1-Suppose that a company has the following balance sheet for the
end of the year 2019. Now, you have the following 2020 data: (a)
Net income: 125.000 TL; (b) Depreciation expense: 33.000 TL; (c)
Loss on sale of PPE: 2.000 TL; (d) Increase in A/R: 42.000 TL; (e)
Increase in Inventory: 54.000 TL; (f) Decrease in Prepaid expenses:
2.000 TL(g)Decrease in A/P: 17.000 TL; (h) Increase in Accrued
expenses: 10.000 TL. What is the cash flow from operating
activities in 2020?
A-59.000 TL
B-66.000 TL
C-54.000 TL
D-65.000 TL
3- Refer to Question 1. Suppose that you have the following
additional 2020 information: (a) Bonds of 40,000 TL were redeemed
(paid) at their face value for cash; (b) Common stock of 50,000 was
issued at 3,2 TL for cash; (c) 10.000 of outstanding shares are
repurchased at 2 TL, then half of these shares are sold at 1,5 TL;
(d) Cash dividends of 55,000 TL were declared and paid. What is the
cash flow from financing activities in 2020? (Note that, cost
method is used for treasury shares)
A-77.500 TL
B-52.500 TL
C-20.500 TL
D-40.500 TL
6- Refer to Question 1 and 3. What is the retained earnings at
the end of the year 2020?
A-203.500 TL
B-206.000 TL
C-78.500 TL
D-258.500 TL
7- Refer to Question 1, 3 and 6. Which one is true for the
statement of changes in owners' equity?
A-Change in common stock is 110.000 TL
B-Change in additional paid-in capital is 107.500 TL
C-Change in treasury shares is -10.000 TL
D-All of the above
2019 37.000,00 26.000,00
Cash A/R Inventory Prepaid Expenses PPE Accum. Dep. (-) TOTAL
6.000,00 338.000,00 21.000,00 386.000,00
A/P Accrued expenses Bonds payable Common stock (1 TL par) Retained earnings TOTAL
40.000,00
150.000,00 60.000,00 136.000,00 386.000,00