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Question
Use the following calendar-year information to prepare David Company's statement of cash flows using the direct method. You may omit the schedule reconciling net income and net cash provided or used by operating activities.
| Cash paid to purchase machinery | $ 124,000 |
| Cash paid for merchandise inventory | 220,000 |
| Cash paid for operating expenses | 280,000 |
| Cash paid for interest | 4,000 |
| Cash received for interest | 10,000 |
| Cash proceeds from sale of land | 100,000 |
| Cash balance at beginning of year | 15,000 |
| Cash balance at end of year | 77,000 |
| Cash borrowed on a short-term note | 25,000 |
| Cash dividends paid | 24,000 |
| Cash received from stock issuance | 57,000 |
| Cash collections from customers | 522,000 |
Answer
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Related questions
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Periods
12 Percent 1
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1.6901 3
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42
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B. Neither product A nor product B should be processed further.
C. Only product B should be processed further.
D. Only product A should be processed further.
E. A processing further decision cannot be made from the available data.
Q:
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B. Income will increase by $7 per unit.
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Q:
Assume markup percentage equals desired profit divided by total costs. What is the correct calculation to determine the dollar amount of the markup per unit?
A. Total cost times markup percentage.
B. Total cost per unit times markup percentage per unit.
C. Total cost per unit divided by markup percentage per unit.
D. Markup percentage per unit divided by total cost per unit.
E. Markup percentage divided by total cost.
Q:
Capital budgeting decisions are generally based on:
A. Tentative predictions of future outcomes.
B. Perfect predictions of future outcomes.
C. Results from past outcomes only.
D. Results from current outcomes only.
E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.