory and $4,500 in accounts payable. During the year, Happy Toy incurred cost of goods sold of $25,000. Happy Toy ended 20X9 with $2,700 in inventory and $3,800 in accounts payable. How much cash did Happy Toy pay for purchases during 20X9?

1. $26,000
2. $22,600
3. $24,000
4. $27,400
   
   

Where would the purchase of available for sale securities appear on the statement of cash flows?

1. Operating section
2. Investing section
3. Financing section
4. Supplemental schedule
   
   

Crystal Bell Company generated $48,900 in net income during the year. Included in this number are a deprecation expense of $13,000 and a gain on the sale of equipment of $4,000. In addition, accounts receivable increased by $16,000, inventory decreased by $5,090, accounts payable decreased $4,330 and interest payable increased $1,200. Based on the above information, what would Crystal Bell's cash flow from operations using the indirect method?

1. $54,120
2. $71,940
3. $48,900
4. $43,860
   
   

Transportation Inc. incurred rent expense of $98,000 during the year. Prepaid rent increased by $34,000 during the year. How much cash did Transportation pay for rent during the year?

1. $98,000
2. $64,000
3. $132,000
4. $34,000